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Showing posts with label NHTSA. Show all posts
Showing posts with label NHTSA. Show all posts

Monday, March 15, 2010

Runaway Prius Story A Hoax? Possible Gov't Cover Up





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Federal Government Cannot Explain Runaway Prius Incident



The federal government said Monday it cannot explain a reported incident of sudden, high-speed acceleration in a Toyota Prius on a California freeway last week, a malfunction the driver's lawyer is describing as "the ghost in the machine."

The National Highway Traffic Safety Administration said in a statement that it continues to investigate but "we may never know exactly what happened with this car."

Prius owner James Sikes called 911 last week to report losing control of his Prius as the hybrid reached speeds of 94 mph. A highway patrol officer helped bring the vehicle to a safe stop.

On Monday, Sikes' attorney, John Gomez, said it's "not surprising" that investigators have not been able to replicate the incident.

"This problem is sort of a ghost in the machine that is the Toyota system," Gomez said Sunday. "It doesn't leave a fault code, it doesn't leave a footprint and you can't make it happen upon demand."

"They have never been able to replicate an incident of sudden acceleration. Mr. Sikes never had a problem in the three years he owned this vehicle," he added.

The NHTSA said its engineers are reviewing data from Sikes' Prius but have so far not been able to find anything to explain the reported incident. Inspectors in California tried during a two-hour test drive to duplicate the acceleration, but were unable to do so.

Kurt Bardella, a spokesman for Rep. Darrell Issa, R-Calif., said the failure to duplicate the stuck accelerator, along with a vehicle design to prevent such occurrences, raises questions about the driver's story.

"We're not saying Mr. Sikes is wrong or that he lied, we're saying that questions have arisen in the investigation," Bardella said.

Toyota Motor Corp. planned to announce preliminary findings of its investigation at a news conference Monday in San Diego.

NHTSA is looking into claims from more than 60 Toyota owners that their vehicles continue to accelerate unexpectedly despite having their vehicles repaired.

Technicians with the NHTSA and Toyota could not duplicate what Sikes said he experienced March 8 on a mountainous but lightly traveled stretch of Interstate 8 east of San Diego, according to a congressional staffer's memo prepared for the House Committee on Oversight and Government Reform.

"Every time the technician placed the gas pedal to the floor and the brake pedal to the floor the engine shut off and the car immediately started to slow down," the memo read.

According to the memo, a Toyota official who was at the two-day inspection last week in suburban San Diego explained that an electric motor would "completely seize" if a system to shut off the gas when the brake is pressed fails, and there was no evidence to support that happened.

"In this case, knowing that we are able to push the car around the shop, it does not appear to be feasibly possible, both electronically and mechanically that his gas pedal was stuck to the floor and he was slamming on the brake at the same time," according to the memo.

Toyota has recalled millions of cars because of floor mats that can snag gas pedals or accelerators that can sometimes stick. Sikes' car was covered by the floor mat recall but not the one for sticky accelerators. He later told reporters that he tried to pull on the gas pedal during his harrowing ride, but it didn't "move at all."

The Prius is powered by two electric motor-generators and a small gasoline engine, all connected by transmission gears. A computer, which Toyota calls the "hybrid control computer" determines what combination of motors is needed and which would be most efficient.

Craig Hoff, a professor of mechanical engineering at Kettering University in Flint, Mich., said that for the Prius to accelerate out of control, at least two systems would have to fail simultaneously. They are the sensor signal that tracks the brake and gas pedal positions when the driver presses on them and the hybrid control computers.

"The chance of them both going wrong, plus the fact that the signal is bad, it just seems very, very, very remote," Hoff said. "Could it happen? Statistically, yes. But it just doesn't seem very likely."

Several events usually combine to cause problems with cars, and it's difficult to reproduce them, Hoff said.

"It's going to make it really hard to find, because you've got to line up the multiple effects," he said.

The congressional memo said both the front and rear brakes were worn and damaged by heat, consistent with Sikes saying that he stood on the brake pedal with both feet and was unable to stop the car. But if the fail-safe system worked properly, the brakes wouldn't have been damaged because power would have been cut to the wheels.

Gomez said the best evidence that his client was frantically slamming the brakes is that a California Highway Patrol officer who was giving Sikes instructions over a loudspeaker smelled burning brakes and saw the lights on.



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Runaway Prius Driver: Brakes Were "Almost Burned"


Before he called 911, James Sikes says he reached down with his hand to loosen the "stuck" accelerator on his 2008 Toyota Prius, his other hand on the steering wheel. The pedal didn't move.

"My car can't slow down," he began when a California Highway Patrol dispatcher answered his call.

Sikes, 61, rolled to a stop 23 harrowing minutes later, he and his blue Prius emerging unscathed but Toyota Motor Corp. suffering another big dent. Toyota has watched its reputation for quality crumble with recalls tied to risks that cars can accelerate uncontrollably or can't brake properly.

Todd Neibert, the CHP officer who gave instructions to Sikes over a loudspeaker as they went east on mountainous Interstate 8 in San Diego County Monday afternoon, said he smelled burning brakes when he caught up with the Prius.

The officer said he told Sikes to push the brake pedal to the floor and apply the emergency brakes as the Prius neared 85 mph. The car slowed to about 55 mph, at which time Sikes says he turned off the ignition and the car came to a stop.

"The brakes were definitely down to hardly any material," Neibert told reporters Tuesday. "There was a bunch of brake material on the ground and inside the wheels."

The officer found the floor mat properly placed and the accelerator and brake pedals in correct resting position.

