More heat for Toyota there in major hot water now!
02-22-2010, 09:50 AM
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More heat for Toyota there in major hot water now! I guess it's profits before safety for Toyota!
Toyota said it saved $100 million or more by negotiating an "equipment recall"
TOKYO (AP) -- Toyota has received a subpoena from a U.S. federal grand jury for documents related to the unintended acceleration of its vehicles and problems in the braking system of its Prius hybrid, the company said Monday, adding that it intends to comply with the request.
The news came ahead of several meetings this week in Washington on Toyota's massive recalls. Two House committees are holding hearings this week on the Japanese automaker's recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
The Japanese automaker also said Monday that it had received a request for documents related to its disclosure policies and unintended acceleration from the Securities and Exchange Commission. The requests came from the Southern District of New York on Feb. 8.
Toyota has already handed over other documents to congressional investigators, some of which claimed that it saved money by obtaining a limited recall from regulators in 2007. They could create an even bigger challenge for Toyota President Akio Toyoda, who is scheduled to testify at a House Energy and Commerce Committee hearing on Tuesday.
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $100 million or more by negotiating an "equipment recall" of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.
The savings are listed under the title, "Wins for Toyota -- Safety Group." The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.
The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls.
"You can feel that the staff were thinking more about company profits than customers," Mamoru Kato, an analyst at Tokai-Tokyo Securities, said in an e-mail after viewing the documents. "It's unfavorable for Toyota ahead of the hearings."
The documents were turned over to the House Oversight and Government Reform Committee -- which is scheduled to hold a hearing Wednesday -- and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.
The world's largest automaker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles that are threatening to undermine its reputation for quality and safety.
"This is any executive's worst nightmare -- a damning document comes out and exposes your company as having basically gone slow and tried to delay addressing significant safety problems with their product," said Jeff Kingston, director of Asian studies at Temple University Japan, referring to the documents that claimed the company saved millions in the 2007 recall.
Toyota said in a statement: "Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality."
Transportation Department spokeswoman Olivia Alair called the document "very telling. And that's why Secretary (Ray) LaHood has been saying we're going to hold Toyota's feet to the fire and make sure they do what's necessary to make their cars safe for the driving public."
The documents show the financial benefit of delay. In the presentation, Toyota said a phase-in to new safety regulations for side air bags saved the company $124 million and 50,000 man hours. Delaying a rule for tougher door locks saved $11 million.
In one passage, the document says Toyota "negotiated 'equipment' recall on Camry/ES re SA; saved $100M+, w/ no defect found."
The National Highway Traffic Safety Administration had launched an investigation in March 2007 over allegations that floor mats were interfering with accelerator pedals. Toyota told the government a month later that there was "no possibility of the pedal interference with the all-weather floor mat if it's placed properly and secured."
By that August, the government had connected the problem to a dozen deaths and a survey of 600 Lexus owners discovered 10 percent reported sudden or unexpected acceleration. But the recall in September 2007 was limited to 55,000 Camry and ES350 vehicles to replace the floor mats.
The 10-page internal presentation was dated July 6, 2009, less than two months before a high-speed crash near San Diego killed a California highway patrol officer and his family and reignited concerns over sudden acceleration in Toyotas.
In October 2009, Toyota issued its largest-ever U.S. recall, involving about 4 million vehicles, over concerns of pedals getting stuck in floor mats.
The documents also show a company expecting tougher regulation under the Obama administration.
Toyota highlighted some challenges it faces, including an "activist administration & Congress -- increasing laws & regulation," "massive government support for Detroit automakers" along with "continuing economic difficulty."
Under a heading titled "key safety issues," Toyota called the Transportation Department and NHTSA under Obama "not industry-friendly" and said the auto industry expected "a more challenging regulatory and enforcement environment."
The presentation lists Yoshi Inaba, Toyota's chief executive in North America, on its cover. Inaba is scheduled to testify before the House Energy and Commerce Committee on Tuesday, along with Toyoda and Jim Lentz, president of Toyota Motor Sales USA. The committee is also expected to hear from LaHood, NHTSA Administrator David Strickland and safety advocates.
The Oversight Committee is holding a hearing Wednesday with Lentz, LaHood and Strickland. A Senate committee is planning a March 2 hearing.
Toyoda arrived in the United States on Saturday and appeared to be preparing for the hearing, the Yomiuri newspaper, Japan's largest, reported Monday.
Toshiro Yoshinaga, an analyst at Aizawa Securities in Tokyo, said that Toyota's actions as seen in the documents shows the company believed the problems with its vehicles were unlikely to become a major issue and illustrate the company's weakness in crisis management.
"Toyota's perception was extremely optimistic," he said. "It's sense of crisis has been lacking."
Temple Universty's Kingston said Toyoda must make clear that the company has learned a lesson from growing too quickly and losing track of quality control, though even that will be unlikely to stave off harsh criticism from lawmakers.
