Toyota saved US$100m by negotiating limited mat recall
By Ken Thomas |
February 23, 2010, Tuesday
|
Print Edition
Print Edition
TOYOTA officials claimed they saved the company US$100 million by successfully negotiating with the government on a limited recall of floor mats in some Toyota and Lexus vehicles, according to new documents shared with United States congressional investigators.
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved US$100 million or more by negotiating an "equipment recall" of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.
The savings are listed under the title, "Wins for Toyota - Safety Group." The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.
The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls. Two House committees are holding hearings this week on the Japanese auto maker's recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
The world's largest car maker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles, threatening to undermine its reputation for quality and safety.
The documents were turned over to the House Oversight and Government Reform Committee and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.
Toyota said in a statement: "Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality."
Kurt Bardella, a spokesman for Representative Darrell Issa, the top Republican on the Oversight Committee, said the documents raise questions on "whether Toyota was lobbying for less rigid actions from regulators to protect their bottom line."
Transportation Department spokeswoman Olivia Alair called the document "very telling. And that's why Secretary (Ray) LaHood has been saying we're going to hold Toyota's feet to the fire and make sure they do what's necessary to make their cars safe for the driving public."
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved US$100 million or more by negotiating an "equipment recall" of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.
The savings are listed under the title, "Wins for Toyota - Safety Group." The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.
The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls. Two House committees are holding hearings this week on the Japanese auto maker's recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
The world's largest car maker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles, threatening to undermine its reputation for quality and safety.
The documents were turned over to the House Oversight and Government Reform Committee and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.
Toyota said in a statement: "Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality."
Kurt Bardella, a spokesman for Representative Darrell Issa, the top Republican on the Oversight Committee, said the documents raise questions on "whether Toyota was lobbying for less rigid actions from regulators to protect their bottom line."
Transportation Department spokeswoman Olivia Alair called the document "very telling. And that's why Secretary (Ray) LaHood has been saying we're going to hold Toyota's feet to the fire and make sure they do what's necessary to make their cars safe for the driving public."
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