The freeway incident happened at the worst possible time for Toyota - just hours after it invited reporters to hear experts insist that electronic flaws could not cause cars to speed out of control under real driving conditions.

Another driver in suburban New York told police Tuesday that her 2005 Toyota Prius accelerated on its own, then lurched down a driveway, across a road and into a stone wall. The driver, a 56-year-old woman, escaped serious injury. Police said the floor mat did not appear to be a factor; Toyota said it's not yet known whether the company will investigate.

The National Highway Traffic Safety Administration has sent two investigators to examine Sikes' car. Toyota spokesman Brian Lyons said the automaker is sending three of its own technicians to investigate.

Another Toyota spokesman, John Hanson, said the company wanted to talk to the driver.

Sikes' car was covered by Toyota's floor mat recall, but the driver said the pedal jammed and was not trapped under the mat.

Sikes, a real estate agent, said he was passing another car when the accelerator stuck and eventually reached 94 mph.

During the two 911 calls, Sikes ignored many of the dispatcher's questions, saying later that he had to put his phone on the seat to keep his hands on the wheel.

Leighann Parks, a 24-year-old dispatcher, repeatedly told him to throw the car into neutral but got no answers.

"He was very emotional, you could tell on the line he was panicked," Parks told reporters outside the CHP's El Cajon office. "I could only imagine being in his shoes and being that stressed."

Neibert told Sikes after the CHP caught up with him to shift to neutral but the driver shook his head no. Sikes told reporters he didn't go into neutral because he worried the car would flip.

The driver rolled down the window and Neibert told him to apply both brakes. Sikes said he lifted his buttocks from the seat to press the floor brake, an account backed by the officer.

The cars maneuvered around two trucks going uphill to a "clear, wide-open road," Neibert said. The officer had only about 15 miles to stop the vehicle before a steep downgrade and was considering spike strips to puncture the tires as a last resort.

In the final minutes of the 911 call, Sikes tells the dispatcher, "My brakes are almost burned out."

After the car stops, Sikes sighs with relief.

Neibert, a 14-year CHP veteran, worked with Officer Mark Saylor, who was killed in August along with his wife, her brother and the couple's daughter after their Lexus' accelerator became trapped by a wrong-size floor mat on a freeway in nearby La Mesa. The loaner car hit a sport utility vehicle and burst into flames.

Toyota has since recalled some 8.5 million vehicles worldwide - more than 6 million in the United States - because of acceleration problems in multiple models and braking issues in the Prius. Regulators have linked 52 deaths to crashes allegedly caused by accelerator problems. Still, there have been more than 60 reports of sudden acceleration in cars that have been fixed under the recall.



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Sources: MSNBC, CBS News, Fox News, Google Maps

Wednesday, February 24, 2010

Toyota Dealerships Strongly Defend Company Brand



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Sources: MSNBC, Toyota

Damage To Toyota's Image Permanent, Electronics The Problem





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Tough Hearings Leave Dents In Toyota’s Image



It can take decades to build a reputation and just months to watch it collapse. Just ask Toyota President Akio Toyoda, who found himself sitting in the hot seat Wednesday, facing skeptical members of the House Oversight and Government Reform Committee.

Barely a year ago, when the executive was appointed to run the company his grandfather founded, the Japanese automotive giant seemed to be on top of the world. True, it was running a rare loss, losing more than $4 billion in its latest fiscal year, but it had just nudged past its long-time archrival, General Motors, to become the world’s largest automaker.

The cornerstones of that growth were safety, quality and reliability. In the United States, Toyota’s largest market, the maker also scored points with its aggressive expansion of facilities. With billions invested in North American assembly, design and engineering operations that employ tens of thousands, Toyota has taken pains to promote itself as much an American company as its competitors in Detroit.

But the hearings on Capitol Hill have torn asunder Toyota’s carefully cultivated image, leaving observers to wonder whether it was ever more than a Potemkin village.

In prepared remarks, CEO Toyoda, 53, conceded to the committee, "We pursued growth over the speed at which we were able to develop our people and our organization," adding that, "I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced."

The humble tone is one that both Toyoda and Toyota have sounded repeatedly in recent months, starting with last October’s recall of 3.8 million cars, crossovers and trucks for problems with “carpet entrapment.” Things got worse in January, when millions more vehicles were recalled due to potentially sticky accelerators. In recent weeks the situation has spun seemingly out of control, with still more recalls and investigations launched for matters ranging from faulty steering to intermittent brakes.

Toyota has tried to balance its corporate mea culpa with pledges — aired on TV and in full-page newspaper ads — aimed at convincing consumers it has the situation under control. Yes, there are problems, but Toyota officials know how to fix them.

But that spin lost momentum in two tough days of testimony on Capitol Hill.

Members of Congress initially were polite, praising Toyoda for agreeing to step into a lion's den. But he and a top deputy drew heavy fire from both Democrats and Republicans for the company's slowness in dealing with safety defects in its vehicles.

"I sincerely regret that some people actually encountered accidents in their vehicles," said Toyoda, who gave his opening remarks in heavily accented English but chose to respond to questions in Japanese with a translator.

Toyoda pledged his company would change the way it handles consumer complaints, including seeking greater input from drivers and outside safety experts when considering recalls. Toyota managers will also drive cars under investigation to experience potential problems first hand, he said.

A previous hearing Tuesday before a House Energy and Commerce panel did not go well for the company.

