Begun, the Toyota War has…

posted at 5:52 pm on February 23, 2010 by Karl

It’s officially a full-court press:

Leading Democrats on the House Energy and Commerce Committee said Monday that Toyota relied on a flawed study in dismissing the notion that computer issues could be at fault for sticking accelerator pedals, and then made misleading statements about the repairs.

The comments, from Henry A. Waxman, chairman of the committee, and Bart Stupak, a subcommittee chairman, were made in an 11-page letter to James E. Lentz III, the president of Toyota Motor Sales U.S.A. The letter was released Monday on the eve of the committee’s hearing on the Toyota recalls, one of three scheduled.

Verdict first, trial after — but it does not stop there. Toyota is now also under investigation by Securities and Exchange Commission and United States attorney’s office for the Southern District of New York.

However, as even the Detroit News concedes, uncontrolled acceleration claims have a chequered history:

Experts say the number of fatalities linked to reports of uncontrolled acceleration of Toyota vehicles — 15 when the first recall was announced, and now 34 — isn’t a big number for a company that sells close to 2 million cars and trucks a year in the United States.

Most independent auto experts and investigators say unintended acceleration is most often caused by driver error; the driver, in a moment of panic, or in an unfamiliar vehicle, may accidentally step on the wrong pedal.

Thirty years ago, Audi faced damaging complaints that its cars were prone to unintended acceleration — allegations that U.S. safety regulators now say were never proven.

Similar complaints in the late 1990s against Chrysler Corp.’s Jeep Grand Cherokee turned up no defect, said Vines, who was then working for Chrysler. The problem was either a floor mat trapping the gas pedal, or people stepping on the gas, he said.

But Toyota is increasingly facing allegations from plaintiffs’ attorneys that electronic interference with the systems in the vehicle may be causing the acceleration to go haywire.

They point to the automaker’s adoption, starting about 10 years ago, of electronic throttle control, in which the driver stepping on the gas is actually sending an electronic signal to the throttle.

Indeed, the biggest proponent of this unproven theory is Sean Kane, president of Massachusetts-based Safety Research & Strategies Inc., who will be testifying before the House on Wednesday:

Two weeks ago, his firm released a 51-page report that alleged at least 2,262 Toyota and Lexus owners have reported sudden acceleration that resulted in 815 crashes, 341 injuries and 19 deaths since 1999. About half of the complaints involved vehicles not included in any current Toyota recalls, according to the report.

Toyota said it is unable to confirm Mr. Kane’s numbers and has hired its own study firm.

Mr. Kane said his latest report wasn’t produced as a direct result of funding from a particular lawsuit against Toyota. Yet lawyers often pay him a consulting fee to review individual crashes, listen to depositions, advise lawyers on questions and strategies, and produce analyses of crash trends using National Highway Traffic Safety Administration data. He does not receive a bonus or a percentage of any settlement in such cases, he said.

In the report released last week, Mr. Kane thanked a group of lawyers who have pending cases against Toyota for sponsoring some of his research into unintended acceleration in Toyotas. Three of those lawyers—Terrence McCartney of New York; Donald Slavik of Milwaukee, Wis.; and R. Graham Esdale Jr. of Montgomery, Ala.—said Mr. Kane has helped on cases, including litigation against Toyota.

Kane got his start with the Naderite Center for Auto Safety. That group’s current executive director, Clarence Ditlow, is also scheduled to testify:

He popularized the story about “exploding” General Motors pickup trucks, which NBC subsequently had to retract. In 1993 Mr. Ditlow accused a GM lawyer of destroying evidence about the pickups; the lawyer sued for slander, and Mr. Ditlow’s insurance company (over his protests) settled for $500,000. During that case, a Detroit judge fined Mr. Ditlow for “gross misconduct” for sharing a sealed document with a plaintiffs’ lawyer suing GM. An appeals court overturned the fine, but determined that Mr. Ditlow’s outfit and the plaintiffs’ lawyer had “mutual back-scratching arrangements.” Even more explicitly, on March 8, 1994, a California judge overseeing a class action against Nissan held that Mr. Ditlow’s center had acted “in active concert with, and as agents of” two Texas trial lawyers (Mr. Ditlow’s lawyer claims the order is somehow invalid).

Another witness will be Joan Claybrook, of the Naderite Public Citizen, which — among other things — campaigns against “astroturf” lobbying, though it refuses to disclose how many millions from plaintiffs’ attorneys fund its operations.

With the deck this stacked, the New York Times chooses to focus entirely on “whether the deep financial and personal connections between lawmakers and the carmaker could taint the inquiries.” This ignores not only the ties between the Democrats and their trial attorney donors, but also the new conflict of interest arising from their takeover of General Motors. The issue was obvious to many, including Canada’s Financial Post:

The White House has denied any such motivation on the part of the United States. But that denial lacks credibility. While it may be technically true that President Obama’s team didn’t explicitly reach a decision to target Toyota, nobody in this crowd needs a presidential order to turn the Japanese auto giant’s Sudden Unintended Acceleration (SUA) problem into a national industrial advantage for the United States. The owners of union-dominated Government Motors can spot a strategic economic opportunity without waiting for the memo from head office.

