Toyota set to recall the Lexus Hybrids after Prius 2010; share price gains despite recalls

The car manufacturer has also suspended production of the Lexus hybrid involved while cars are recalled.

Despite this, its share price gained in a choppy session of trading which saw Japan's Nikkei 225 fall on euro-zone debt problems.

Norihiro Fujito, general manager of Mitsubishi UFJ Securities added that the Toyota share gains are probably the only thing keeping Nikkei's losses from extending further:

"There's a lot of concerns out there - the euro zone issues, the chance of limits on U.S bank risk taking, and worries about Chinese credit tightening" said Norihiro, "This is creating an atmosphere that counters any potential boost from Japanese earnings."

Analysts said that the reason Toyota's share price was rising was because of the positive effects the recall has on investment in the company.

"Shares fell while Toyota appeared not to be doing anything to deal with its problems, but now the fact that they're taking concrete steps on the issue is being seen as positive" said Hioaki Osakabe, a fund manager at Chibagin Asset Management.

Earlier today, Toyota officials went to Japan's Transport Ministry to notify the government that the latest release of the world's top selling hybrid car would have to be recalled.

It is understood that Lexus' involvement in the crisis stems from the dual platform which they share, meaning any software faults in the Prius would affect Lexus' HS 250.

"We have decided to do a recall, we will do our best to regain customers trust." said Hiroyuki Yokoyama, a Toyota manager.