Jim Lentz, Toyota’s top U.S. executive, declared he was confident “the solutions we have developed are both effective and durable.” He went on to dismiss critics who contend faulty electronic control systems might be at the root of some problems on Toyota vehicles.

Both assertions now seem questionable. In his testimony Lentz eventually conceded that as many as 70 percent of the complaints over so-called “unintended acceleration” are not necessarily covered by the two related recalls now under way.

(Other Toyota officials have separately confirmed that the recall for faulty brakes on the 2010 Prius may be only a partial solution since it now appears there is a similar issue with earlier versions of the high-profile hybrid.)

Making matters worse, lawmakers heard testimony from David W. Gilbert, a professor of automotive technology at Southern Illinois University, who countered Toyota’s long-standing assertion that its electronics are well-designed and well-tested. Gilbert said testing showed that Toyota's electronic throttle control could malfunction which, in turn, could lead to unintended acceleration.

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At least one member of the panel raised questions about the testing because it was partly funded by attorneys who are involved in litigation against Toyota.

By the end of the first day of hearings, Lentz’s own confidence in Toyota’s ability to identify and fix the problems with its vehicles seemed to have been shaken, as seen in this exchange between Lentz and Rep. Henry Waxman, D-Calif:

WAXMAN: Do you believe that the recall on the ... carpet changes and the recall on the sticky pedal will solve the problem of sudden, unintended acceleration?

LENTZ: Not totally.

WAXMAN: OK, what do you need to do?

LENTZ: We need to continue to be vigilant and continue to investigate all of the complaints that we get from consumers, that we have done a relatively poor job of doing in the past.


Lentz also said he was "embarrassed" to hear testimony from a driver who said her nearly new Lexus ES350 suddenly accelerated up to 100 mph in 2006 before she was able to bring it under control.

One can only wonder where that leaves the millions of people driving Camry sedans, Tundra pickups and Prius hybrids.

Perhaps feeling a bit snookered by a well-oiled machine that made plenty of promises during the good times but which now appears to be imploding. Consider the way Toyota has been billing itself as an “American” company, in recent years, devoting a fair chunk of its marketing budget to talk about its U.S. plants and people. The problem is that the company has been exposed as more of a modern-day trading post, doing business with the native population.

The hearings have revealed that virtually all key decisions, other than how to market and sell Toyota products, are made in Japan. The flow of information, particularly on safety matters, is one-way, from the California headquarters of Toyota Motor Sales, U.S.A., to corporate headquarters in Japan.

Lentz conceded that his corporate superiors didn’t share information about global recalls with him — or, for that matter, with the National Highway Traffic Safety Administration. And that leaves the door open to potentially serious problems.

The automaker has received a subpoena from U.S. District Court, which has empowered a grand jury criminal investigation, along with another subpoena from the Securities and Exchange Commission, which is looking into possible disclosure issues and securities fraud.

While most of the action this week is taking place on Capitol Hill, the problems for Toyota seem to be coming from every angle. A new report, released Wednesday, provides still more reason for concern. The 2010 Customer Service Index, compiled by quality gurus J.D. Power and Associates, notes that the Toyota brand ranked well below average in terms of how its dealers handle customers.

With those dealers reportedly racing to fix as many as 50,000 recalled vehicles daily, that could be a significant source of friction. For some nervous motorists, it will take weeks to get a service appointment scheduled. To drive away angry — and uncertain the fix will work — is not a recipe for renewed loyalty.

If Toyoda truly believes that the company his grandfather founded has grown too fast for itself, he may have that problem solved for him. Toyota owners are, in fact, among the industry’s most loyal, but the steady drumbeat of bad news, compounded by lingering concerns about the safety of its vehicles, will likely stall the company’s momentum. Whether it can ever rebuild its tattered image and regain the trust of the public can’t be answered after two days of testimony.



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Sources: MSNBC, Toyota, Google Maps

Ray Lahood Defends NHTSA Cover Up, Toyota Chief Testifies




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Sorry Won’t Be Enough From Toyota’s Top Boss


Toyota CEO Akio Toyoda came to Washington to publicly apologize to Congress Wednesday for safety lapses that led to widespread recalls for accelerator and breaking failures and for a corporate culture that may have made things worse. A House committee chairman said blame must be shared by both Toyota and U.S. safety regulators.

Rep. Edolphus Towns, D-N.Y., chairman of the House Committee on Oversight and Government Reform, said the National Highway Traffic Safety Administration (NHTSA) failed to follow through aggressively on thousands of complaints dating back a decade about sudden acceleration in Toyota vehicles.

NHTSA , which is part of the Transportation Department, "failed the taxpayers and Toyota failed their customers," Towns declared ahead of eagerly awaited testimony by the company's chief executive.

"Thousands of complaints, multiple investigations, and serial recalls are bad enough. But we now have 39 deaths attributed to sudden acceleration in Toyotas," Towns said. "To give that horrifying number perspective, there were 27 deaths attributed to the famous (Ford) Pinto exploding gas tank of the 1970s."

Toyoda, the 53-year-old scion of the Toyoto empire, readied testimony apologizing for the problem and acknowledging that the world's largest automaker grew too fast to keep up with safety controls

"We pursued growth over the speed at which we were able to develop our people and our organization," he said. "I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced."

Towns asked Transportation Secretary Ray LaHood a question on behalf all of those Toyota owners and drivers: Are the cars safe to drive?

"We have listed every Toyota that's up for recall" on the Transportation Department Web site, LaHood said. "I want anybody who has one of those cars to take it to the dealer and make sure it gets fixed."

