Gas Prices Irk Southern Voters; High Speed Rail Badly Needed In The South!

In 2011 the GOP's Political Gimmick was "The Federal Deficit".

In 2012 its "Gas Prices".

Did you know that for decades the Federal Gov't has been paying Big Oil Companies Billions Annually in Tax Payer Money just to keep Gas Prices low?

So in essence We (Tax Payers) are paying these Blood Suckers NOT to charge us $50 & $60. a Gallon versus $2.00, $3.00 & $4.00 a Gallon.

WOW!

Which States use more Oil & Gas?

Southern States!

Which States Oppose Pres. Obama's Nationwide High Speed Rail Plans?

Southern States!

Its time to Eliminate those Federal Subsidies, Build High Speed Rail in the Southern States & Stop Depending on Foreign Oil.





Price of Gas Matters to Voters, but Doesn’t Seem to Sway Votes


Stacy Hawks is angry that the rising price of gasoline is squeezing the profits of her father’s produce company and draining the wallets of friends who drive trucks. She is angry that the government has not acted to reverse the trend.

But Ms. Hawks, 26, a North Carolina resident who describes herself as very conservative, said she does not expect the price of gas to influence her vote in November.

“What I look for in a candidate is whether or not they have experience, values, morals,” said Ms. Hawks. “Mostly, I want someone that I trust as a leader.”

There may be no number stamped more frequently on the American landscape than the price of gas. And as the average price has climbed toward $4 a gallon nationwide, it has generated abundant chatter about the threat to the economic recovery, and to incumbent politicians.

Republicans have seized on the issue to attack President Obama’s management of the economy. The president has responded with speeches defending his energy policies, including increased domestic oil production.

But there is surprisingly little evidence that gas prices deserve an outsize reputation for economic and political influence.

Studies suggest that most voters agree with Ms. Hawks: they are angry about gas prices, but other factors, like the economy and the personal qualities of candidates, ultimately determine their votes.

Gas prices influence voters indirectly, because rising prices can slow the pace of growth. But the influence is modest, because spending on oil and its derivatives makes up only a small part of the nation’s economic activity. Gas purchases account for less than 4 percent of household spending. Prices would need to increase by at least 28 percent to lift that share by a single percentage point. So far this year, they have jumped by 15 percent.

“Presidential elections are based on evaluations of presidential performance and on the performance of the economy. You can’t reduce that to one small issue,” said Alan Abramowitz, a professor of political science at Emory University. “Are gas prices part of the equation that people think about? They probably are, but only a small piece.”

Rising gas prices also make Americans less confident in the nation’s economic prospects and less approving of political leaders, according to public opinion surveys. But these, too, are small effects. One study by a political scientist estimated that the impact of changes in unemployment was 27 times greater than the impact of equivalent changes in gas prices.

In part, the difference is that Americans are divided as to whether politicians should be held responsible.

Donald J. Wheeler, a ball bearing tester from Springfield, Ohio, said people blamed the president because it was the easiest thing to do. “It’s ridiculous,” he said. “In my opinion, it’s the companies that are gouging people.”

Brian Gregory, who delivers auto parts in northern Virginia, spends about $60 most weekdays filling his station wagon. He said that he blamed Mr. Obama for failing to control prices and that the issue was a major reason he planned to vote “either for a Republican or not at all.”

“I don’t understand health care as well as I should,” he said. “Housing, I’m kind of vague on that. But this I can definitely understand.”

Gas prices exert an unrivaled hold on the public imagination. Americans spend more on gas than on almost any other single good, and the exact amount is hard to miss as the numbers spin by on the pump. It hurts to watch, but there is also little choice. People can substitute chicken for steak, but they still need to drive the same distance to work.

When prices rise, people wait to buy cars; they travel less; they buy fewer lottery tickets and spend less on child care, according to a study by Paul Edelstein and Lutz Kilian, economics professors at the University of Michigan.

Michael Wills has stopped driving weekly from his home in Fairfax, Va., to his father’s home in North Beach, Md., a distance of 50 miles. Mr. Wills, 56, said he had seen his father only a few times in recent months.

Amy Rivera, 24, of Orlando, said she shorted her electric bill last month to make sure she had enough money for gas.

