Here’s another chapter in what’s been a “Perfect Storm” of a year for Toyota.
Monday the automaker halted the sales of 2009-2010 Lexus LS 460 and LS 600h sedans, which have an electrical glitch that can make their steering wheels go out of alignment. http://www.latimes.com/business/la-fi-lexus-recall-20100525,0,6644368.story
The move came just days after Toyota recalled 11,500 of those same vehicles. Friday’s recall involved roughly 4,000 of the LS 460 and LS 600h cars in the United States.
http://pressroom.toyota.com/pr/tms/lexus/toyota-announces-voluntary-recall-159059.aspx
In a press release Friday, Toyota said the recall was related to the vehicles’ Variable Gear Ratio Steering (VGRS) and the need “to address a temporary steering wheel off-center condition that may develop under a specific driving maneuver.”
Toyota Forks Over $16.4 Million Fine To Transportation Department
Toyota last week up anted up and paid the Transportation Department a $16.4 million civl fine, the biggest penalty permitted under the law, over the recall of more than 2 million cars whose accelerator pendals were sticking, according to The New York Times. http://www.nytimes.com/2010/05/19/business/19toyota.html?scp=1&sq=Toyota%20pays%20fines&st=cse
The money will go into the U.S. Treasury’s Fund.
Back in April Transportation Secretary Ray LaHood announced the fine against Toyota for failing to immediately notify the government when the automaker learned it was having similar accelerator problems with its cars in other countries.
Toyota had said it would pay the fine, without admitting any guilt in the matter.
The multi-million dollar fine was the largest ever brought against an automaker by the government.
Since last fall Toyota has recalled 9 millions vehicles around the world, with 6 million of them in the United States.
The company faces hundreds of lawsuits stemming from the sudden acceleration of its vehicles, such as the Camry.
Judge Handling Toyota Suits Still Needs To Pick Lead Attorneys
A U.S. District Court judge Thursday held the first official hearing on 75 consolidated lawsuits stemming from the sudden acceleration of Toyota vehicles. http://online.wsj.com/article/SB10001424052748704635204575242590535122412.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
Judge James Selna, sitting in Santa Ana, Calif., conceded that resolving the dozens of cases is daunting, but he added that it was a “doable task,” according to The Wall Street Journal.
One of the matters Selna will have to decide is which of the roughly 100 plaintiffs attorneys will take a lead role in the litigation. Those lawyers will share in an estimated $500 million in legal fees stemming from the cases, which make Toyota potentially liable for billions of dollars in damages.
The lawyers for Toyota recommended that the lawsuits be divided up depending on what the plaintiff alleges caused the sudden, and sometimes deadly, acceleration of the vehicles. Such reasons would include gas pedals getting stuck on mats and electronic bugs.
The judge was also warned that the court might have as evidence Japanese engineering documents that will be hard to translate into English.
So far Toyota has recalled 8 million vehicles around the world after the acceleration problem surfaced.
Selna didn’t make any decisions Thursday. On Wednesday, the judge surprised lawyers when he issued an order saying that he planned to the number of lawyers in key roles, according to The Journal.
The judge set the next hearings for May 28 and June 25.
Toyota’s Latest Recall Is For Its 2003 Sequoia SUV, Over Stability Control System
Toyota has issued a second recall stemming from stability problems with its sports utility vehicles, this one for its 2003 Sequoias. http://pressroom.toyota.com/pr/tms/toyota/toyota-announces-voluntary-recall-157593.aspx
Wednesday’s recall of 50,000 Sequoias follows in the wake of last week’s recall and halt of sales of the 2010 Lexus GX 460. Toyota took action on the GX 460 after Consumer Reports deemed that SUV unsafe because of issues with its vehicle stability control system.
In Toyota’s Wednesday announcement, the automaker said it needed to upgrade the program logic in the vehicle stability control system in the Sequoia.
Since November Toyota has recalled more than 9 million vehicles, an action mainly prompted by accelerator pedals sticking on several of its models, including the popular Camry. http://www.nytimes.com/2010/04/29/business/29toyota.html?scp=1&sq=Sequoia&st=Search
The issues with the SUVs is the vehicle stability control system, which helps control a loss of traction in on the front or rear tire as a car turns a corner.