"He's going to be taking an awful pummeling, I think," Kingston said.
Toyota said it saved $100 million or more by negotiating an "equipment recall"
TOKYO (AP) -- Toyota has received a subpoena from a U.S. federal grand jury for documents related to the unintended acceleration of its vehicles and problems in the braking system of its Prius hybrid, the company said Monday, adding that it intends to comply with the request.
The news came ahead of several meetings this week in Washington on Toyota's massive recalls. Two House committees are holding hearings this week on the Japanese automaker's recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
The Japanese automaker also said Monday that it had received a request for documents related to its disclosure policies and unintended acceleration from the Securities and Exchange Commission. The requests came from the Southern District of New York on Feb. 8.
Toyota has already handed over other documents to congressional investigators, some of which claimed that it saved money by obtaining a limited recall from regulators in 2007. They could create an even bigger challenge for Toyota President Akio Toyoda, who is scheduled to testify at a House Energy and Commerce Committee hearing on Tuesday.
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $100 million or more by negotiating an "equipment recall" of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.
The savings are listed under the title, "Wins for Toyota -- Safety Group." The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.
The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls.
"You can feel that the staff were thinking more about company profits than customers," Mamoru Kato, an analyst at Tokai-Tokyo Securities, said in an e-mail after viewing the documents. "It's unfavorable for Toyota ahead of the hearings."
The documents were turned over to the House Oversight and Government Reform Committee -- which is scheduled to hold a hearing Wednesday -- and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.
The world's largest automaker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles that are threatening to undermine its reputation for quality and safety.
"This is any executive's worst nightmare -- a damning document comes out and exposes your company as having basically gone slow and tried to delay addressing significant safety problems with their product," said Jeff Kingston, director of Asian studies at Temple University Japan, referring to the documents that claimed the company saved millions in the 2007 recall.
Toyota said in a statement: "Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality."
Transportation Department spokeswoman Olivia Alair called the document "very telling. And that's why Secretary (Ray) LaHood has been saying we're going to hold Toyota's feet to the fire and make sure they do what's necessary to make their cars safe for the driving public."
The documents show the financial benefit of delay. In the presentation, Toyota said a phase-in to new safety regulations for side air bags saved the company $124 million and 50,000 man hours. Delaying a rule for tougher door locks saved $11 million.
In one passage, the document says Toyota "negotiated 'equipment' recall on Camry/ES re SA; saved $100M+, w/ no defect found."
The National Highway Traffic Safety Administration had launched an investigation in March 2007 over allegations that floor mats were interfering with accelerator pedals. Toyota told the government a month later that there was "no possibility of the pedal interference with the all-weather floor mat if it's placed properly and secured."
By that August, the government had connected the problem to a dozen deaths and a survey of 600 Lexus owners discovered 10 percent reported sudden or unexpected acceleration. But the recall in September 2007 was limited to 55,000 Camry and ES350 vehicles to replace the floor mats.
The 10-page internal presentation was dated July 6, 2009, less than two months before a high-speed crash near San Diego killed a California highway patrol officer and his family and reignited concerns over sudden acceleration in Toyotas.
In October 2009, Toyota issued its largest-ever U.S. recall, involving about 4 million vehicles, over concerns of pedals getting stuck in floor mats.
The documents also show a company expecting tougher regulation under the Obama administration.
Toyota highlighted some challenges it faces, including an "activist administration & Congress -- increasing laws & regulation," "massive government support for Detroit automakers" along with "continuing economic difficulty."
Under a heading titled "key safety issues," Toyota called the Transportation Department and NHTSA under Obama "not industry-friendly" and said the auto industry expected "a more challenging regulatory and enforcement environment."
The presentation lists Yoshi Inaba, Toyota's chief executive in North America, on its cover. Inaba is scheduled to testify before the House Energy and Commerce Committee on Tuesday, along with Toyoda and Jim Lentz, president of Toyota Motor Sales USA. The committee is also expected to hear from LaHood, NHTSA Administrator David Strickland and safety advocates.
The Oversight Committee is holding a hearing Wednesday with Lentz, LaHood and Strickland. A Senate committee is planning a March 2 hearing.
Toyoda arrived in the United States on Saturday and appeared to be preparing for the hearing, the Yomiuri newspaper, Japan's largest, reported Monday.
Toshiro Yoshinaga, an analyst at Aizawa Securities in Tokyo, said that Toyota's actions as seen in the documents shows the company believed the problems with its vehicles were unlikely to become a major issue and illustrate the company's weakness in crisis management.
"Toyota's perception was extremely optimistic," he said. "It's sense of crisis has been lacking."
Temple Universty's Kingston said Toyoda must make clear that the company has learned a lesson from growing too quickly and losing track of quality control, though even that will be unlikely to stave off harsh criticism from lawmakers.
