Toyota saved $100 million by persuading U.S. regulators to agree to a cheap fix

Article by Christian Andrei, on August 25, 2010

As Toyota President Akio Toyoda is headed to a congressional hearing to give his testimony on the series of recalls the company has been deluged with, he faces another setback. A document had emerged stating that Toyota Motor Corp. saved money by agreeing to a cheap fix for the defect.

This document says that Toyota saved over $100 million by convincing US regulators to conclude a 2007 investigation of unintended acceleration complaints with a floor mat recall.

The 2009 internal document given to lawmakers and made available Sunday is proof of Toyota's Washington staff's announcement of the amount of savings it had gotten due to the move.

Toyota had stated last Sunday that it was conducting a thorough review of its operations. It said that its first priority remains to be the safety of its customers and that it would be a mistake to base one's judgment on this single document.

Spokeswoman Olivia Alair of the Department of Transportation said in an e-mail that the document put to light the carmaker's slow response to its safety issues. She further described the document to be "very telling."

The document appears to add credence to criticism that Toyota missed or ignored complaints about sudden acceleration in its vehicles and that U.S. safety regulators weren't tough enough. This development seriously dents Toyoda's efforts to contain this safety crisis.

In the past few months, Toyota has issued the recall of more than 8.5 million cars for various problems, including: sticky accelerators, accelerators that can be pinned down by loose floor mats and a braking glitch affecting hybrid models. Deaths associated with this recall include five linked to floor mats and 29 related to unintended acceleration.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries