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Posts Tagged ‘Defective Toyota vehicles’

Toyota Recall Lawyers: Toyota Avoids Recall of 750,000 Matrix & Corolla Vehicles

Defective Toyota vehicles, Toyota recall, Toyota Recall Attorneys, Toyota recall lawyers

July 16th, 2010: Law Blogger

toyota recallThis was not a good week for Toyota. In fact, the whole year has been one big stink cloud following them around with the occasional pungent downpour. It was a year of record breaking for them, but nothing to shake the pom-poms over.

First it was the 8.5 million car recall for sudden acceleration problems, the largest auto recall in history. Then the National Highway Traffic Safety Administration (NHTSA) found out that they actually knew about the problem and tried to hide it. That led to another record breaker, a $16.4 million fine, the largest ever levied on a car manufacturer.

Then came the minor problems such as “fixing” cars accelerator pedal at dealerships just to have the vehicles suddenly accelerate, sometimes only a day or two after the fix was made. Of course, this is not to mention that multiple independent experts who have demonstrated that the problem is actually a software problem.

Toyota has dismissed the independent research. Instead, they chose to address the untested and unproven cheap $1 floor mat replacement.

As if that didn’t show how much they love their customers, on Wednesday of this week they made a couple of shocking announcements. One, based on a rumor that the NHTSA has found a few of the sudden acceleration incidents were caused by people’s feet slipping from the brake onto the accelerator, Toyota spokesmen fell over themselves to get onto the microphone and announce that “virtually all” sudden acceleration incidents were caused by “user error.”

The announcement brought a 4% raise in stock prices, but as any person over the age of 6 will tell you, blaming the customer for your problems is not the best business model.

Also on Wednesday they announced that through customer complaints to both the NHTSA and their internal customer service that they had found another serious problem in nearly ¾ of a million more cars, but have opted NOT to recall the cars.

Why? Read on.

Toyota Recall

Toyota Steering ColumnToyota is telling federal regulators that a steering problem that could affect 749,685 Corolla and Matrix models isn’t a safety defect, thus no recall is required. If the National Highway Traffic Safety Administration agrees, it would save Toyota from pushing its worldwide safety recall total in the past year to nearly 9.25 million vehicles.

In February, the NHTSA opened an investigation into 2009 and 2010 Corolla and Matrix models after receiving 168 reports that the electric power steering in the vehicles was prone to drifting or locking up, especially at highway speeds.

In response to NHTSA, Toyota said that it had 437 reports of steering problems covering 395 vehicles, including 11 injuries in 18 crashes. That’s 437 times that Toyota violated the NHTSA requirements that they inform them of complaints within a week of the complaint.

Toyota Spokesman Brian Lyons said Toyota told NHTSA of its steps in late May. The agency has kept its probe open and did not comment on its status.

Lyons went on to say that the company believes most of the complaints involved wandering from the on-center steering position that didn’t amount to a safety problem. “We see this as a customer-satisfaction issue.”

Toyota spokesmen are so cute aren’t they? If you’re steering wheel locked up and suddenly made it impossible for you to control the direction of the car while you drove 60 mph on the freeway would you a) consider it a “customer satisfaction” issue or b) be in fear of your life or ever getting into your car again.

I don’t know about you, but option ‘b’ sounds reasonable under the circumstances.

Toyota Recall Lawyers

Toyota issued a bulletin to dealerships in June telling them to address complaints by checking the tire pressure and alignment. If that was insufficient, the bulletin told dealers they could replace the computer that governs the electric power steering with a unit Toyota said had been “re-tuned” with an “alternative steering feel.”

That’s fantastic, but that doesn’t address the real problem, which is the fact that, without a recall, Toyota customers have no idea that their Matrix or Corolla has steering problems that could potentially endanger not only their lives, but the lives of all of the people in the cars around them.

This is really indicative of the overall deceptive behavior by Toyota to salvage what little credibility they have and in the process have destroyed their credibility. Regardless, we urge you, if you own a Matrix or Corolla, to call your local dealership and get the vehicle fixed as soon as possible.

