Toyota - The smoking gun

[xcel]

How Japanese management handled a serious problem in the USA.

Wayne Gerdes - CleanMPG - April 8, 2010

Toyota logo will be tarnished for quite some time to come.

That said, Toyota is still one of the most fuel efficient and reliable manufacturers we can purchase from today!

In an E-Mail addressed to Katsuhiko Koganei, Executive Coordinator for Corporate Communications for Toyota Motor Sales U.S.A. from Irv Miller, Toyota’s former Group VP for Environment and Public Affairs dated January 16:

"I hate to break this to you but WE HAVE A tendency for MECHANICAL failure in accelerator pedals of a certain manufacturer on certain models... We need to come clean about accelerator problems. We are not protecting our customers by keeping this quiet. The time to hide on this one is over… We better just hope that they can get NHTSA (National Highway Traffic Safety Administration) to work with us in coming (up) with a workable solution that does not put us out of business."

This was just five days before Toyota’s Sticking Pedals recall on an estimated 2.3 Million vehicles.

Irv Miller retired on February 1, 2010 with a US Toyota management shakeup announced on Dec. 17th, 2009.

This is going to hurt

The most damning evidence came from a memo sent to Mike Michels, VP of External Communications from Koganei earlier that same day.

With a subject line including a draft statement to respond to an ABC News story, Koganei wrote:

"Now I talked with you on the phone, we should not mention about the mechanical failures of acc pedal because we have not clarified the real cause of the sticking acc pedal formally, and the remedy for the matter has not been confirmed."

In addition, Koganei added that Toyota executives were concerned that news of the mechanical failures "might raise another uneasiness of customers".

This is apparently why the NHTSA’s went after the maximum penalty of $16.4 Million fine earlier this week given Toyota was protecting its reputation rather than protecting the consumer.

Last Tuesday, the DOT sought the maximum Civil Penalty against Toyota.

“We now have proof that Toyota failed to live up to its legal obligations,” said Secretary LaHood. “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. For those reasons, we are seeking the maximum penalty possible under current laws.”

According to documents obtained by the AP dated Sept. 29, Toyota's European division issued technical information "identifying a production improvement and repair procedure to address complaints by customers in those countries of sticking accelerator pedals, sudden rpm increase and/or sudden vehicle acceleration."

The Japanese automaker has yet to state whether it will accept or contest the fine but you can guess as to this outcome…

As of today, Toyota has been named in 138 potential class-action lawsuits over falling vehicle values and nearly 100 personal injury and wrongful death cases.

Toyota Response just hours ago

Toyota Statement on Internal Communications Regarding Our Recent Recalls

While Toyota does not comment on internal company communications and cannot comment on Mr. Miller’s email, we have publicly acknowledged on several occasions that the company did a poor job of communicating during the period preceding our recent recalls. We have subsequently taken a number of important steps to improve our communications with regulators and customers on safety-related matters to ensure that this does not happen again. These include the appointment of a new Chief Quality Officer for North America and a greater role for the region in making safety-related decisions. As part of our heightened commitment to quality assurance, we are fully committed to being more transparent.

Conclusions?

While Toyota/Lexus sales have rebounded strongly from the recall disaster and they now have their “ducks in a row” regarding future quality lapses, the apparent short term cover up of a known issue relating to the sticking accelerator pedals is at a minimum, shameful. At its worst, we will probably see a few Japanese heads within Toyota begin to roll over the next couple of months.

[noflash]

I still think Toyota intends to and does build a safe car.

Exposed coverups are always scary. You're glad they come out, but it always makes think of the ones that we don't know about.

Hopefully, and likely, this gets Toyota back on track.

nf

[noflash]

Every UA article previous to this one had poss blaming old people, lawyers, scammers, distracted kids & rarely Toyota. Now Wayne puts the Smoking Gun article prominently out there. AND....

crickets...

<chirp>

[Ophbalance]

I think, mostly because those other articles dealt with the Prius, which is produced and shipped from overseas, and not subject to this gas pedal issue. This article deals with those vehicles produced in North America. Two separate issues.

[noflash]

Originally Posted by xcel

According to documents obtained by the AP dated Sept. 29, Toyota's European division issued technical information "identifying a production improvement and repair procedure to address complaints by customers in those countries of sticking accelerator pedals, sudden rpm increase and/or sudden vehicle acceleration."

[WriConsult]

Toyota identified the sticking gas pedal as something that could cause a UA incident, and they withheld the information. For this they certainly deserve a $16.4M dope-slap.

But to the best of my knowledge, no actual UA incidents have been attributed to the sticking pedals. They can all be attributed to either floormat entrapment or driver error.

[noflash]

I hadn't heard that was determined.

nf

[WriConsult]

I don't think there's been a categorical determination that the sticking pedals haven't caused any UA incidents.

But so far I don't think we've heard that the sticking pedals addressed by the Toyota internal memo HAVE caused any incidents.

That could change, but I believe it is the current state of knowledge on the subject.

[Right Lane Cruiser]

I'll be glad when we finally get to the bottom of this. There has to be a definitive answer in this somewhere, and hopefully the message of "covering up is not a valid option" has been well heard and taken to heart.

[ILAveo]

Originally Posted by WriConsult

Toyota identified the sticking gas pedal as something that could cause a UA incident, and they withheld the information. For this they certainly deserve a $16.4M dope-slap.

But to the best of my knowledge, no actual UA incidents have been attributed to the sticking pedals.....

If a plaintiff makes a case that one played a role in an accident, obviously 'Yota won't be able to make much use of the "we met all safety standards" defense. Seems like they might get stuck with punitive damages too, since you can't throw a corporation in jail for killing people.