Toyota saved $100 Million by delaying recall
02-21-2010, 07:02 PM
#1
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Toyota saved $100 Million by delaying recall
WASHINGTON — Toyota officials claimed they saved the company $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 congressional investigators.
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $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 automaker’s recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $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 automaker’s recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.
02-22-2010, 07:12 AM
#3
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Someone in here mentioned that Feb would be a "bloodbath" for Toyota. Is this what they meant? The hits just keep coming for them. Toyota needs to sign Tiger Woods as a sponsor. They are both having terrible years.
02-22-2010, 09:30 AM
#4
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But . . . but . . . Toyota loves us and the environment and can do no wrong!
But . . . but . . . it's all a government conspiracy!
But . . . but . . . it's only because incompetent Americans made the parts!
But . . . but . . . it's only because drivers don't know how to drive!
But . . . but . . . Toyota is honest and upstanding and would never try to cover anything up!
Running out of buts, aren't they?
But . . . but . . . it's all a government conspiracy!
But . . . but . . . it's only because incompetent Americans made the parts!
But . . . but . . . it's only because drivers don't know how to drive!
But . . . but . . . Toyota is honest and upstanding and would never try to cover anything up!
Running out of buts, aren't they?
02-22-2010, 09:33 AM
#5
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Join Date: Jun 2001
Location: Pewee Valley, KY
Posts: 4,600
But . . . but . . . Toyota loves us and the environment and can do no wrong!
But . . . but . . . it's all a government conspiracy!
But . . . but . . . it's only because incompetent Americans made the parts!
But . . . but . . . it's only because drivers don't know how to drive!
But . . . but . . . Toyota is honest and upstanding and would never try to cover anything up!
Running out of buts, aren't they?
But . . . but . . . it's all a government conspiracy!
But . . . but . . . it's only because incompetent Americans made the parts!
But . . . but . . . it's only because drivers don't know how to drive!
But . . . but . . . Toyota is honest and upstanding and would never try to cover anything up!
Running out of buts, aren't they?
Well played sir, well played.
02-22-2010, 10:01 AM
#7
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Location: Sterling Heights, MI
Posts: 6,166
Attaching the phrase "Wins for Toyota" under the safety section with the stated "win" of delaying safety items and recalls to save money would seem to be a monster anger-inducer. It's pretty outrageous, but will the lemmings care?
02-22-2010, 10:50 AM
#8
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Posts: 1,881
Does not matter if the CEO came out and said it was all done on purpose. Americans love to hate American companies and love the other guys. The news interviews with Toyota customers prove this. Not one person will speak bad about them. Where is Ralph Nader now?? Oh thats right he is blaming the AMERICAN safty agencies for the problem.
02-22-2010, 11:04 AM
#9
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Location: Ontario
Posts: 2,712
It's amazing that any level of management would allow such a presentation to even exist worded like that. While I can see the person responsible wanting to 'brag' about saving the company money, you wouldn't think he be stupid enough to put it down in writing.
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