And Pat Rosenbeck, 57, a restaurant owner from Franklin, Ohio, said the flow of customers had slowed as gas climbed above $3 a gallon.

The impact on happiness is even larger than the changes in spending, according to a 2010 study by researchers at the Brookings Institution, in part because people do not like uncertainty, and they do not know how high prices will climb.

Republican primary voters overwhelmingly cite gas prices as an important issue. But voters’ views of a president are influenced by a wide range of issues.

Rising gas prices sometimes track declines in presidential approval ratings. Gallup reported that President George W. Bush’s ratings fell to 48 percent at the end of October 2004, just before Election Day, from 60 percent in January. The price of a gallon of regular gas climbed 27 percent over the same period.

But gas prices often move out of sync with approval ratings, too. President Bill Clinton’s ratings rose to 54 percent just before Election Day from 42 percent in early January 1996, even as the price of gas climbed 13 percent.

Since 1976, a 30-cent increase in gas prices over a three-month period has corresponded to a reduction of two percentage points in a president’s approval rating if other economic factors are held constant, according to an analysis by John Sides, a professor of political science at George Washington University.

That kind of movement has not been sufficient to affect the outcome of a presidential election, he said. “I think of the information flow that takes place during a presidential campaign as a big, wide Mississippi River, and gas prices are a tributary that flows into that river,” Professor Sides said. “It’s hard for one number, even if it’s staring you in the face while you’re pumping gas, to burn through all the other information that’s out there about the economy and the candidate.”

A key implication, however, is that gas prices could make a difference if the movements were large enough and the race was close enough.

A 2011 study of the impact of economic conditions on regional voting patterns found that the spike in gas prices in the summer of 2008 did give a small boost to Mr. Obama. Independent voters in areas where prices climbed highest reported a significantly more negative view of the health of the economy and were less likely to vote for incumbents.

James Gimpel, a professor of government and politics at the University of Maryland who was a co-author of the study, said the increased volatility of gas prices was raising its importance in elections. “It may well be that this is an emerging factor that we’ll have to consider,” he said. “But if I can rely on that old social sciences copout, we need more evidence.”


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Sources: MSNBC, NY Times, WRAL, Youtube, Google Maps

Obama Signs Short Term FAA Agreement; GOP Rejected Long Term Deal

The Impasse Over Putting FAA Employees Back To Work Has Ended Temporarily. Today Pres. Obama Signed A Bill Allowing FAA Employees To Continue Working Until Sept. 16th. What A Shame Those Tea Party Kooks Have High Jacked Our Federal Government Like This! VOTE OBAMA IN 2012 & REHIRE PELOSI!




Obama signs bill ending partial FAA shutdown

President Barack Obama signed legislation Friday temporarily restoring full funding to the Federal Aviation Administration, breaking a political impasse and allowing roughly 4,000 furloughed federal employees to return to work.

The measure also promises to restore tens of thousands of jobs in the construction industry and elsewhere tied to airport improvement projects put on hold as a result of the funding shortfall.

The bill took less than one minute to pass a nearly empty Senate chamber Friday morning. It was cleared with a legislative maneuver known as "unanimous consent," which allows as few as two senators to approve a bill so long as no objections are filed. Most members of Congress are currently away from Washington on their summer recess.

The president hailed the agreement, noting that it removed "the uncertainty hanging over the jobs of thousands of hardworking FAA employees."

"This impasse was an unnecessary strain on local economies across the country at a time when we can't allow politics to get in the way of our economic recovery," Obama said Friday. "I'm glad that this stalemate has finally been resolved."

The political differences that led to the funding shortfall, however, have not been resolved. Democrats and Republicans are still at sharp odds over whether to continue providing subsidies to smaller rural airports. The two parties also differ over whether to make it easier for airline employees to unionize.

Congress will have to revisit the issue within six weeks to avoid another lapse in funding.

Outrage over Congress's decision to adjourn for the summer without providing adequate funding for the approximately 4,000 employees contributed to the push for at least a short-term resolution. Transportation Secretary Ray LaHood repeatedly took to the airwaves over the past several days, cajoling lawmakers to come back from their break and reach an agreement.

For workers facing the possibility of lost wages for weeks to come, news of the breakthrough evoked an emotional response. Evelyn Martinez, an FAA inspector, cried when she learned of the deal.

