CTS Comments on Toyota’s January 21 Safety Voluntary Recall

ELKHART, Ind.--(BUSINESS WIRE)--CTS Corporation (NYSE: CTS) today provided comments on Toyota’s recent accelerator pedal recall. As previously announced by Toyota, the January 21 voluntary recall results from what Toyota described as “a rare set of conditions which may cause the accelerator pedal to become harder to depress, slower to return or, in the worst case, stuck in a partially depressed position.” Toyota said this condition “is rare and occurs gradually over a period of time.”

“is rare and occurs gradually over a period of time.”

As has been publicly stated by Toyota, we have no knowledge of any accidents or injuries that have resulted from this rare potential condition. Based on information that Toyota has provided us, we are aware of fewer than a dozen instances where this condition has occurred, and in no instance did the accelerator actually become stuck in a partially depressed condition.

As Toyota stated, this recall is different from and unrelated to the “sudden, unintended acceleration issue” which was the subject of the November 2009 Toyota recall. In the November recall, the pedals in Toyota models dated back to model year 2002. CTS became a pedal supplier in 2005. Accordingly, our products are not implicated by the November 2009 recall. The products we supply to Toyota, including the pedals covered by the recent recall, have been manufactured to Toyota’s design specifications.

Toyota is a small, but important, customer of CTS, representing approximately 3% of our annual sales. CTS has been actively working with Toyota for awhile to develop a new pedal to meet tougher specifications from Toyota. The newly designed pedal is now tested and parts are beginning to ship to some Toyota factories.

About CTS

CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS.” To find out more, visit the CTS Web site at www.ctscorp.com.

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