LaHood said those vehicles on the recall list posted on his department's Website, http://www.dot.gov, "are not safe."

David Strickland, the new head of the National Highway Traffic Safety Administration, had been on the list of witnesses but was removed right before the hearing started.

Republicans pressed LaHood about why Strickland was dropped from the hearing witness list, saying they may call him for another hearing. LaHood said Strickland has held his post for only a short time and that LaHood would answer for the safety agency.

"I am not going have our NHTSA administrator, who has been on the job 40 days, appear. I am taking responsibility for this," LaHood said.

Meanwhile, the Senate Commerce Committee requested an investigation by the Transportation Department's inspector general of NHTSA's handling of the Toyota recalls. The committee wants the IG to expand the review to include industry-wide complaints and reports collected by the agency on unintended acceleartion or brake failure, compliance with recent auto safety laws and government ethics at NHTSA.

Rep. Darrell Issa of California, the leading Republican on the House oversight panel, waved a gas pedal before LaHood and complained that Toyota knew about problems of sticking gas pedals and improperly placed floor mats years ago and made some fixes on models sold in Japan but delayed addressing the problems on other cars, including some of its most popular models sold in the U.S., until just recently.

Toyoda was to be the second witness to appear before the panel and was not in the room during opening statements by members and LaHood's testimony.

An apology may not be enough for the feisty panel of lawmakers on the committee in a year in which every one faces re-election. Nor will any culture gap; Japanese CEOs typically serve symbolic roles akin to figureheads without much power to control operations.

Toyoda's appearance comes as Japan opened its own investigation into unintended acceleration with Toyota and other vehicles in that country.

Rep. Paul Kanjorski, a member of the committee, said an apology alone will not suffice. "He's going to have to say more than that," the Pennsylvania Democrat said. "We all have questions for him."

In harmony-loving Japan, company chiefs are usually picked to cheerlead the rank and file. As the grandson of the company's founder, Toyoda was groomed to play that role — and even dubbed "the prince" of the auto empire for a time.

Still, Toyoda is familiar with the United States and its corporate culture. He received his MBA in 1982 at Babson College in Massachusetts and spent time in California as vice president of a joint venture between Toyota and General Motors Corp.

"We do not seek the spotlight," the casual Toyoda was quoted as saying in his first interview. "We try always to be low-key, not to be outspoken."

A dozen years later, the blood from dozens of claims over fatal crashes staining the family dynasty, Toyoda has no choice. A significant chunk of Washington's lobbying industry and some part of the struggling American economy hang on his appearance as it's broadcast around the world.

Japan's national Asahi newspaper said in an editorial that Toyoda's testimony "not only determines Toyota's fate, but may affect all Japanese companies and consumer confidence in their products. President Toyoda has a heavy load on his shoulders."

Toyoda, who speaks halting English, planned to appear with a translator by his side, as well as Yoshimi Inaba, president and CEO of Toyota Motor North America Inc., who is fluent in English.

Also scheduled to appear was the mother of an off-duty California highway patrolmen killed with three family members in a runaway Lexus on a San Diego highway in August.

Mississippi Gov. Haley Barbour, in an op-ed editorial in Wednesday's editions of The Washington Post, said, "I hope Congress will resist the temptation to attack Toyota simply to advance the interests of American competitors." The U.S. government owns a majority stake in General Motors and a smaller stake in Chrysler as a result of last year's bailouts.

Toyoda's three-page statement departs somewhat from his native formality. In it, Toyoda emphasizes that he personally test-drives Toyotas. And he makes a personal appeal for credibility.

"My name is on every car," he says.



Sources: MSNBC

Tuesday, February 23, 2010

Toyota Execs In The Hot Seat On Capitol Hill...Watch Live



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Sources: MSNBC

Did Toyota Care More About Profits Than Customers? Yes!



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Toyota Apologizes But Asserts Electronics OK



The president of Toyota's operations apologized for the company's handling of safety issues Tuesday while insisting that electronic problems did not contribute to sudden acceleration of its cars. Transportation Secretary Ray LaHood argued that such a possibility could not be ruled out.

Toyota's James Lentz and LaHood presented differing views in prepared testimony before the House Energy and Commerce Committee's investigative panel, the first of three congressional panels holding hearings on Toyota's problems.

The chairman of the House Energy and Commerce investigative subcommittee, Rep. Bart Stupak, D-Mich., set the tone for sharp questioning of Lentz at the hearing's outset.

"Toyota all but ignored pleas from consumers to examine sudden unintended acceleration events," he said. "They boast in a briefing of saving Toyota $100 million by negotiating a limited recall. They claim that they first became aware of sticking pedals in late October of 2009 when in fact they had received numerous complaints many months and years earlier."

"They misled the American public," Stupak added, "by saying that they and other independent sources had thoroughly analyzed the electronics systems and eliminated electronics as a possible cause of sudden unintended acceleration when, in fact, the only such review was a flawed study conducted by a company retained by Toyota's lawyers."

Lentz said in prepared testimony that Toyota had poor communications within the company, with government regulators and with its customers.

But he also said that Toyota has no problems with its electronic throttle controls, which have been blamed as a possible cause of unintended acceleration in some Toyota models.

Also being heard from Tuesday are drivers like Rhonda Smith, a Sevierville, Tenn., woman whose Toyota-made Lexus suddenly zoomed to 100 miles per hour as she tried to get it to stop — shifting to neutral, trying to throw the car into reverse and hitting the emergency brake. Finally, her car slowed down before she crashed.