If you or someone you know has been effected by the steering on the Toyota Matrix or Toyota Corolla locking up resulting in a car accident or serious personal injury then it is very important that you find an attorney with experience in product liability that can represent you and assure that you get the compensation you deserve. Call Phillips Webster for a free consultation and to find out your legal options.

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Toyota Recall Lawyers: Toyota Blames Driver Error For “Virtually All” Sudden Acceleration Problems

Defective Toyota vehicles, Toyota recall, Toyota Recall Attorneys, Toyota recall lawyers

July 14th, 2010: Law Blogger

toyota recall lawyersToyota is in the throws of a self-esteem problem with their investors and consumer confidence. They are scratching for any kind of validation or even a modicum of good news and perhaps today they found it…almost.

Soon to be released results of tests conducted by the US Department of Transportation (DOT) suggest that Toyota may not be entirely to blame for some of the accidents resulting from sudden acceleration of their vehicles. The tests suggest that some Toyota vehicle owners, who claim that their vehicles surged out of control, could have accidentally rammed the accelerator when they meant to brake.

This news prompted Toyota spokespeople to clamber to the microphone to give the media, their customers, and of course the only people that matter, the investors, the stupendous news: it was all 10 million Toyota owner’s fault.

Toyota spokesman Mike Michels said, “pedal misapplication” was the cause in “virtually all” cases of unwanted speeding. The company said it will install brake-override software, a technology designed to stop a car if the brakes and accelerator are applied simultaneously, in all new vehicles by model year 2011.

That kind of over ambitious grandstanding might give the average person chills, but looking at the reaction of the stock market, it seems that there are some very gullible stock traders out there.

Testing Toyotas

toyota engineTo aid in the investigation looking into the sudden acceleration problems, Toyota also said it has provided NHTSA and its Canadian counterpart with data recorders and sufficient evidence collected from the 2000 on-site tests and inspections. This is odd since Toyota has been very protective of its “black box” data recorders (as reported earlier in this blog) and does not allow enough information to be collected to determine liability.

But Toyota has insisted that their testing has been stringent. The company said its internal tests include bombarding vehicles with electromagnetic interference at more than twice the level that would occur in real-world conditions, line-by-line evaluation of system software and testing of vehicles in laboratories that replicate hurricane-level rain and excessive heat and cold. The results strongly suggest that Toyota vehicles are not at fault for most cases of sudden acceleration, the company said.

These tests suggest that neither solar flares nor extreme weather are to blame for the sudden acceleration issue. So then it HAS to be user error right? That’s faulty logic. Since the issue was first blamed on floor mats, then went to the pedal itself, and independent researchers have found that it most likely is a software problem and simulated it many times in separate trials, it’s obvious that Toyota is looking for a scapegoat. The cheapest scapegoat possible, their customers.

Toyota Lawsuits

Industry analysts have criticized Toyota, saying the findings, even if true, don’t exactly let the company off the hook from liability. According to IHS Automotive analyst Rebecca Lindland, Toyota simply can’t exonerate itself by suggesting that driver error was behind the accidents.

“I don’t think anything can be gained by pointing the finger at the consumer at this point. Plus, electronic issues are always difficult to pinpoint,” Lindland said. “Toyota definitely isn’t in the clear yet.”

Andy Chou, chief scientist with Coverity, a company that tracks down defects in software programs, is also skeptical about Toyota’s reaction and their sudden willingness to discount other solutions.

“It’s very hard to rule out software as a cause,” Chou said. “I don’t think by looking at a little bit of data you can rule out a software defect.”

The problem with the software problem for Toyota is that it is the most expensive problem to fix and, if found to be true, could leave the company wishing that a $1 floor mat had been the problem rather than foolishly blaming their customers for their problems.

Regardless, the announcement made Toyota stock go up as investors were relieved to learn that DOT findings could indicate that drivers are vicariously liable for the string of crash deaths reported. There have been 80 reported deaths since 2000 connected to the sudden acceleration issue.

