Toyota’s Billion Dollar Web

Back in 2010, after Toyota announced that a federal grand jury in New York had subpoenaed the company on June 29 for documents regarding relay rod failures in Toyota truck models, we asked if the automaker would be the first to be prosecuted under the Transportation Recall Enhanced Accountability and Documentation Act (TREAD).

Well, right question, wrong defect.

Under the settlement with the Department of Justice announced today, Toyota is banged for $1.2 billion, and prosecution for committing one count of wire fraud is deferred for three years, for the lies it told about the floor mat entrapment and sticky pedal recalls. According to Toyota’s Statement of Facts, the automaker sought to limit its floor mat recalls, even though the entrapment hazard affected other models, and resisted the sticky pedal recall, even though Toyota had addressed the problem in Europe.

“This sends a mixed message,” says Sean Kane, president of Safety Research & Strategies. “On the one hand, a $1.2 billion fine is a very significant hit. But the government’s focus is only on the narrow areas of the floor mats and sticky pedals. The bulk of Toyota vehicles experiencing Unintended Acceleration problems were never recalled.  That billion dollars doesn’t do a thing for Toyota owners stuck with defective vehicles.”

The skeleton of this particular set of lies have been in the public domain for several years. In April 2010, when former Secretary of Transportation Ray LaHood announced that the agency had imposed a $16.4 million fine on Toyota for failing to recall 2.3 million vehicles with defective accelerator pedals – then the largest civil penalty NHTSA had levied against an automaker – the Secretary failed to make public the documents laying out his rationale. In May 2011, NHTSA quietly posted the sternly worded demand letter that explained why Toyota got slapped.

To remind our readers, Toyota recalled the CTS supplied pedal in Europe in September 2009, but waited until January 2010 to recall the pedals in the U.S. However, on October 7, 2009, “a staff member of the Toyota Motor Corporation Product Planning and Management Division sent a copy of an Engineering Design Instruction describing the pedal remedy that was already implemented in Europe to someone at Toyota Motor Engineering and Manufacturing North America, Inc. for the accelerator pedal of a RAV 4 manufactured in Canada. Two weeks later “a member of the TMC PPM inexplicably instructed a member of the TEMA PPM not to implement this Engineering Change Instruction. Furthermore, in November 2009, Toyota provided NHTSA with FTRs regarding sticking accelerator pedals on vehicles in the United States but not with information regarding Toyota’s extensive testing and determinations regarding the cause of the sticking accelerator pedals or an explanation of the significance of the FTRs, the demand letter said.

Fixated on Floor Mats

Last month, NHTSA kicked a two-year-old investigation into unintended acceleration in Ford Fusion and Mercury Milan vehicles up to an Engineering Analysis. The suspected defect – floor mats that can entrap the accelerator pedal. According to the National Highway Traffic Safety Administration’s Office of Defects Analysis:

“A heel blocker in the floor pan provides a platform that may lift an unsecured mat into contact with the pedal. Ford introduced new pedals as a running change early in model year (MY) 2010 vehicles. Analysis of complaints received by ODI and Ford show elevated rates of pedal entrapment incidents in MY 2008 through early 2010 production vehicles. Incidents typically occur following hard pedal applications to pass slower traffic or when merging into faster traffic. Drivers allege continued high engine power after releasing the accelerator pedal and difficulty braking, including reports that the incident was controlled by shifting to neutral or turning the engine off. Drivers and service technicians reference observing evidence of mat interference or note unsecured Ford or aftermarket all weather floor mats in post-incident inspections.”

This action was followed by a high-profile $17.4 million civil penalty that the agency levied against Toyota for failing to launch a timely recall for floor mat interference involving Lexus RX350 and RX450h vehicles. This was a NHTSA-influenced recall of mysterious origins since the Vehicle Owner’s Questionnaire complaints didn’t seem to support a floor mat interference defect trend (see A Defect Remedy Delayed) – although the Lexus RX has certainly been plagued with all manner of sudden acceleration complaints.