Smith wrote down her feelings after the 2006 scare, saying she had "a near death experience, which occurred on October 12, 2006 between approximately 10:50 and 11:00 a.m. At almost exactly 6 miles God intervened" and slowed the car. She said that nothing she had tried had worked.

Smith's description of her nightmare ride in October 2006 will precede testimony by safety experts — and set the tone for the hearing. Toyota executives and the secretary of transportation also will be at the witness table. Members of the House Energy and Commerce Committee's investigative panel will be armed with preliminary staff findings that Toyota and the government failed to protect the public.

Toyota, which has recalled 8.5 million vehicles to fix acceleration problems in several models and braking issues in the 2010 hybrid Prius, is bringing apologies to the hearing.

"In recent months, we have not lived up to the high standards our customers and the public have come to expect from Toyota," said Lentz, president and chief operating officer of Toyota Motor Sales U.S.A. Inc. in prepared testimony. "Put simply, it has taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts."

More than 150 Toyota dealers gathered in the Capitol Tuesday morning before the hearing to lobby lawmakers in support of the carmaker. Many wore buttons saying, "I am Toyota in America."

"We made a choice, a conscious decision, to be part of something, rather than just submit to it," said Tammy Darvish, a Washington area dealer who helped organize the action, which Toyota also helped coordinate.

Dealers Complain

Toyota dealers are complaining that the besieged automaker is being treated unfairly by the U.S. government. Some say it's because the government has invested billions in two competitors, General Motors and Chrysler.

At a news conference in advance of the hearing Tuesday morning, some complained the government is picking on Toyota, even though there have been dozens of recalls of other automakers' vehicles in the past year.

Toyota revealed Monday that federal prosecutors and the Securities and Exchange Commission are now investigating the company's safety problems and what it told government investigators.

Lentz was defiant on one point, asserting that Toyota is confident "no problems exist with the electronic throttle control system in our vehicles. We have designed our electronic throttle control system with multiple fail-safe mechanisms to shut off or reduce engine power in the event of a system failure."

LaHood, in written, prepared testimony, said his agency will ensure the safety of Toyota vehicles. He added the department's investigation includes the possibility that interference with electronics had a role in sudden acceleration.

"Although we are not aware of any incident proven to be caused by such interference, NHTSA (the National Highway Traffic Safety Administration) is doing a thorough review of that subject to ensure safety," the secretary said. "If NHTSA finds a problem, we will make sure it is resolved."

Slow to Respond

Committee investigators have made preliminary findings that the government was slow to respond to 2,600 complaints of sudden unintended acceleration from 2000 to 2010.

LaHood countered, "Every step of the way, NHTSA officials have pushed Toyota to take corrective action so that consumers would be safe."

On Wednesday, the House Oversight and Government Reform Committee will hear from company president Akio Toyoda, who is expected to speak to the committee and the American public through a translator.

In an opinion piece published by The Wall Street Journal, Toyoda acknowledged that the automaker had stumbled badly.

"It is clear to me that in recent years we didn't listen as carefully as we should — or respond as quickly as we must — to our customers' concerns," wrote Toyoda.



Sources: MSNBC, Toyota

Thursday, February 18, 2010

Feds Begin Formal Investigation Into Toyota Corolla Complaints




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Feds To Open Formal Investigation Of Toyota Corolla


First it was gas pedals, then brakes. Now Toyota and the government are looking into complaints that the popular Corolla is difficult to steer straight, raising a new safety concern ahead of next week's congressional hearing about the automakers recalls.

But how worried should drivers be? Or is this an example of how any problem at the Japanese company now gets intense scrutiny?

The executive in charge of quality control said the company is reviewing fewer than 100 complaints about power steering in the Corolla. Toyota sold nearly 1.3 million Corollas worldwide last year, including nearly 300,000 in the United States, where it trailed only Camry as Toyota's most popular model.

The executive, Shinichi Sasaki, said drivers may feel as though they are losing control over the steering, but it was unclear why. He mentioned problems with the braking system or tires as possible underlying causes. U.S. officials are also investigating.

He stressed that the company was prepared to fix any defects it finds and that executives were considering a recall as an option, although no decision had been made.

In Japan, President Akio Toyoda said he did not intend to appear at congressional hearings next week in Washington, preferring to leave that to his U.S.-based executives while he focuses on improving quality controls. Toyoda, grandson of the company's founder, said he would consider attending if invited.

Also Wednesday, a Transportation Department official said the agency planned to open an investigation into the reports about the Corolla.

The preliminary investigation is expected to begin Thursday and involve an estimated 500,000 vehicles. The official spoke on condition of anonymity because the department had not yet notified Toyota of the probe.

In an attempt to reassure car owners, Toyota Motor Corp. said it would install a backup safety system in all future models worldwide that will override the accelerator if the gas and brake pedals are pressed at the same time. Acceleration problems are behind the bulk of the 8.5 million vehicles recalled by the automaker since November.

The company said it was placing ads in U.S. newspapers Thursday, featuring an open letter from Jim Lentz, president of Toyota Motor Sales USA, seeking to answer concerns over quality issues.

"History shows that great companies learn from their mistakes. That's why all 172,000 people working for Toyota and our dealers are doing more than ever to make things right for our customers today and for the future," it says.

The emergence of potential steering problems with Corolla presented another roadblock in the automaker's efforts to repair its image of building safe, reliable vehicles. Dealers across the U.S. are fixing accelerators that can stick, floor mats that can trap gas pedals and questionable brakes on new Prius hybrids.

