Tag Archives: Toyota

Toyota Recalls and the Dept of Transportation

Transportation Secretary Ray LaHood

Ray LaHood

“Safety is our No. 1 priority when it comes to planes, trains and automobiles,” said Dept. of Transportation Secretary, Ray LaHood, in his interview with George Stephanopoulos on ABC News 2/10/10. Secretary LaHood also said,

“I’ve been in this job a little over a year. On my watch,  we have not been asleep at the switch when it comes to Toyota.

“There are three recalls going on right now, two of them as a result of our people either going to Japan or me on the telephone with the president of Toyota holding their feet to the fire on this.”

Stephanopoulos also rolled tape of Joan Claybrook, who served as head of the National Highway Traffic Safety Administration under President Carter, alleging that  some of the problems at Toyota were known before 2007. While Secretary LaHood did not openly criticize the DoT under the Bush Administration, he made it clear that the DoT in the Obama Administration is focused on safety.

“We feel a strong obligation to the driving public … to make sure that every car is safe. …  We are holding Toyota’s feet to the fire to make sure that every car is safe.”

Links:

Toyota Recall: Instructions and Observations

2009 Corolla Sedan

2009 Corolla Sedan

If your car is accelerating out of control, whether it’s a Toyota, a BMW, or any car,

  1. Put your foot on the brake – and press the brake with a steady pressure.
  2. Put the car in Neutral. (Just like manual tranmissions, automatic transmissions have a “Neutral” setting. You shouldn’t drive if you don’t know this.)
  3. Turn on the Hazard lights.
  4. Pull over.
  5. and Above All,Don’t Panic.

Putting the car in “Neutral” disengages the transmission from the accelerator, assuming there isn’t a transmission problem. Don’t turn off the engine: you will lose the ability to brake and steer. Don’t put the car in “Park.” It will slam to a halt, throw you and your passengers against the steering wheel or the windshield, damage the engine, and you will be rear-ended by the jackass tailgating you.

It also works regardless of what is causing the problem – and it might not be because of sticky accelerators. Writing in the LA Times, Jan 30, Ralph Vartabedian and Ken Benslinger, note that:

The pedal maker denies that its products are at fault. Some independent safety experts also are skeptical of Toyota’s explations. ‘We know this recall is a red herring,’ one says.

Federal vehicle safety records reviewed by The /LA/ Times also cast doubt on Toyota’s claims that sticky gas pedals were a significant factor in the growing reports of runaway vehicles. Of more than 2,000 motorist complaints of sudden acceleration in Toyota and Lexus vehicles over the last decade, just 5% blamed a sticking gas pedal, the analysis found.

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Tipping Point for Gas?

Peter Gosselin, writing in the Business Section of LA Times, Saturday, May 24, 2008, writes that Ford, GM, and Chrysler are in serious trouble because of the price of gasoline. He quotes Robert DiClemente, chief U. S. economist at Citigroup in New York “The economic outlook has been taken hostage by the relentless surge in oil prices.” Gosselin adds that Ford Motor Co announced Thursday, May 22, 2004, that it was abandoning any hope of making a profit this year or next now that sales of its gas-guzzling pickup trucks and Explorers have plunged.

Gosselin and Bill Vlasic, writing in the(Click here) (or here for New York Times home)quote Ford CEO Alan Mulally saying the auto industry has “reached a tipping point” where energy costs were fundamentally changing what kind of vehicles Americans buy.

While Gosselin and Vlasic write that Ford, GM, and Chrysler are in trouble, Toyota and Matsushita Electric are investing US $192 Million / 20 Billion yen to build plants to manufacture batteries for hybrids (Click Here).

You can see this by looking at the stock value of these companies. An investment of $2,000 in Ford and General Motors, on Dec. 24, 1999 would be worth Toyota and Honda would be worth about $540 today, not counting the value of any dividends paid, as both Ford and GM lost 73% of their value. On the other hand, An investment of $2,000 in Toyota and Honda stock on Dec 24, 1999 would be worth about $2,860, not counting any dividend payouts because Toyota increased 11.36% and Honda increased 72.53%. These data can be found on the Google financial pages, (click here).

Date Investment 12/2000 5/2008 % Change
Toyota $1,000.00 $1,113.60 11.36%
Honda $1,000.00 $1,725.30 72.23%
Ford $1,000.00 $274.10 -72.59%
GM $1,000.00 $273.20 -72.68%
       
Toyota & Honda $2,000.00 $2,838.90 41.95%
Ford & GM $2,000.00 $547.30 -72.64%

Mr. Gosselin can be reached at Peter.Gosselin (at) latimes.com

(Please Note that I am not licensed to sell investment advice. This should not be construed as such.  It is just an interesting observation. Note also that I have no investment in any of these securities. I do own a ’99 Chevy Malibu and a ’99 Mercury Sable. My next car will get 45 mpg, which means it will probably be a Prius.)