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.

Toyota Lawsuits Wrapped?

Toyota is looking to close out its unintended acceleration crisis, with a speedy resolution to the remaining lawsuits out there. According to news reports, the automaker has been inspired by the Bookout verdict to settle a whole passel of UA lawsuits. Last month, for example, Toyota came to terms with Opal Gay Vance, a West Virginia woman who injured her neck and back, when her 2010 Camry suddenly accelerated, striking a trailer. The confidential settlement forestalled a trial set to begin on Jan. 21. In California, orders from judges in the U.S. District Court in Santa Ana and Los Angeles Superior Court opened the door to settlements in nearly 300 death and injury plaintiffs’ cases.

“We’re glad to see that Toyota has decided to approach this in a systematic and forthright way, and we look forward to seeing most of the pending claims settled in early 2014,” says attorney Donald Slavik of Robinson, Calcagnie, Robinson, Shapiro, Davis Inc. of Newport Beach, CA.

The race to empty the court dockets should not be confused with a conclusion to Toyota’s UA technical problems, which continue unabated. SRS took a stroll through the Vehicle Owners Questionnaire database, looking for 2013 UA complaints and found more than 300. They cover all of the classic scenarios, like this one:

"I backed my 2006 Toyota Corolla into a friend's driveway, and then put the car into drive to straighten it a bit. The car suddenly without warning shot across the street (perhaps at 45-50 mph), went over a 6" high cement retaining curbing, and across a lawn into another driveway. All the while I had my foot firmly on the brake (not the gas pedal). I swerved the wheel to avoid hitting a telephone pole, and the house. I finally got the car into neutral, and at last the brakes engaged, and I was able to stop the car avoiding a pick-up truck in the driveway and a tree. During this entire time the engine was loudly revving. Other than 3 shredded tires and 2 ruined rims, the car seems to be intact. I have contacted Toyota and hope for a successful resolution. The service manager at the dealership where this vehicle was purchased, however, said that since it is not under recall there is nothing they can do. Meanwhile I will be fearful every time I get behind the wheel, which I have yet to do!    3 new tires and 2 new rims is a small price to pay - it could have been my life! Had cars been passing by on this normally busy street, or children walking on the sidewalk on their way home from school - other lives as well could have been taken. This was a terrifying event! Judging from all of the similar stories written regarding this make, model and year, Toyota needs to do a recall to solve this problem once and for all." (ODI 10496026)

The Toyota Claimants Are Getting Restless

The $1.63 billion deal in the Toyota Unintended Acceleration economic damages multi-district litigation worked out between the lawyers for Toyota and Hagens Berman, Sobol, Shapiro, and Susman Godfrey the firms representing 22.6 million consumers is headed for a final approval hearing before U.S. District Judge James Selna  on June 14, and really, who could complain?

Toyota gets to continue to claim that its electronics are just fine while funding research blaming drivers for runaway vehicles that it can stash in its back pocket for future unintended acceleration product liability lawsuits. Some Toyota owners – but not those of the most troubled model years will get a brake override system that sorta, kinda may work sometimes under select conditions (hint—don’t put your foot on the brake first).

There’s $250 million for consumers whose vehicles are ineligible for a brake override retrofit. The cash payouts for those folks range from $37.50 to $125. Let’s see. That ought to cover an oil change, a new set of windshield wiper blades, and a Vente Mocha Chip Frappacino at Starbucks to sip while you wait. Done!

Betsy Spills Toyota’s Beans

To steal a line from Bogie: “Of all the publications in all the websites in all the world, she walks into Corporate Counsel.” She – being Betsy Benjaminson, a freelance translator from Israel who was tasked with translating from Japanese into English documents regarding Toyota Unintended Acceleration. Corporate Counsel -- being the self-described “leading digital destination for in-house counsel to find breaking news and practical information.” And this bit of breaking news? When you lie to the world about an automotive electronics problem that has the potential to result in fatal crashes, don’t expect every underling to keep your secrets.

The story, entitled Is Toyota Telling the Truth About Sudden Acceleration? (Spoiler alert: the answer is: No.) is a fascinating behind-the-scenes look at a company in disarray with a technically challenging problem that its technicians weren’t looking too hard to solve, while its legal and public relations gears clicked into place to drive the denial machine forward. Our favorite:

“Hagiwara and Chris Tinto, a V.P. for technical and regulatory affairs and safety, had been talking about the U.S. investigation and an earlier one in Europe that also involved unintended acceleration (UA).

‘Tinto is extremely pessimistic,’ Hagiwara wrote, ‘and is saying (public hearings, someone will go to jail, I can't completely take care of the pedal problem, etc.).’ Tinto's primary concerns (according to Hagiwara): ‘For NHTSA, we said that our investigations in Europe found that the pedal return is a little slow at a slightly open position, and that there were no accidents, but this is not true. Last year's situation in Europe (many reports of sticking pedals and accidents, and a TI TS9-161 was filed on October 1, 2009) was not reported to NHTSA.’ That failure, Tinto said, ‘may be a violation of the TREAD Act’—the federal law that requires car manufacturers that conduct recalls in foreign countries to report these to U.S. regulators.”

