[Quietcars] Toyota boasted saving $100-million on

[michael townsend]

The on-going saga of Toyota Motor corporation presents this news item:

 
  

Toyota boasted saving $100-million on recall, documents show A Toyota
dealership in Phoenix, Ariz.
A Toyota dealership in Phoenix, Ariz.
Car maker successfully negotiated a limited recall with Washington Comments
(53) KEN THOMAS WASHINGTON - The Associated Press Published on Sunday, Feb.
21, 2010 6:20PM EST Last updated on Sunday, Feb. 21, 2010 6:24PM EST T oyota
officials claimed they saved the company $100-million (U.S.) 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 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.
A Toyota spokeswoman did not immediately comment.
The documents are expected to be raised in Congress, which is holding two
hearings on Toyota's massive recalls this week. The Japanese automaker has
called back
8.5
million vehicles in recent months to deal with safety problems involving gas
pedals, floor mats and brakes.
The world's largest automaker has been criticized for responding too slowly
to complaints of sudden acceleration in its vehicles, threatening to
undermine its reputation for quality and safety.
Kurt Bardella, a spokesman for Rep. Darrell Issa, R-Calif., 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."
The new documents show the financial benefit of delay. In the presentation,
Toyota said a phase-in to new safety regulations for side air bags saved the
company $124-million and 50,000 man hours. Delaying a rule for tougher door
locks saved $11-million.
On defect regulations, the document boasts that Toyota "avoided
investigation"
on
rusting Tacoma pickup trucks. The National Highway Trafic Safety
Administration investigated the case in 2008 but closed it without finding a
safety defect. Toyota agreed to buy back certain rusty pickups, inspect
other and extend warranties.
The document lists seven "Wins for Toyota & Industry," including "favorable
recall outcomes," "secured safety rulemaking favorable to Toyota" and
"vehicles not in climate legislation." Another page lists "key safety
issues," including "Sudden acceleration on ES/Camry, Tacoma, LS etc."
In one passage, the document says Toyota "negotiated 'equipment' recall on
Camry/ES re SA; saved $100M+, w/ no defect found."