Auto industry experts said any power steering troubles on the Corolla were less worrisome than accelerator pedals or brakes because drivers could still steer the vehicle, even though doing so may be more difficult.

The government investigation comes even though the automaker said it has received relatively few complaints about the popular compact.

Even so, in the United States, the National Highway Traffic Safety Administration has received a growing number of complaints from drivers about power steering on 2009 and 2010 Corollas. The numbers are small compared to Toyota's overall sales — only about 150 reports for those two models. By comparison, there are more than 1,000 complaints about problems with 2010 Prius brakes, a vehicle Toyota has already recalled.

But the decision to investigate the Corolla offered further evidence that the automaker is exposed to heightened scrutiny of its cars and trucks.

Some Corolla drivers said they had difficulty keeping the vehicle straight, especially at higher speeds. They reported having to fight the wheel to keep the car from wandering between lanes.

Jerry Josefy, a 71-year-old retired farmer and mechanic from Grandfield, Okla., said he noticed problems with the steering on his 2009 Corolla when he drove it home after buying it last year.

He took it back to the dealer for repairs, but the steering trouble persisted. Josefy still drives the car, but said it requires constant attention to make sure it stays straight.

"It wants to wander all the time," he said. "You could have a wreck with it if you don't keep your eyes on the road."

Smaller, less-expensive vehicles such as the 2009 and 2010 Corolla use electric-assist power steering. They are usually equipped with power steering systems that are aided by a small electric motor, a system known as electric-assist steering.

The motor essentially helps align the steering wheel with the movement of the tires. The system is cheaper to install than steering systems that rely on hydraulics.

Problems can arise if the motor is out of sync with the steering wheel, which could potentially cause the vehicle to wander without any turning of the wheel, he said.

"Car companies work on it a lot," said Jim De Clerck, a professor in the Michigan Technological University's mechanical engineering department and a former General Motors engineer. "It is a pretty well-known customer-satisfaction issue."

Toyota said the steering problem could be related to the braking system or tires. Improperly aligned tires, for example, can be a source of steering complications, De Clerck said.

In Washington, the House Oversight and Government Reform Committee asked several auto insurance companies for information on whether they reported incidents of sudden acceleration in Toyota vehicles to the NHTSA.

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Meanwhile, the House Energy and Commerce Committee moved its scheduled hearing up to Feb. 23, one day ahead of the Oversight Committee meeting. Toyota's Lentz and the head of the NHTSA, David Strickland, been invited to testify before the energy committee. A Senate hearing is planned for March 2.

Toyota is expected to send North America chief executive Yoshi Inaba to the hearings. Toyoda does plan a U.S. visit, mainly to speak with American workers and dealers, but he said details of his trip are not yet final.

The executives will face scrutiny in the U.S., where the Transportation Department has demanded documents related to its recalls. The department wants to know how long the automaker knew of safety defects before taking action.

Reports of deaths in the U.S. connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the alleged death toll reaching 34 since 2000, according to new consumer data gathered by the U.S. government.



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Sources: MSNBC, Toyota.com, Google Maps

Tuesday, February 16, 2010

Feds Demand Toyota Execs Release Recall Docs
























Feds: Toyota Must Turn Over Recall Documents


The Transportation Department demanded documents related to Toyota's massive recalls in the United States on Tuesday to find out if the automaker acted swiftly enough. Toyota, meanwhile, said it will idle production temporarily at Texas and Kentucky plants over concerns the recalls could lead to big stockpiles of unsold vehicles.

The legal documents demand that Toyota tell the government when and how the company learned of the safety defects in millions of vehicles over the entrapment of gas pedals by floor mats and sticky accelerators. The documents were delivered to Toyota on Tuesday and the company must respond within 30-to-60 days or face fines.

The intensifying government investigation of Toyota and production halts at its assembly plants represented another sign of the ripple effect the recall of 8.5 million vehicles has had on the world's No. 1 automaker. Toyota faces separate probes by the Obama administration and Congress as it struggles to maintain its loyal customer base and its reputation for safety and quality.

Toyota said it was halting production temporarily in San Antonio, Texas, and Georgetown, Ky., to address concerns that too many unsold vehicles may be building up at dealerships because of the large recalls.

Company spokesman Mike Goss said the Texas plant, which builds the Tundra pickup truck, would take production breaks for the weeks of March 15 and April 12. The Kentucky plant, which makes the Camry, Avalon and Venza vehicles, plans to take a non-production day on Feb. 26 and may not build vehicles on three more days in March and April.

Toyota employs 1,850 workers at the San Antonio plant and about 6,850 at the Georgetown facility.

In late January, Toyota halted production of recalled brands throughout the United States for about a week.

The information requests from the government, similar to a subpoena, follows criticism from consumer groups that the Transportation Department was too soft on automakers and failed to fine the companies or seek detailed information from them through subpoena powers.

Transportation Secretary Ray LaHood has defended his department's handling of the Toyota investigation, calling the Japanese automaker "a little safety deaf" about the safety problems. LaHood said the government urged Toyota to issue recalls and sent federal safety officials to Japan to warn company officials of the seriousness of the problems.

Under Federal Law, automakers must notify the DOT's National Highway Traffic Safety Administration within five days of determining that a safety defect exists and promptly conduct a recall.

Government investigators are looking into whether Toyota discovered the problems during pre-production or post-production of the affected vehicles, whether their recalls covered all affected vehicles and whether the company learned of the problems through consumer complaints or internal tests.