In the face of the investor’s morbid elation, we on the other hand are very concerned that Toyota’s are still rolling off of the lot with serious product defects. Some of the Toyotas that have been “fixed” as part of the recall have been confirmed to have displayed the same acceleration problems as soon as days after leaving the dealership.

Though there are also more than 200 lawsuits against Toyota for various things, personal injury lawsuits, value based lawsuits, and wrongful death lawsuits are just some of the categories.

If you or a loved one has been affected by the Toyota recall, then it is important that you call an experienced defective products attorney with a successful record of defective design lawsuits. Call Phillips Webster for a consultation.

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Toyota Recall: Lawsuits and Accusations of Cover-ups Loom

Defective Toyota vehicles, Toyota recall lawyers

March 11th, 2010: Law Blogger

Ray LaHoodValuable foot traffic declines at dealerships on rainy days. Now, rain or shine, clouds are looming over Toyota. They desperately try to apologize and advertise their way out of it. It seems on a daily basis there’s a new PR campaign to bail water out of sinking reputation and every day there’s another story filling the boat up again.

The stories are like lightening strikes and the Congressional hearing just concentrated them so that the seemingly impossible happens; all of the lightening strikes in the same place. And right in front of the eyes of the congressional panel and National Highway Traffic and Safety Administration (NHTSA) chief Ray LaHood.

There are harrowing descriptions of sudden acceleration to the panel, Toyota says there is no evidence and denies the existence of the problem, and then the denied problem happens to a Prius owner on a highway in California for all to see and exactly the way witnesses described.

Now the lawsuits mount, an estimated $3 billion dollars worth, and there’s no stopping them. Independent research has begun to plague Toyota and there isn’t anything they can do but try to advertise and yell over it.

Toyota Alleged Cover-up

Dimitrios BillerDimitrios Biller was a loyal Toyota employee for a long time. As a corporate lawyer he diligently defended the company in product liability and negligence cases from 2003 to 2007. His loyalty, of course, was well founded in his $4 million severance package when he quit 3 years ago. But despite the large payout, he also carted away with him 6000 potentially damning documents that have now been subpoenaed and passed along to the Congressional committee investigating the recall.

Biller is also personally entangled in litigation with the auto giant. He says he quit because of what he alleges were “criminal acts” by Toyota — specifically, withholding information the company was legally required to turn over to plaintiffs’ lawyers during litigation.

“There is a regular pattern and practice of not producing memos, minutes, reports, and e-mails,” Biller said. “These documents can be used to establish liability against Toyota in product liability and negligence cases.”

That type of allegation could potentially yield criminal charges if what Biller says is true.

The chairman of a U.S. House committee investigating Toyota, Rep. Edolphus Towns, D-New York, has reviewed the documents. There are numerous references to so-called “Books of Knowledge,” which are highly confidential internal data on design, safety systems and testing records allegedly generated by Toyota engineers. The data covers everything from roll-overs and roof safety to sudden unintended acceleration.

Edolphus agrees with the damaging assessment of the documents saying Toyota has engaged in a “systematic disregard for the law and routine violation of court discovery orders in litigation.” He goes on to say, “The material, I must admit, is very, very disturbing.”

These Books of Knowledge were never revealed because Toyota was deliberately keeping them safely in Japan and out of the US court system by paying premium settlements before the Books were subpoenaed to be brought in front of a US court of law.

But the problem is that the materials did get called to be brought in front of a judge and Biller was specifically ordered not to provide them. He, of course, agreed so to protect his client.

Toyota insists on calling the materials “trade secrets,” said Biller’s lawyer Jeff Embry. “That doesn’t mean that you get to keep them a secret from the court system.”

Toyota spokeswoman Cindy Knight responded by releasing this statement: “Mr. Biller continues to make inaccurate and misleading allegations about Toyota’s conduct that we strongly dispute and will continue to fight against vigorously.”

Toyota Recall Lawsuits Come From Surprising Place

Product Liability LawyersThe personal lawsuits regarding the recall are now at 89 according to the Associated Press. Experts say that this could translate into $3 billion dollars worth of losses or more worth of just judgments and settlements, not to mention the hard costs.