California Congressman Henry Waxman swung into action, using recent anecdotal reports of sudden acceleration as a pretext for extended assaults on Toyota and its management. The UAW has joined the project as part of its campaign against Toyota’s closure of a unionized California plant.

By the way, that plant was a joint venture between Toyota and Government Motors, and is being closed because of the latter’s bankruptcy — but I digress.

The larger issue is the Obama administration’s crony capitalism, and the way it erodes trust in our government. The administration staffed up with the people who caused the financial crisis. It cut backroom deals to turn our health insurance into a public utility. And it bailed out Government Motors to aid its Big Labor muscle. Against this backdrop, when the feds start investigating the steering on Toyota Corollas and Matrixes, one wonders whether the same zeal will be given to the Chevrolet Cobalt, which has more than ten times as many NHTSA complaints.

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The top Republican on the House Oversight and Government Reform committee is calling for an investigation into senior Transportation Department officials, claiming contact with an insurance agency may have unduly influenced a congressional investigation into faulty Toyotas.

Read more: http://www.politico.com/news/stories/0210/33321.html#ixzz0gPYbFFlY

HMMMMM…..this whole thing smells like a big old skunk!

evie on February 23, 2010 at 8:07 PM

Toyota is not only competition to the Government-owned Chrysler and GM, but it also doesn’t have any politically inconvenient union workers who would get upset by attacking it. Not only that, Toyota Camry and Corolla are some of the best-selling cars out there, and Toyota trucks are rapidly building a good reputation.

On top of all that, Toyota was the top manufacturer that cashed in on the “Cash for Clunkers” program that was almost certainly meant to pump up Chrysler and GM.

So I can completely see why they’re targeting Toyota. The problem is, Toyota has a lot of very loyal customer who will not appreciate this one bit. And most of them are able to vote.

BTW, loyal Toyota driver since 1990. They cost more than a lot of other cars, but they hold their value. And for good reason. The Corolla in particular is a really good value.

tom on February 23, 2010 at 8:12 PM

ah, BO is just mad because people traded in their ford and chevy’s for toyotas and hondas during last year’s big cash give-away….

jbh45 on February 23, 2010 at 8:12 PM

Leading Democrats on the House Energy and Commerce Committee said admitted Monday that Toyota they, algore,the idiot liberals in all of our local coffee shops and all the dimwit hollywood freaks relied on a flawed study

Imagine

peacenprosperity on February 23, 2010 at 8:18 PM

When Dodges are built in Mexico City and Toyotas are built in Fresno, which is the “American” car?

Mary in LA on February 23, 2010 at 8:22 PM

I have never owned, and never will own, a Toyota. But for business reasons I have driven probably 100 different Toyota models in the last 20 years, putting as much as 2500 miles on each. My experience in the automotive world has included many of the so-called “defective” makes and models, including “runaway” Audis.

I bring this up to back my own belief which is that the US government, likely at the behest of Osama Obama, GM and the autoworker unions, is doing a hatchet job on Toyota that would, if the plaintiffs were private companies or individuals, result in unimaginable damage awards to Toyota for libel if taken to court.

Experience tells me that no modern car is inherently “unsafe” or “defective.” There are problems, as in the case of any product designed and built by humans, but they are easily correctable and are corrected.

Toyota was judged guilty from the moment this whole affair began. The company was given, and is unlikely to be given, a chance to honestly defend itself against charges that are primarily made up of hearsay and unproven/unprovable allegations. Every move Toyota has made has been judged wrong by a jury of people with axes to grind.

The most dangerous element in an automobile is the driver. Even trained, experienced drivers make mistakes, some of which are fatal.

Like AGW, the War Against Toyota is politically motivated by people who expect to profit from damaging the company.

Each of these self-righteous, self-serving, crooked goons — Waxman and the rest of the congress members who have leaped on the bandwagon, the Chicago Jesus and his union thugs and the “safety advocates” — should lose their jobs and, IMO, be prosecuted for slanderous, false and ultimately criminal racketeering in their words and actions.

This is not the way things should be done in the United States.

MrScribbler on February 23, 2010 at 8:30 PM

It is all fun and games until Toyota starts closing their American factories.

Howcome on February 23, 2010 at 6:30 PM

Yeah, I wonder how long until Toyota goes Galt!

lsutiger on February 23, 2010 at 8:52 PM

I think Mr. Fake8 is right that this is a milestone on the road to fascism.

