Toyota’s Brain Hurts

Keep repeating: Toyota’s fault detection system is perfect. Toyota’s fault detection system is perfect. Toyota’s fault detection system is perrrrrfect…..

Did that help?

Number One Automaker Toyota has hypnotized NHTSA in several sudden unintended acceleration investigations by chanting that phrase. Its fault detection system could not be breached, Toyota said, and therefore drivers who reported SUA were nuts or incompetent.

Toyota Dealers to Customers: It’s Not Me, It’s You

Toyota has never had any good choices in extricating itself from the Sudden Unintended Acceleration problem it has been in for a year and counting. (Except admit the problem, work diligently to resolve it, take your lumps and move on.) But as many a public relations expert has opined already, they have won themselves a place in the pantheon of business school case studies in the “What-not-to-Do” category.

The streak continues. We’ve noticed a dribbling of press releases from Toyota dealerships touting the NHTSA interpretation of the Toyota black box data as proof that there is nothing wrong with their products. These headlines and sub-heads left us gob-smacked:

No Black Box Exoneration for Toyota, Part II

After the Wall Street Journal plastered the front page a few weeks ago claiming NHTSA had “black box” (aka Event Data Recorder or EDR) data to support that driver error, not electronics, was the cause of the unintended acceleration issues in Toyotas, the headline is back yet again following a NHTSA Congressional briefing yesterday.

The WSJ in a subsequent story identified George Person, recently retired head of the recall division at NHTSA, as the source.  (see No Black Box Exoneration for Toyota and Lawsuits Fill in Outline of Toyota Sudden Acceleration Cover-Up)

Money for Nothing and Complaints for Free

Interesting fact: A raft of academic and industry studies show that customers who complain and have their complaint successfully resolved bring in more money to the company than it costs to fix the problem.

In the topsy-turvy Toyota World, however, it’s the customers who are already happy that get the red carpet treatment and big bucks. Have you heard about Nick and Sharyn Davis, from Parker County, Texas? You will soon. According to The Weatherford Democrat, the Davises are among the lucky winners in a Toyota advertising campaign, touting “real people with real stories about their Toyotas. And, the Davises are part of those real people.”

Lawsuits Fill in Outline of Toyota Sudden Accleration Cover-Up

The splash that retired NHTSA recall division chief George Person made when he told The Wall Street Journal that the agency was sitting on a report that would show driver error to be the cause of Toyota SUA events has been submerged by a new wave of reality, as attorneys heading the Multi-District Litigation (MDL) charged in a class-action complaint that Toyota knew since 2003 that it had an SUA problem it could not explain and its own dealers witnessed some events.

The MDL, filed this week on behalf of Toyota and Lexus owners alleging that the automaker’s SUA defect has caused their vehicles to lose value, shows that Toyota has known, at least since May 2003 that its Electronic Throttle Control had a “dangerous” unintended acceleration problem with an unknown cause. That civil action, and a second one claiming damages for Toyota and Lexus owners who were injured or killed in crashes alleged to have been caused by SUA, cite six incidents which occurred between 2003 and 2010, witnessed by Toyota technicians, dealers and others. The e-mails also show that Toyota spent considerable energy trying to divert NHTSA from looking too closely at the issue. Here are some highlights from the class-action complaint:

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