The tears are "out of relief," Martinez said, adding that while her post-graduate education taught her how government works, "what we are experiencing is outside of any textbook."

"This is a tremendous victory for American workers everywhere," LaHood said in a statement Thursday. "From construction workers to our FAA employees, they will have the security of knowing they are going to go back to work and get a paycheck -- and that's what we've been fighting for."

Since authorization for FAA funding expired in late July, the agency has also been unable to collect federal taxes on airline tickets -- leading to a revenue loss of approximately $30 million a day. If the dispute had continued until Congress returned in September, the federal government would have lost over $1 billion in revenue.

Senate Majority Leader Harry Reid, D-Nevada, had been in talks this week with House Speaker John Boehner, R-Ohio, and administration officials about how to resolve the funding impasse, a Senate Democratic leadership aide told CNN.

Reid noted Thursday that the agreement "does not resolve the important differences that still remain."

"But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that," he said.

The agreement is the 21st short-term funding extension for the FAA. The Republican-led House previously passed a short-term extension, but it included a number of changes opposed in the Democratic-controlled Senate.

One of the changes involves language in the House bill that would reduce or kill subsidies to rural airports, specifically targeting some in Nevada, Montana and New Mexico -- three states with influential Democratic senators.

The Senate ultimately agreed to pass the House bill, but as part of Thursday's agreement, LaHood will notify congressional leaders that he has the authority to grant waivers to affected community airports, which would exempt them from the subsidy cuts.

While no specific exemptions are required, LaHood's authority gives Democrats the assurance that the disputed language they opposed can be overridden, the leadership aide noted.

A larger dispute regarding the unionization of airline workers has not been addressed at all, however.

Republicans are livid over a recent ruling by the National Mediation Board that makes passage of a vote to unionize dependent only on getting more than 50% support from those actually voting. For example, if a company has 1,000 workers but only 200 take part in the vote to unionize, the rule change would mean only 101 "yes" votes were needed for it to pass.

Under old rules, more than 50% of all workers eligible to vote -- or in this example 501 "yes" votes -- would have been required for it to pass. Workers who didn't cast ballots were counted as having voted "no," making it more difficult for supporters to succeed.

It remains unclear what -- if anything -- the divided Congress will ultimately do in response to the change.

Sources: CNN

Boehner & Obama Negotiate Ending FAA Impasse: Should Obama Trust Him?

Obama, Boehner discuss ways to break FAA funding stalemate

President Barack Obama called House Speaker John Boehner to discuss ways to break the current political stalemate over funding for the Federal Aviation Administration, White House Press Secretary Jay Carney said Thursday.

"Conversations continue as we look for ways to resolve this," Carney told reporters. "We hope a solution can be found." The president's call to the speaker occurred Wednesday, he said.

The impasse has resulted in the furlough of roughly 4,000 aviation workers, as well as tens of thousands of additional layoffs in the construction industry and elsewhere.

The FAA has also been unable to collect federal taxes on airline tickets -- leading to a revenue loss of approximately $30 million a day. If the dispute continues until Congress returns from its summer recess in September, the federal government will be out more than $1 billion in revenue.

Transportation Secretary Ray LaHood has been urging members of Congress to return to Washington from their summer break and, at a minimum, pass a temporary funding measure allowing the FAA and other workers to return to their jobs.

"They talk a lot about jobs. They give good speeches about it. I want them to walk the walk," LaHood told CNN Thursday.

"Put hard-working Americans to work so they can get a paycheck just like Congress is receiving on their vacations."

The Democratic-led Senate went on its summer recess Tuesday without approving what would have been the 21st short-term funding extension for the FAA. The Republican-led House previously passed a short-term extension, but included some changes opposed by Democrats.

The dispute over the extension involves language in the House proposal that would reduce or kill subsidies to rural airports, specifically targeting some in Nevada, Montana and New Mexico -- three states with influential Democratic senators.

A larger dispute behind the scenes also is a cause for the inaction. Republicans oppose a recent National Mediation Board decision backed by Democrats that makes it easier for airline employees to unionize.

The board's ruling made passage of a vote to unionize dependent on getting more than 50% support of those voting. For example, if a company has 1,000 workers but only 200 take part in the vote to unionize, the rule change would require 101 "yes" votes for it to pass.