"He's going to be taking an awful pummeling, I think," Kingston said.
02-22-2010, 07:36 PM
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will chevy be smart and give the tree huggers the volt already? I think its time to pull the plug on toyota (no pun intended).
BTW i am doing my part to contribute to Toyotas downfall. I cancelled my order for my Prius as my company car. Im going domestic.
BTW i am doing my part to contribute to Toyotas downfall. I cancelled my order for my Prius as my company car. Im going domestic.
02-22-2010, 09:21 PM
#5
No they should be smart and help the liberal yuppies dumb asses realize that Hybrids are worse for the environment than our cars by a lot.
Maybe they will step up to the plate and find a combustible source that burns clean and works well, ohhh wait ethanol, albeit it still uses fossil fuels but still better, or work on something else that would work way better. Or maybe I am hoping for too much like all Obama supporters did.
Maybe they will step up to the plate and find a combustible source that burns clean and works well, ohhh wait ethanol, albeit it still uses fossil fuels but still better, or work on something else that would work way better. Or maybe I am hoping for too much like all Obama supporters did.
02-22-2010, 09:49 PM
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Sadly, I have a feeling that most people will forgive and forget after the next big news storm hits the fore... Toyota will get a walk and the lemmings will buy their products again.
Never even considered buying a Toyota, so the only effect on me is trying to dodge their junk that is currently on the road.
Never even considered buying a Toyota, so the only effect on me is trying to dodge their junk that is currently on the road.
02-22-2010, 10:06 PM
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Sadly, I have a feeling that most people will forgive and forget after the next big news storm hits the fore... Toyota will get a walk and the lemmings will buy their products again.
Never even considered buying a Toyota, so the only effect on me is trying to dodge their junk that is currently on the road.
Never even considered buying a Toyota, so the only effect on me is trying to dodge their junk that is currently on the road.
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Well said. 
02-22-2010, 11:05 PM
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02-22-2010, 11:19 PM
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buy american! help out our own economy... on another note i was thinking if those **** that make laws want to come up with bullshit like no driving and talking, we should get something passed that affects them, like no eating and driving! end rant... sorry for the hijack
02-23-2010, 12:40 AM
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you are off a little bit
http://www.mylemon.com/blog/2008/10/...ls-of-all.html
http://www.mylemon.com/blog/2008/10/...ls-of-all.html
02-23-2010, 03:06 AM
#14
That's almost always how it's always been, though... Look at Ford and their latest burning cruise control issue that has been affecting vehicles since 1992. It's 2010 and there are still Ford vehicles on the road that can randomly burst into flames under the right conditions. Plus, how many fatal auto collisions are linked to a defect in the vehicle? It's tough to tell when the witness is dead and the remains of them and their vehicle are a smoldering pile.
02-23-2010, 08:40 AM
#15
buy american! help out our own economy... on another note i was thinking if those **** that make laws want to come up with bullshit like no driving and talking, we should get something passed that affects them, like no eating and driving! end rant... sorry for the hijack
oh ok, i had a friend say that this moves toyota up to #4 on the list.
02-23-2010, 01:43 PM
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That's almost always how it's always been, though... Look at Ford and their latest burning cruise control issue that has been affecting vehicles since 1992. It's 2010 and there are still Ford vehicles on the road that can randomly burst into flames under the right conditions. Plus, how many fatal auto collisions are linked to a defect in the vehicle? It's tough to tell when the witness is dead and the remains of them and their vehicle are a smoldering pile.
02-24-2010, 12:56 AM
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180LS1: The Billions that the American auto industry took was in loans which GM has started to pay back. True they may not have to pay back ALL of it, but its not like the banking system which is taking their money and going on vacation or handing out bonuses.
Ide rather have my car catch fire, then at least I can see there is a problem and get out. And if the engine bay catches fire, the engine will stop working and I can also stop and get out. trying to decide if I should jump out of a runaway car is much more difficult.
speaking for Ford cruise control, apparently the generation before the "suddenly bursts into flames" had "sudden acceleration" just like the toyotas do now. i wonder which is worse, having your cruise control cause you to not be able to stop the car, or having the cruise control implode and burn you, lol.
02-24-2010, 08:48 AM
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I don't agree that it was right to bailout the automakers, but I think it had to be done. And like it was stated, GM is already paying back the loans, and the Government will get all of their money back when GM goes public.
02-24-2010, 09:10 AM
#20
Actually it's the government's money. It'll be future generations paying this off.
I don't agree that it was right to bailout the automakers, but I think it had to be done. And like it was stated, GM is already paying back the loans, and the Government will get all of their money back when GM goes public.
I don't agree that it was right to bailout the automakers, but I think it had to be done. And like it was stated, GM is already paying back the loans, and the Government will get all of their money back when GM goes public.
And if it is Govt money how do they make money? Oh ya, they take it from us.