“In vehicles without the upgrade, the stability control system could, in limited situations, activate at low speed (about 9 mph) for a few seconds after acceleration from a stopped position and, as a result, the vehicle may not accelerate as quickly as the driver expects,” Toyota said in Wednesday’s announcement. “There have been no reported injuries or accidents as a result of this condition.
Toyota instituted a running production change during the 2003 model year, and since that time, Toyota has been responding to individual owner concerns by replacing the Skid Control Engine Control Unit in Sequoias impacted by this condition. Of the roughly 50,000 vehicles included in this recall, about half have already been serviced under warranty.
Starting in late May, Toyota will begin mailing letters to all 2003 Model-Year Sequoia owners included in this recall, including owners of vehicles that have been previously serviced. http://pressroom.toyota.com/pr/tms/lexus/update-for-gx-460-recall-now-available-157680.aspx
On Thursday Toyota said that its software update for the 2010 GX 460 was available at Lexus dealerships, and that it was resuming sales of the SUV.
“We are confident that the update will make the performance of the GX even better for our customers,” Mark Templin, Lexus Group Vice President and general manager, said in a prepared statement.
Toyota Issues Yet Another Vehicle Recall, This One For Lexus GX 460
Another day, another Toyota recall.
Toyota Monday recalled its Lexus GX 460, just a week after Consumer Reports magazine deemed the luxury SUV unsafe. The automaker will be fixing a problem with the SUV’s stability control system. http://www.nytimes.com/2010/04/21/business/global/21iht-toyota.html?ref=business
The recall involves 9,400 2010 Model Year Lexus GX 460 to update software in the SUV’s Vehicle Stability Control (VSC) system. http://pressroom.toyota.com/pr/tms/lexus/toyota-announces-voluntary-recall-157109.aspx
The VSC system helps control a loss of traction in turns as a result of front or rear-wheel slippage during cornering.
The Lexus GX 460 is the second Toyota recall in a week. Last Friday, it recalled its 600,000 Sienna minivans because of a problem with the vehicle’s spare tire carrier cable.
Counting its prior recalls of Camrys for defective accelerator pedals, Toyota has recalled more than 9 million vehicles since November, according to The New York Times.
Toyota issued a press release Monday on the voluntary recall of the Lexus GX 460.
“Since it was launched more than 20 years ago, Lexus has built its reputation on customer respect and concern for safety,” Mark Templin, Lexus Group vice president and general manager, said in a statement. “With the news from Consumer Reports that our 2010 GX 460 did not pass its ‘Throttle Lift-Off’ test, we immediately stopped selling the vehicle and commenced vigorous testing to identify and correct the issue.” http://pressroom.toyota.com/pr/tms/lexus/lexus-announces-plans-to-recall-157111.aspx
Describing the recall, Templin said, “We have developed a remedy that will be quickly implemented to help address customer concerns….We will begin implementing this program in the next two weeks and our dealers will be reaching out to customers shortly to set up appointments to make this modification.
Lexus dealers will have the VSC software update by the end of April. The updates should take about an hour for dealers to install.
Starting in early May, Lexus will begin mailing letters to GX 460 owners included in the recall. Lexus will provide a courtesy vehicle to anyone who has purchased a 2010 GX 460 and has concerns about driving it until the recall work has been completed.
Toyota made the announcement about its latest vehicle recall the same day it said that it would pay a $16.4 million fine, the largest government fine ever against an automaker, for hiding information about its sticking accelerator pedals.
Toyota Agrees To Pay $16.4 Million Fine For Hiding Safety Issues
Toyota has agreed to fork over $16.4 million to pay a fine, the largest government sanction against an automaker ever, for hiding information regarding its sudden-acceleration recall, federal officials said Monday. http://www.nytimes.com/2010/04/20/business/global/20toyota.html?hpw
U.S. Transportation Secretary Ray LaHood announced the news about Toyota, which has not admitted any wrongdoing. But the automaker merely paying the fine levied by the National Highway Traffic Safety Administration doesn’t clear Toyota if any civil or criminal actions, according to The New York Times.
The $16.4 million fine is the largest permitted under the law.