Federal officials are focusing on the two major issues behind the recalls -- gas pedals that can become lodged on floor mats and pedal systems that are "sticky," making it harder for drivers to press on the pedal or ease up on the gas.

The information requests seek detailed timelines on when Toyota first became aware of the problems, how they handled complaints, how much they have paid out in warranty claims over pedal problems, internal communications about pedals and company officials involved in making decisions about the issue.

NHTSA also wants to know how seriously Toyota considered the possibility that electronics of the gas pedal system may play a role. The company has said tests show that the electronics were not to blame. But federal safety officials want to know how Toyota dealt with complaints that might not be related to floor mats or sticking pedals.

Kathleen DeMeter, the director of NHTSA's Office of Defects Investigation Enforcement, wrote that the agency was "seeking to determine whether Toyota viewed the underlying defects too narrowly...without fully considering the broader issue of unintended acceleration and any associated safety-related defects that warrant recalls."


Sources: MSNBC

Wednesday, February 10, 2010

Toyota's New PR Nightmare: Lawsuits & Declining Stock





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Toyota's Next Problem: Lawsuits


Fixing millions of gas pedals and brakes and convincing customers their vehicles are safe could end up being the least of Toyota's challenges. Some experts think the price tag from legal settlements could end up topping the company's estimate of $2 billion in recall costs.

There are already more than 30 U.S. lawsuits filed against Toyota involving the problems with its gas pedals alone, according to Craig Hutson, senior investment grade analyst at Gimme Credit, a bond research service firm. And there are more lawsuits are in the works.

"Lawyers are champing at the bit to get at these guys, and the company has come out and largely admitted mistakes in respect to these issues," said Hutson. "It's hard to put a dollar amount on it, but multi-billion dollar costs are not out of the realm of possibility."

Hutson isn't alone in worrying about how much lawsuits could hurt Toyota. Credit rating agency Moody's cited the litigation risks when it warned Tuesday that it might downgrade Toyota's credit ratings.

The company also faces at least one class action suit involving problems with the brakes on 2010 models of the Prius and other hybrid vehicles. Toyota announced a recall for those hybrids Tuesday.

New reports of problems with the steering of its Corolla could mean more lawsuits against Toyota.

Safety experts estimate official complaints involving Toyota gas pedals show there have been 19 fatalities involving the recalled vehicles.

But Gary Robb, an attorney in Kansas City who is looking at filing cases, says he believes that number will increase significantly as people look more deeply into accidents for which no cause was ever determined.

"We've had so many calls from so many people now that this news has come out," he said. "Accidents that were heretofore attributed to driver error are very likely due to a malfunction of the gas pedal. There's going to be dozens of those incidents arising."

Cases involving death or serious injury will likely be handled in individual lawsuits.

Suing to reclaim lost value.

Robb said he's also looking at a class action case to try to recover billions of dollars he claims were lost in the resale value of the recalled vehicles. He said his experts estimate total losses could be in the $6 billion to $8 billion range. "For many people their car is their second largest investment," he said.

Other experts suggest that the loss in resale value is not as high as Robb's figure, but that it is still likely in the billions.

Toyota's troubles: How it got here

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Kelley Blue Book, a leading used-car value service, is lowering its estimated prices for the recalled models this Friday by 2.5% to 3.5%. That's enough to lower the value of each vehicle by between $250 and $800.

The National Highway Transportation Safety Administration estimates that more than 6 million U.S. vehicles are affected by the recall. So based on Kelley Blue Book's estimates, the overall loss in resale value is likely to be at least $2 billion.

Toyota wouldn't comment on its legal exposure from the recalls. As to the reduction in resale value by Kelley Blue Book it said, "Historically Toyota and Lexus vehicles have held their value very well relative to other vehicles. We expect that to be true in the future as well."

It's not clear whether courts will allow plaintiffs to collect that much money. James Henderson, a law professor at Cornell University, said legal precedent is against them.

But Henderson does think the recall opens Toyota for a rash of new personal injury cases. He added that if it is determined that Toyota knew of problems with the gas pedals and did not warn a driver involved in an accident, the company could be hit with punitive damages.

Hutson said beyond the cost of any jury verdicts or settlements, the lawsuits have the potential of causing continued damage to Toyota's reputation, keeping the problems and company's failures in the news. That could cost the company additional sales going forward.

He said if any documents come out which prove Toyota engineers knew something needed to be fixed, it will be difficult for Toyota to ever regain consumers' trust.

"When your image is one that has been largely built on quality and dependability, you can't afford that kind of smoking gun," Hutson said.



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Sources: CNN, MSNBC, CNBC, DOT.gov, Google Maps

Tuesday, February 9, 2010

Toyota Recalls The Prius Too; Company No Longer #1




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Toyota Recalls Prius, Other Hybrids Worldwide



Toyota says it is recalling about 437,000 Prius and other hybrid vehicles worldwide to fix brake problems — the latest in a string of embarrassing safety lapses at the world's largest automaker.

"I don't see Toyota as an infallible company that never makes mistakes," President Akio Toyoda said at a news conference Tuesday. "We will face up to the facts and correct the problem, putting customers' safety and convenience first."

With the Prius announcement, the number of vehicles recalled globally by Toyota Motor Corp. has ballooned to 8.5 million, including for floor mats which can trap gas pedals and faulty gas pedals that are slow to return to the idle position. The 2010 Prius wasn't part of the earlier recalls.

There have been about 200 complaints in Japan and the U.S. about a delay when the brakes in the Prius were pressed in cold conditions and on some bumpy roads. The delay doesn't indicate a brake failure. The company says the problem can be fixed in 40 minutes with new software that oversees the controls of the antilock brakes.

"Let me assure everyone that we will redouble our commitment to quality as the lifeline of our company," Toyoda said.

U.S. Transportation Secretary Ray LaHood said in a statement Tuesday that Toyota's leaders have assured him they are taking safety concerns "very seriously." The statement said LaHood's agency will stay in constant communication with Toyota to hold the company to its promise.

A U.S. House hearing on Toyota's gas pedal recalls scheduled for Wednesday was postponed due to weather, aides told NBC News' Kelly O'Donnell.

Also, State Farm, the largest auto insurer in the U.S., said it alerted federal regulators late in 2007 about a rise in reports of unexpected acceleration in Toyota vehicles. Congressional investigators are looking into whether the government missed warning signs.

Toyota officials went to Japan's Transport Ministry earlier Tuesday to formally notify officials the company is recalling the 2010 Prius gas-electric hybrid — the world's top-selling hybrid car. The automaker is also recalling two other hybrid models in Japan, the Lexus HS250h sedan, sold in the U.S. and Japan, and the Sai, which is sold only in Japan.

The 223,000 cars being recalled in Japan include nearly 200,000 Priuses sold from April last year through Monday, according to papers the automaker filed with the ministry. The Prius is Japan's top-selling car.

In the U.S., Toyota will recall 133,000 Prius cars and 14,500 Lexus HS250h vehicles. Nearly 53,000 Priuses are also being recalled in Europe. Toyota is suspending production of the Sai and Lexus HS250h in Japan until the updated software for those models is ready.

If drivers experience a delayed reaction when depressing the brakes in any of these models, they should keep pressing, according to Toyota and the transport ministry.

The Prius repairs will start in Japan on Wednesday. U.S. owners will start receiving letters about the recall next week.

Toyoda, the president, has been criticized for being largely invisible during the two weeks after the company announced Jan. 21 the gas pedal recall in the U.S., Europe and China.

He apologized at his first public news conference last Friday, but was criticized by the Japanese media for failing to outline concrete steps to tackle the safety crisis and reassure customers.

In contrast to his halting English in response to questions from foreign reporters at last week's news conference, Toyoda seemed much better prepared Tuesday, reading from an English statement after doing so in Japanese.

"We will do everything in our power to regain the confidence of our customers," Toyoda said.

He said he planned to go to the U.S. soon to talk with American workers and dealers to bring the ranks together.

Analysts said fears of an even bigger consumer backlash prodded Toyota into recalling the Prius.

"If they hadn't done the recalls, their image would have suffered even more," said Ryoichi Saito, auto analyst at Mizuho Investors Securities in Tokyo.

The Japanese transport minister rapped Toyota as reacting too slowly, and said he was meeting U.S. Ambassador to Japan John Roos on Wednesday to exchange views about Toyota's recalls and make sure U.S.-Japan relations remained on good terms.

"The consideration for customers was lacking in Toyota," Seiji Maehara told reporters, after a meeting with Toyoda. "We hope this never happens again."

Toyoda, who visited the minister after his news conference, apologized and explained the recalls, Maehara said.

U.S. safety officials are investigating the brake problem.

It is suspected in four crashes resulting in two minor injuries, according to data gathered by the National Highway Traffic Safety Administration. Toyota says it's cooperating with NHTSA's investigation.

Also Tuesday, Toyota said it will voluntarily recall about 7,300 four-cylinder Camry sedans produced early in the 2010 model year because of a possible brake fluid leak. Dealers will inspect the cars for a power steering hose that could come in contact with a brake tube, causing a leak. The leak means it could take longer for the vehicle to stop, the company said. Owners will get letters starting in mid-February.

Problems with hybrid braking systems haven't been limited to Toyota.

Ford Motor Co. said last week it plans to fix 17,600 Mercury Milan and Ford Fusion gas-electric hybrids because of a software problem that can give drivers the impression that the brakes have failed. The automaker says the problem occurs in transition between two braking systems and at no time are drivers without brakes.

Toyota's plug-in hybrid is also being recalled in Japan, Europe and the U.S., but in small numbers because it is a largely experimental model for rental and government use.

The Prius holds a cherished spot in Toyota's vehicle lineup and is symbolic of its leadership in the "green" car market.

The Toyota executive overseeing quality, Shinichi Sasaki, said the delay that Prius drivers can feel when braking lasts for a fraction of a second as the antilock brakes kick in.

The problem happens only on snowy or bumpy surfaces, and the complaints did not become more numerous until winter, Sasaki said.

But Toyoda acknowledged the company could have done better in picking up on the complaints, managing the crisis and sending a message to car owners on a fix.

In the U.S., Toyota will add five more centers in addition to the current three that investigate customer complaints, Sasaki said.

"When compared to the size of Japan, America is so much bigger and so our network for gathering information was not enough," he said.

Toyota was one of the first companies to mass-market a hybrid that combines an electric motor with a gas engine, introducing the Prius in Japan in 1997. Its high gas mileage made it popular among environmentally conscious drivers, especially when gas prices spiked two years ago.

But the complexity of the Prius, a highly computerized car, has led to problems in the past. In 2005, the company repaired 75,000 of them to fix software glitches that caused the engine to stall. It has also had trouble with headlights going out.

Shares in Toyota rose 2.9 percent Tuesday to 3,375 yen, but are still down about 20 percent since Jan. 21, when it announced the gas pedal recall.



Sources: MSNBC