The last two weeks have seen an avalanche of negative headlines for Toyota. A sampling below:
- On February 23, 2010, Jim Lentz, Toyota’s President of U.S. Sales, admitted during questioning before the House Energy and Commerce Panel that it was “probably fair to say” that the company may not know the cause of unintended acceleration in as many as 70 percent of customer complaints.
- On February 24, 2010, Akio Toyoda–Toyota’s President and the grandson of the company’s founder–told the House Oversight and Government Committee that he didn’t learn about unintended acceleration problems in Toyota vehicles until late 2009, and claimed that he wasn’t aware of a July 2009 internal memo that bragged about $100 million in savings on recalls. The plausibility of his professed ignorance was called into question when Lentz testified before Congress that decisions about important safety issues like recalls were all made in Japan–an admission at odds with Toyota’s efforts to portray itself as a company solidly rooted in the U.S.
- On February 26, 2010, Bloomberg News reported that the same memo characterized Toyota’s success in blocking a formal recall of Sienna minivans as a “win” for the company. The problem with the Siennas involved collapsing liftgates that led to 98 reported injuries. Toyota persuaded the National Highway Traffic Safety Administration to close its investigation by sending a letter to Sienna owners offering to replace defective struts on the liftgate.
- On March 2, 2010, USA Today/Gallup released results of a survey that showed that 31% of Americans now believe Toyota and Lexus vehicles are unsafe to drive, and 55% believe the carmaker dragged its feet in responding to potential safety defects.
- Also on March 2, 2010, the New York Times reported that Camrys manufactured before 2007–which were not subject to Toyota’s recent recalls–were the subject of hundreds of unintended acceleration complaints. Toyota did not recall the pre-2007 Camrys because they use a different gas pedal and different floor mats than later models. However, the complaints about pre-2007 Camrys suggests that unintended acceleration may be caused by problems with the electronic throttle system and not defective gas pedals or floor mats.
- On March 3, 2010, the Associated Press reported that NHTSA continued to receive complaints of unintended acceleration from Toyota owners whose cars had been repaired. The continued problems suggest that unintended acceleration is caused by problems with the electronic throttle system, something Toyota has repeatedly denied. Toyota has attributed the problems to defective gas pedals and floor mats, and its fixes have focused on swapping out floor mats, replacing and modifying pedals and removing floor padding. NHTSA has asked Toyota owners who continue to experience unintended acceleration post-repairs to contact the agency.
- On February 24, 2010, the New York Times reported that Toyota is facing a revolt from its suppliers, who have been frustrated in recent years by Toyota’s efforts to squeeze prices despite rising production costs. The recall crisis has led the traditionally loyal suppliers to break rank and speak out against the company. The owner of one supplier, Teruo Moewaki, became a local celebrity by saying on television he would no longer accept orders from the embattled manufacturer.