Toyota released its own statement Monday. http://pressroom.toyota.com/pr/tms/toyota-motor-corporation-agrees-157093.aspx
“We agreed to this settlement in order to avoid a protracted dispute and possible litigation, as well as to allow us to move forward fully-focused on the steps to strengthen our quality assurance operations,” the automaker said.
“This will allow us to focus on delivering safe, reliable, high quality vehicles for our customers and responding to consumer feedback with honesty and integrity,” the statement said. “These have been core Toyota values for 70 years, and we pledge to make an even greater effort to adhere to this philosophy now and in the future. We also welcome a new, more transparent chapter in our relationship with NHTSA, consistent with our commitments to Congress and the American people.”
In a case of we-think-he-doeth-protest-too-much, Toyota went on.
”We regret that NHTSA tentatively concluded that they should seek a civil penalty. Toyota denies NHTSA’s allegation that it violated the Safety Act or its implementing regulations,” Toyota said in its statement.
“We believe we made a good faith effort to investigate this condition and develop an appropriate counter-measure. We have acknowledged that we could have done a better job of sharing relevant information within our global operations and outside the company, but we did not try to hide a defect to avoid dealing with a safety problem.
Both the U.S. Department of Justice and the Securities and Exchange Commission are investigating Toyota over the sudden-acceleration recall
Toyota knew about the acceleration problem and defective gas pedals for several months before ordering a recall in January.
Toyota’s problems seem endless. Last Friday the company halted sales of its Lexus GX 460 after Consumer Reports magazine deemed the vehicle unsafe.
And the automaker Friday said it would recall 600,000 Sienna minivans regarding a problem with a cable that holds a spare tire.
Toyota Stalled In Recall of U.S. Vehicles, Documents Say
Toyota’s public relations nightmare continued Monday, as stories broke about the car maker delaying its recall of vehicles in the United States, even after the company had knowledge of sudden-acceleration problems that allegedly lead to dozens of deaths.
Various news outlets, including the Associated Press and The New York Times on Page One, cited internal Toyota documents that became public last week.
In one particularly damning comment, one Toyota official in January told his colleagues that he had to break some bad news, namely that some of the company’s car models “have a tendency for mechanical failure in accelerator pedals.” http://www.nytimes.com/2010/04/12/business/12gap.html?hp
The message went on to say, “The time to hide on this one is over. We need to come clean.”
But there was a lag, three days later, before Toyota finally folded to public pressure and recalled millions of vehicle.
Basically, the documents show that Toyota stalled in taking any action to remedy the acceleration problem, and that it even took steps quicker in Europe and Canada than it did in the United States.
Last week the federal transportation authority announced that it was fining Toyota the stiffest penalty allowed, $16.4 million, over the recall related to the sticking accelerators.
Several days after that last week, federal safety officials warned Toyota that they might impose a second penalty against the car maker. That fine would stem from Toyota’s handling of the recall of 2.3 million cars and trucks with accelerator pedals that could get stuck. http://www.latimes.com/business/la-fi-toyota-fine10-2010apr10,0,1294645.story
$16.4 Million Fine Against Toyota Seems Far Too Puny
The U.S. Transportation Department’s decision to fine Toyota $16.4 million, the largest penalty permitted, made front page news in a number of newspapers Tuesday, including The New York Times http://www.nytimes.com/2010/04/06/business/06toyota.html?ref=todayspaper
and The Washington Post.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/05/AR2010040503200.html
We understand that the government, namely the transportation department and the National Highway Traffic Safety Administration (NHTSA), legally could not impose a stiffer fine. But it seems like a pretty tiny snap on the wrist to only penalize an auto giant like Toyota that amount. Its crumbs to a company like Toyota, over the foolish handling of a fatal problem that has lead to dozens of deaths and the recall of millions of vehicles.
And we’re not the only ones to think that.
Safety Research and Strategies (SRS) agreed with our “slap-in-the-wrist” assessment, but added “we’re glad to see any government agency get back their regulatory mojo after eight moribund years of the Bush administration.” http://www.safetyresearch.net/2010/04/06/16-4-million-reasons-why-it-ain%E2%80%99t-over-yet-for-toyota-sua/
The government levied the penalty against Toyota for not promptly notifying government safety officials about mishaps involving it cars’ accelerator pedals. That problem has allegedly led to the sudden accelerations of cars, allegedly causing accidents that have killed dozens of people and prompted several hundred lawsuits.