These two events sent us digging through the recall and investigation archives to get a better handle on the greater context. There seems to have been an awful lot of floor mat-related brouhahas in the last few years. It seemed odd that floor mats – which exist solely to provide a barrier between muddy shoes and the carpeted floor pan – should suddenly be so troublesome. In the old days, rubber floor mats were rarely secured with retention clips, as they are now. In one of its responses to the 2010 Ford Fusion Preliminary Evaluation, the automaker reminded NHTSA:

A Defect Remedy Delayed?

Well, we guess that the Christmas bonuses at Toyota are going to be a wee bit smaller this year, since the National Highway Traffic Safety Administration pocketed about 12 hours of profit from the automotive giant for failing to launch a timely recall for flying floor mats in the 2010 Lexus RX 350.

Yesterday, Toyota agreed to settle the government’s claim that it failed to file a Part 573 report to the government within the mandatory five days after discovering a defect requiring a recall for $17.35 million. According to the settlement agreement, Toyota admitted to NHTSA that it knew of 63 alleged incidents of possible floor mat pedal entrapment in Model Year 2010 Lexus RX models since 2009.

That brings the Total Timeliness Simoleans (TTS) Toyota has paid to NHTSA in two years to more than $66 million. Now, Toyota may be setting all kinds of NHTSA civil penalty records, but when one considers that the company reportedly posted a $3.2 billion profit in just the third quarter, one realizes, that by any-pain-in-the-pocketbook standard, this fine ain’t nothing.

In a statement dripping with gravitas, NHTSA Administrator David Strickland said: “Every moment of delay has the potential to lead to deaths or injuries on our nation's highways.”

This fine stems from a NHTSA-influenced floor mat interference recall last summer involving 2010 Lexus RX350 vehicles. In May 2012, the agency’s Office of Defects Investigation asked Toyota to review nine Vehicle Owner Questionnaires that indicated a floor mat entrapment problem for the 2010 RX. Toyota then reviewed its records for “additional reports that could indicate circumstances that may be consistent with potential floor mat entrapment.” On June 22, the automaker presented to ODI cases in which “potential floor mat entrapment was possible or alleged to have occurred in the subject,” including a timeline when each of the reports was received,” according to Toyota. On June 29, Toyota announced its 11th recall related to unintended acceleration, for alleged pedal entrapment by the All-Weather Floor Mat, involving the 2010 Lexus RX350 2010 and RX450 H vehicles.

Lexus RX Floor Mat Recall: NHTSA’s House of Cards Adds a New Floor

An examination of NHTSA records surrounding a June recall for floor mat interference in 2010 Lexus RX350 vehicles shows that the National Highway Traffic Safety Administration used mischaracterized data to buttress its request that Toyota recall the floor mats. Further, NHTSA ignored obvious clues that there might be an electronic root cause for the unintended acceleration complaints consumers filed with the agency.

These documents affirm the pattern that has characterized NHTSA’s Toyota Unintended Acceleration investigations – both informal and official -- since 2004:

  1. Dismiss the consumer’s description of the event, unless it conforms to the agency’s presumption of driver error or mechanical interference.
  2. Accept the explanations of the automaker or dealership of driver error or mechanical interference as completely accurate – even in the absence of any empirical evidence to support the contention.
  3. Dismiss any evidence of an electronic cause
  4. Settle for a limited, ineffective recall.
  5. Wait for another high-profile incident, consumer petition or accumulation of complaints to repeat the process

SRS has been examining the factual underpinnings of NHTSA’s actions in Toyota Unintended Acceleration since 2009. As we have in the past, we submitted a Freedom of Information Act request for all records related to Toyota’s most recent floor mat recall. We received 58 pages of documents, some of which were redacted under FOIA exemptions for confidential business information, personal identifying information and sections deemed “deliberative process.”

As we don’t know what information lies behind the redactions, we cannot assess the totality of the evidence behind NHTSA’s decision to seek a floor mat recall. However, what the unredacted portions show is there is scant evidence of a widespread floor mat interference problem and there is even less logic in the complaints NHTSA claims support its argument that a problem with the mats exists. But, there is much more evidence in the narratives of consumer complaints suggesting electronic causes of UA in 2010 Lexus RX 350.