The Pedal Error Error

If the Toyota Unintended Acceleration has taught us anything, it’s the importance of examining NHTSA’s process before accepting its conclusions. The authority of the federal government automatically confers, in large measure, a public (including the mainstream media) acceptance of its pronouncements of scientific certitude. Few take the time to study their foundations. To this end, SRS has devoted more time and resources to obtaining the agency’s original source documents, data and communications around investigations, rulemakings and NHTSA-sponsored reports than we care to count. We have filed numerous Freedom of Information Act requests in pursuit of these informational bases.

Another thing we have learned: NHTSA really doesn’t want the public to know how it does what it does. Our FOIA requests have morphed into FOIA lawsuits (three and counting), as the agency either denies us information that is public or claims to have none, even when the crumbs NHTSA’s FOIA staff toss to us show unequivocally that, in fact, they do have the information.

And that brings us to Pedal Application Errors, NHTSA’s last nail in the Electronically-Caused UA coffin. This report made a number of strong claims regarding who is likely to make a pedal application error and how it is likely to occur. They do not bode well for any woman of a certain age who has the misfortune to be behind the wheel of an electronically caused UA. The report’s writers based on a variety of data sources, including crashes from the Motor Vehicle Crash Causation Survey (MVCCS), the North Carolina state crash database, a media review of pedal misapplication news stories and the insights garnered from a panel of rehabilitation specialists. Naturally, we wanted to look at all these data, and we requested them.

The response from the government, to put it kindly, was less than complete. NHTSA claimed that it didn’t have any of the underlying data, except the list of crashes from the MVCCS. It sent us the transcript of the one-and-a-half day meeting of rehabilitation specialists and Dr. Richard Schmidt, that prodigious peddler of the all-purpose, wholly unsupported and unscientific pedal misapplication theory the auto industry – and NHTSA – loves.

Safety Research & Strategies Takes DOT and NHTSA Transparency Battle to Court; Sues for Toyota Investigation Documents

WASHINGTON, D.C. – Safety Research & Strategies, a Massachusetts safety research firm that advocates for consumers on safety matters, sued the National Highway Traffic Safety Administration today over the release of Toyota Unintended Acceleration investigation documents.

The civil action, filed in U.S. District Court for the District of Columbia (Civil Action No. 11-2165), alleges that the U.S. Department of Transportation and NHTSA violated the Freedom of Information Act by withholding public records involving an unintended acceleration incident reported by a 2007 Lexus RX owner in Sarasota Florida, and requests the court to order their release.

“One of President Obama’s first acts was to issue an Executive Order on transparency and open government, pledging a commitment to creating ‘an unprecedented level of openness in government,’” says SRS founder and President Sean E. Kane. “The DOT and NHTSA have pledged transparency but have consistently kept vital information from the public.  The agency’s numerous investigations into Toyota Unintended Acceleration have been characterized by continued secrecy, preventing a full accounting of their activities and the complete replication of their analyses by independent parties.  This lawsuit asks the court to compel the release of documents that are relevant to a significant safety recall.”

NHTSA-NASA Reports Show That Toyota Electronics are Deficient – Can Lead to Unintended Acceleration: Toyota’s Involvement Exposed in New Documents

REHOBOTH, MASS – The Safety Record, Safety Research & Strategies’ watchdog publication, published its new findings on the National Highway Traffic Safety Administration (NHTSA) and the NASA Engineering and Safety Center (NESC) reports on Toyota Unintended Acceleration.  Following extensive review of those reports and previously unavailable documents recently released by NHTSA and interviews with numerous scientists and experts, the authors found that:

  • - NASA identified numerous failures in Toyota electronics that could lead to unwanted acceleration.
  • - The report was heavily influenced by Toyota and its experts, including Exponent.
  • - The reports were narrowly construed examinations of limited vehicles and components.
  • - Much of the reports remain shrouded in secrecy.

What Got Stuck in NHTSA’s Craw

More than a year ago, NHTSA whomped Toyota upside the pocketbook with a $16.4 million fine for failing to recall 2.3 million vehicles with defective accelerator pedals. It was just slightly more than chump change to billionaire Toyota, but at the time, everyone gasped at the largest civil penalty the agency had levied against an automaker –ever.

As described by Toyota, the so-called sticky pedals, manufactured by supplier CTS, were slow to return to idle and could become stuck in a partially depressed position. Just for the record, we’d like to remind our readers that the SRS has always argued that a sticky pedal has nothing to do with unintended acceleration--which is not to say that this problem isn't a safety defect -- it just doesn't lead to the type of unintended acceleration incidents reported by drivers.  But NHTSA and Toyota have always enjoyed conflating the two, without offering any evidence that sticky pedals cause unintended acceleration events. It gave the appearance that all concerned were actually doing something about the problem.

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