Toyota Avoided Recall Through Deal, Bragged About Saving Money
I don't know why this is suddenly such big news. Car companies have been negotiating recall compromises with the government for decades, leading to such strange consumer "solutions" as the "hidden warranty", under which dealers don't have to inform you of a manufacturing defect (or pay for it) unless you specifically ask them: "Is there a hidden warranty on this?"
Toyota Motor Corp. officials took credit for saving hundreds of millions of dollars by persuading federal regulators to limit or avoid safety recalls and rules, a company document released Sunday shows.
The document, an internal company presentation, depicts an automaker focused on getting what it termed "favorable recall outcomes" from regulators, with a goal of saving money even as the death toll climbed from accidents in which Toyota vehicles accelerated uncontrollably.
The presentation by executives in the company's Washington, D.C., office was addressed to Yoshimi Inaba, Toyota's top U.S. executive, and dated July 6, 2009 -- months before the sudden-acceleration problem was widely known outside Toyota and the federal highway regulatory agency.
The document, released by congressional investigators, describes the automaker's regulatory agenda and highlights a wide-ranging string of "wins for Toyota."
So what is unusual. Corporations buy off the government routinely.
statusquObama, change you can only pretend in
... to American car manufacturers...
If Ford and GM can't make money off of this, they don't deserve to survive.
JACK (V.O.)
Take the number of vehicles in the
field, (A), and multiply it by the
probable rate of failure, (B), then
multiply the result by the average
out-of-court settlement, (C). A
times B times C equals X...
CUT TO:
INT. AIRPLANE CABIN - MOVING DOWN RUNWAY
Jack is speaking to the BUSINESSWOMAN next to him.
JACK
If X is less than the cost of a
recall, we don't do one.
...
BUSINESS WOMAN
... Which... car company do you work
for?
JACK
A major one.
your name's Lebowski, Lebowski... and your wife is Bunny
. . . "Tort Reform" will soon solve your problems.
As far as those that you kill or injure for profit? Well, as long as it's bipartisan, #$%& 'em.
Corruption favors the wealthy.
I'm wondering if Toyota has had hubris since GOP senators and congresscritters have supported them since they have factories down south.
I've never seen change without a fire
After over 20 years of Fords. I finally said ok to a Toyota.
I bought a 2007 Toyota Tacoma. (in 2007) 4x4, 4 door full length bed.
I bought it for my retirement. I'm 52. I figured this will last the rest of my life. Just my luck.
They should have to buy it back from me if I want.
I've had no problems with this truck though. But, I've only put 18k on it. I don't often drive it.
I think I'll go pay the dealer a visit and ask him about this hidden warranty. Thanks for the heads up.
What is your conceptual, continuity?
Susie,
Just because these types of deals have been going on since time immortal, doesn't make it right or any less shocking. I am for smart regulation of corporations and the last administration proved they were not smart about anything.
Election 2012: Be Educated! Be Active! Vote!
www.phoenixjustice.com
I'm just saying they've been getting away with this for decades, and it's a bigger problem than just Toyota.
A former award-winning journalist and lifelong class warrior, keeping a jaundiced eye on the Washington elite.
have always had a reputation for quality. Guess they got complacent, just as the US Mfs. did.
It's been a false reputation.
Election 2012: Be Educated! Be Active! Vote!
www.phoenixjustice.com
I don't know why this is suddenly such big news. Car companies have been negotiating recall compromises with the government for decades... -susie
well, news to me... and most everybody else, i'd guess...
and it's still distressing...
If the government would just stop over-regulating private industry, the free-market will take care of this. Clearly the answer to problems like this are less government interference. The problems with sudden acceleration wouldn't exist if the government wasn't making Toyota jump through so many regulatory hoops. Well, as far as you would know, they wouldn't exist.
I am near 60 and have never seen the free market take care of any problem on it's own. It will not happen ever. Money always trumps safety, hell bush even said money trumps peace.
republicans are children not capable of making sound rational decisions about anything because they are CHILDREN!
republicanism/conservatism is a menatl illness and it has almost killed America!
Because two former Toyota employees were part of the NHTSA team that determined to downplay any potential recall. That is one part of the BIG DEAL. The other part of the BIG DEAL is the question, did these Toyota NHTSA overplay any "issue" with other auto companies--especially domestic auto companies relating to quality issues or recalls? ie--Other companies bad, Toyota good.
This is an evil, yet ingenious way, to retain and gain market share.
If it was a domestic UAW plant, would these same coverups have happened under the anti-union Bush Administration? I doubt it.
Money always trumps the lives of the little people and their families. It doesn't seem to matter who's making the money either. Some dudes in Japan get rich while American families die in terrifying crashes and the Bush administration sides with the rich dudes in Japan. The teapartiers were about 9 years too late getting started.
because of the death toll? And because at least one innocent man is in prison because of it?
I'm pretty sure that if you went to view..page source in your browser (CTRL+U) in Firefox, you'd notice that he had the /sarcasm> tag turned on for his entire post:>)
Comments are closed on this entry