Toyota: The Other Numbers

This morning National Public Radio reported Toyota sold 5 million vehicles in the last six months.  These strong sales numbers mean the company may be poised to regain the number one automaker slot from GM.  This talk of Toyota numbers had us here at Safety Research & Strategies looking at some other data -- complaints involving Toyota unintended acceleration and what’s been reported publicly in the last year.

And we would be remiss if we failed to note Toyota’s latest directive to the press about how to properly address Safety Research & Strategies president Sean Kane.  But first, the numbers:  We reviewed unintended acceleration incidents involving Toyota vehicles reported to the National Highway Traffic Safety Administration (NHTSA) between June 1, 2011 and July 17, 2012.  To identify these reports, we examined the NHTSA data for all consumer complaints containing keywords related to UA that were submitted during that time period. We then reviewed each complaint record to determine if it described a UA incident. So here they are:

- 368 total incidents

- 36 involved vehicles described as having had at least one UA recall remedy performed prior to the incident.

-  95 reported injuries; none of these incidents resulted in a fatality.

So what do we make of this?  Despite the Very Important Scientists and the Secretary of Transportation LaHood’s proclamation that “The verdict is in” and “There is no electronic-based cause for unintended high-speed acceleration in Toyotas. Period,” consumers are still taking the time to report their experience to the government – and many report incidents that don’t seem to be explained by floor mats, “sticky” pedals, or driver error.  You can read them here.

DOT Settles Lawsuit over Toyota UA Documents, New Congressional Inquiry Raises More Questions

The dam against electronically caused unintended acceleration in Toyotas that the National Highway Traffic Safety Administration and Toyota built, with outrage, secrecy, pedal interference recalls, and capped with the February 2011 NHTSA-NASA report springs more leaks. The question is: Can they keep it from collapsing entirely?

Safety Research & Strategies continues to examine information showing that unintended acceleration still plagues Toyota vehicles and that many incidents cannot be explained by floor mats, bad drivers and sticky pedals. Recently, the Department of Transportation settled a Freedom of Information Act (FOIA) lawsuit with SRS, agreeing to turn over investigatory documents, videos and photos related to the agency’s involvement with a 2011 recall of Toyota and Lexus models for alleged accelerator entrapment by interior trim. (The agency also agreed to pay our lawyer’s fees – this from the Most Transparent Administration Ever.)

The recall was precipitated by the Timothy Scott incident. Scott is a former 2007 Lexus RX owner who reported a frightening UA event as he headed home from the gym one morning. In short order, Toyota bought Scott’s vehicle, and pronounced it a case of trim interference. NHTSA never looked at Scott’s Lexus, but began to investigate this root cause in other vehicles. Within six weeks, Toyota recalled the vehicles and NHTSA was all done.

We were eager to see just what the agency found out about the possibility of trim interference as a root cause of UA and what it didn’t want to show us– enough, at least, to try to stash it behind Exemption 5 of the FOIA, which protects agency deliberations. Imagine our amazement when the videos – sans audio- appear to show that the Lexus RX trim does not interfere with the accelerator -- or, not without a lot of manipulation of exemplar vehicles. We are no closer to understanding why NHTSA dropped its investigation, or how trim interference can cause a UA like Tim Scott experienced, or, more importantly, why we had to sue the DOT to get this.

Updated Toyota Report: The Recall Ate My Floormat!

Well, here we are, 14 months after Toyota began admitting to the world that it could no longer design a simple pedal, a floor mat or a floor pan, by launching Phase I of many phases of a recall to replace all-weather floor mats that may entrap the accelerator. Initially, the recall 90L, the mother of all floor mat recalls, was meant to switch those sneaky little All-Weather Floor Mats out of 3.8 million Toyota and Lexus vehicles.  (See  Toyota All-Weather Floor Mat Entrapment)

Another Toyota Verdict Is In

It took a hot New York minute for Toyota to announce on its website that it had won a “key” unintended acceleration case. Today, a New York jury in the Eastern District of New York delivered a favorable verdict to Toyota in the case of Dr. Amir Sitafalwalla, who claimed an errant floor mat responsible for the crash of his 2005 Scion.

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