Under old rules, more than 50 percent of all workers eligible to vote -- or 501 "yes" votes -- would have been required for it to pass. Workers who didn't cast ballots were counted as having voted "no," making it more difficult for supporters to succeed.

Sen. Orrin Hatch, R-Utah, told CNN Wednesday he blocked a short-term compromise bid proposed by Democratic and Republican colleagues because of the organized labor issue.

At a news conference Wednesday, top Senate Democrats blamed Republicans for the work stoppage.

"This issue has nothing to do with essential air services (at rural airports) and everything to do with a labor dispute between airlines and the American worker," said Senate Majority Leader Harry Reid, D-Nevada.

In response, Rep. John Mica, the Florida Republican who chairs the House Transportation Committee, said Senate Democrats have only themselves to blame.

"Senate Democrats had a House-passed FAA extension before them for two weeks but chose to do nothing," Mica said.

But LaHood said controversial items didn't stop lawmakers from passing extensions on other occasions.

"If you've got issues with labor, if you've got issues with money going to small airports to help airlines fly in and out, work that out," he said. "Don't hold the American jobs and American people hostage over controversial issues that were not a problem on 20 other times when Congress passed an extension."

As the dispute drags on, numerous FAA employees are being forced to dig into personal savings, prioritize their bills, and cut back on expenses in order to avoid financial devastation.

"We're pretty much going to burn through all of our savings within a month and ... now we're working on programs out there to give us no-interest loans," said Mark DePlasco, one of the furloughed employees.

"I don't think any of us can even fathom going without a paycheck for another month and a half or even longer."


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Sources: CNN, Wikipedia, Google Maps

GOP's 2012 Jobs Strategy? Kill Jobs Via Fake Debt Crisis & Union Busting

White House explores options on FAA shutdown

The White House said on Wednesday it was looking at ways to end a partial shutdown of the Federal Aviation Administration that has halted airport construction projects employing thousands of people and extended the summer's political battles.

But transportation experts said the Obama administration has little room to maneuver, and instead officials pressured Congress for emergency action to break a deadlock that has held up full funding of the FAA for 12 days so far.



Obama said he had called key congressional leaders and a White House official confirmed one call was to House Speaker John Boehner.

"I'm urging them to get this done," Obama said in remarks before a Cabinet meeting.

It was unclear whether Obama's discussions had any impact on the partisan standoff mainly over demands by the Republican-led House that Congress cut certain heavy subsidies for airlines that operate flights to under served rural areas.



Obama spokesman Jay Carney told reporters that the White House was looking at steps that it could take to end the shutdown affecting more than 74,000 airport-related construction jobs and certain FAA personnel.

Lawmakers left town this week for their summer recess with the matter in limbo and are not due back until early September. The Obama administration said, however, that certain procedures would permit emergency action without bringing lawmakers back to Washington.

Transportation Secretary Ray LaHood, a former Republican congressman, said such action was not likely although he did not dismiss it entirely.

"They can still do it," LaHood said.

The shutdown has added to acrimony that has defined Washington during the summer's political brawl over raising the U.S. debt ceiling.



Reid, in a letter to Boehner, said there was room for compromise on the FAA later but that it was "not honorable for the House" to attach the subsidy rider to what otherwise was a routine funding extension. Similar short-term budget extensions for the FAA had passed 20 times previously.

Boehner said in a statement that the House had "done its job" and the burden was on the Senate to act.

The administration's hands were mostly tied over the funding quagmire, and would find it difficult to take the kind of money at stake in the shutdown -- $360 million so far -- from one agency budget source and apply it to FAA airport construction.

Further angering Obama and his administration is the decision by airlines to capitalize on the congressional inaction to legally not collect ticket taxes, and raise fares by a commensurate amount.

The windfall totaled more than $360 million so far and could top $1.2 billion if the standoff lasts until Congress returns in September.

"And we don't anticipate it's going to be easy to get that money back," Obama said, "Even though the airlines are collecting it, they're keeping it."

The trade group representing Delta Air Lines (DAL.N), United Airlines (UAL.N), US Airways (LCC.N) and Southwest Airlines (LUV.N) say carriers are justified in boosting revenue to try to cover costs, which they cannot do now.


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Sources: AP, Fox News, MSNBC, Reuters, Wikipedia, Youtube, Google Maps

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

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

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

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