“We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a prepared statement. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.”
SRS raised some questions of its own.
“People need to remember: as NHTSA and Toyota have both acknowledged, sticking accelerator pedals have nothing to do with Sudden Unintended Acceleration,” SRS president Sean Kane said on the group’s Web site. “In fact, owners have complained to NHTSA about experiencing SUA incidents after getting the sticky accelerator pedal recall fix.”
The SRA also had this to say about the fine, which Toyota has two weeks to contest.
“We’re also very interested in seeing if NHTSA will take Toyota back to the woodshed for failing to initiate its floor mat recall in a timely fashion,” the SRS said on its site. “But let’s keep our eyes on the prize, folks: we need Toyota to identify the other root causes that can’t be explained by floor mats and driver error. Punishing Toyota doesn’t do much to resolve the financial woes and real safety concerns of drivers who are stuck with these vehicles.”
Regulators Bring In NASA Scientists For Toyota Probe
Pulling out all the stops in their probe, auto-safety regulators will literally turn to help from rocket scientists to study what’s caused the sudden, and deadly, acceleration of Toyota cars. http://news.yahoo.com/s/nm/20100330/bs_nm/us_toyota;_ylt=Avj2ZyGXDibrcZycWm8RhC9h24cA;_ylu=X3oDMTJ1ajNmY2JtBGFzc2V0A25tLzIwMTAwMzMwL3VzX3RveW90YQRjY29kZQNtb3N0cG9wdWxhcgRjcG9zAzcEcG9zAzcEc2VjA3luX3RvcF9zdG9yaWVzBHNsawNnb3Z0YXNraW5nbmE
NASA space and aeronautics engineers are being called in to help examine Touota’s electronic throttles, to find out if they are the cause of the sudden auto accelerations.
“We are determined to get to the bottom of unintended acceleration,” U.S. Transportation Secretary Ray LaHood told Reuters.
The National Highway Traffic Safety Administration, NHTSA, part of the Transportation Department, is doing an investigation into Toyota’s throttles. As part of that probe, nine NASA scientists who are experts in electronics, electromagnetic interference, software and difficult problem solving will be lending a hand.
The NHTSA investigation is slated to be done by the summer, and then it will be decided whether to go forward with a formal probe.
In Japan Tuesday, Toyota president Akio Toyoda convened a committee with 50 members that will study safety problems.
The Mechanics and Legal Logistics of the Toyota Lawsuits
The litigation stemming from Toyota’s sudden-acceleration debacle continues to move forward, with the auto maker arguing Thursday that the 200 lawsuits stemming from the problem should be consolidated. http://www.google.com/hostednews/ap/article/ALeqM5imJf-xAYjZsiJx5KJN87X2aebzZQD9ELQ9N81
Toyota’s head attorney, Carl Dawson of Georgia, plead the car manufacturer’s case for having the personal injury and wrongful death suits, as well as any potential class action suits, merged.
“All these cases have common issues,” Dawson said. “There will be significant overlap.”
Dawson also argued that the suits should be handled in a California court, since Toyota’s U.S. headquarters is in Los Angeles. He argued his points before the U.S. Judicial Panel on Multidistrict Litigation in San Diego.
The hearing was a circus of lawyers, as The Wall Street Journal reported Friday. Two dozen attorneys had only two minutes each to make statement to the judicial panel, arguing that the cases be handled in venues such as Louisiana, for example. The Journal compared the proceedings to speed-dating. http://online.wsj.com/article/SB10001424052748704094104575143690736388422.html?mod=WSJ_hpp_LEFTWhatsNewsCollection “At stake are huge fees that the only a few lawyers will collect in the suits against Toyota…Lawyers based where the lawsuits are heard will have a good shot at taking the lead position in the cases,” The Journal wrote.
There have been 140 suits filed in federal courts against Toyota, and many more are pending in state courts.
Friday The Los Angeles Times offered an updated tally of the number of deaths now blamed on the acceleration of Toyota vehicles. It is more than 100, according to The Times, twice the number reported two months ago. http://www.latimes.com/business/la-fi-toyota-deaths26-2010mar26,0,5790258.story