I had really high hopes for our little country when I was little I remember.

happyfeet on February 23, 2010 at 8:53 PM

When Dodges are built in Mexico City and Toyotas are built in Fresno, which is the “American” car?

Mary in LA on February 23, 2010 at 8:22 PM

The answer… Toyota isn’t the “government” car.

Trainwreck on February 23, 2010 at 8:59 PM

Of course Japan is going to get beeach slapped over all this….they are are friend. Cause and effect. That’ll teach em’!

Limerick on February 23, 2010 at 9:11 PM

Toyota Motor Mfg. is one of the finest corporate citizens in the U.S. Their commitment to quality and safety is second to none. Their facility at Georgetown, Ky. has brought prosperity to thousands. Their contributions to the community numbers in the millions. The problem the Communists in D.C. have with Toyota is that they are successful without the thugs at the United Auto Workers. Time after time Toyota’s workers have rejected the unions because Toyota offers them better opportunities without the dues. Obama and his Merry Little Band of Thieves can’t compete without slander and sleaze. By the way I have nothing to do with Toyota except that I have owned six of their cars and will never buy any other brand unless the Communists run them out of the country! Most states begged Toyota to relocate to the U.S. and now that the Communists have taken over, they are being smeared and insulted. Obama hates successful businesses! Check the safety issues with the Government Run Motors and you will see what an injustice this is!

Marco on February 23, 2010 at 9:55 PM

Ah, plaintiffs’ lawyers, unions, and Government Motors: now I see why Toyota is being hammered by Obama. A three-bagger! I hope it’s not a home run….

PattyJ on February 23, 2010 at 10:33 PM

1966 would have been the Mark IV motor(?) with…again I’m hazy here…300 hp? Rare as dodo birds these days, I never see them and I work on some old cars now and then.

Bishop on February 23, 2010 at 7:25 PM

Ha, good question, it’s been a while. My father gave me the car, he bought it with a factory order, I seem to recall it was 325hp, but that might have been wishfull thinking. Turned a nifty 1/4 though, straight from the factory :)
And yeah, it’s rare these days. For as nice as those big blocks were, they sure werent any more durable than the smalleys, not much meat around the jugs.

Okay, back to our regularly scheduled thread, sorry for the off topic. But I’m going to be hearing HAAAROOOOOOM from that 4 barrel in my sleep tonight, thanks guys.

JusDreamin on February 23, 2010 at 10:35 PM

Did you see this with Meghan McArdle today Mr. Karl?

It’s kind of a nice job what she does.

happyfeet on February 23, 2010 at 11:10 PM

Love all the Japanese car commercials above! The anecdotes about rental cars and Dodge Magnums were great as was the story about the impossibility of a Lexus or whatever giving that lady the ride of her life. I’m sure that your perceptive genius caught the lie in her story which 25 or so lawyers and 50 engineers working for Toyota and their insurers couldn’t possibly catch. That Algebra I had to come in handy, someday. Eh?

BTW, On quality check J. D. Powers, any of you who can read. Or if your like liberal crap, go to Consumer Reports. They even liked the Dems healthcare agenda. And your crap Japanese cars. Ask a repairman about their “best buy” washers and other marvels they endorse while you are at it. Imagine that…

On what constitutes an American Car, try content studies since our nation’s trade policies have destroyed our manufacturing sector and the stinkin’ unoins and blacks or the regulation of everything in every shop likely didn’t help.

IlikedAUH2O on February 23, 2010 at 11:46 PM

But the things that don’t help are at least part of our nation and are small problems.

IlikedAUH2O on February 23, 2010 at 11:48 PM

These problems disappear when Obama has his way and we all have to ride trains.

seven on February 24, 2010 at 12:05 AM

As an Automotive Technician for 25+ years, I can say that without doubt, Honda, and Toyota, build the best cars on the road PERIOD. I’ve worked on them all over the years, so my opinion is based on real-world experience. All manufacturers have recalls and campaigns to improve defects in their product. They spend billions doing it, without a government gun pointed at their heads. I have no doubt that Toyota wished to fix this issue, and don’t need the government to mandate it.

I’ve talked to a number of my colleagues about this, they all feel that this is a hatchet job courtesy of the Jug-Eared Jesus. Can we demand a recall of our government, the future safety and security of our nation is at stake. Our gas pedal is stuck, and we’re about to drive of a cliff.

M-14 2go on February 24, 2010 at 6:34 AM

Maybe Waxman and Obama would be happier if Toyota closed ALL of its U.S. plants and moved North American operations to Canada and Mexico. That would help the unemployment numbers……NOT.

olesparkie on February 24, 2010 at 8:27 AM

BTW, my 2000 Toyota Tundra is running like a champ. The only domestic auto I’d even remotely consider would be a Ford F-150. Government Motors suck.

olesparkie on February 24, 2010 at 8:30 AM

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