These lawsuits are associated with the recall, but not with regards to the actual problems which were the motivation behind the recall. No, the majority of these lawsuits are related to resale value.

Toyota commercials, particularly run by local dealerships, touted thousands of time the resale value of Toyota being the highest in the industry. There is a popular notion that cars begin depreciating in value the moment you drive them off of the lot and that notion seems to be pretty accurate. That’s what makes cars a “Depreciating Asset” or an asset that loses value over time.

To off set this depreciation many Toyota drivers were attracted at the prospect of getting the maximum value they could for their return, which is understandable, since many of them paid for the total value of the car twice over in interest anyway.

Tom Baker, a University of Pennsylvania law professor, told the Associated Press, “A super-big injury case would be $20 million. But you could have millions of individual car owners who could (each) be owed $1,000. If I were Toyota, I’d be more worried about those cases.”

Yes, but Prius’ and other Toyota models are still accelerating out of control. One happened on Sunday to Prius owner James Sikes and now another happened just yesterday resulting in a knee injury accident.

Police said a 56 year-old woman was about halfway down the driveway of her employer’s house at about 7:45 a.m. when the Prius sped up on its own. The car hit plowed through a metal fence, jumped a curb and traveled across a busy two-lane road before hitting the wall. The crash dislodged large boulders and caused the air bags to deploy. The impact flung the huge boulders 10 to 15 feet.

Ironically, the driver was on her way to an appointment with the Toyota Dealership.

Toyota Addressing Wrong Problem

Toyota RecallsToyota claimed recently in a commercial that they are working 24/7 and fixing 50,000 cars per day. The question is that are they fixing the right problem?

The NHTSA is investigating claims from more than 60 Toyota owners that their vehicles continue to surge forward unexpectedly despite having their accelerator pedals replaced at the dealership after receiving a recall letter.

Toyota denies that its electronic throttle is to blame and has been focused on dealing with the recalls. As private research mounts against this notion, their strategy could backfire in court.

“Toyota’s strategy (should be) to fix them, fix them immediately and at no cost, and do it as quickly and effectively as you can so after the dust settles, your car’s value won’t have depreciated much,” said Edward C. Martin, a law professor at Cumberland School of Law at Samford University in Birmingham, Ala.

“We do not believe that electronics are at the root of this issue,” Toyota spokesman Mike Michels said Monday.

That is the type of attitude that got them into so much trouble. They are still hiding behind their Book of Knowledge which at this point has been opened and displayed for all to see.

Toyota Liability, Insurance, and Settlements

With all of this bad press and Toyota denying their place in the mess rather than taking the research to heart and actually fixing the actual problem it seems that the people that suffer the most are the customers.

The NHTSA has estimated 56 deaths due to sudden acceleration in Toyotas over the past five years. Tat translates into hundreds of injuries and millions of dollars worth of damage. As people investigate into the demise and injury of loved ones who drove Toyotas, the lawsuits will mount. Not to mention inquiries into insurance payouts by the insurance companies. If Toyota is found to have covered up the information, you can only guess the amount they will have to pay insurance companies.

If you or a loved one have been affected by the Toyota Recall, it is important that you have experienced Defective Product Liability council on your side to protect your rights and show you your legal options. Call Phillips Webster today for a consultation.

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Toyota Hits Hot Seat and Gives Contradictory Testimony

Defective Toyota vehicles, Toyota recall, Toyota recall lawyers

February 25th, 2010: Law Blogger

ToyotamonialToyota’s President Akio Toyoda concluded his trip to Washington this morning by meeting with U.S. Transportation Secretary Ray LaHood. Mr. LaHood criticized Toyota for moving too slowly, both in addressing safety concerns and in giving U.S. regulators information they wanted about the company’s vehicles. LaHood also boldly criticized the auto maker for being “safety deaf” in congressional hearings earlier in the week. Why did he have to act so bold? Because as previously reported in this blog, his agency was not only safety deaf, but also “safety blind” and “safety mute”.

“Their meeting was productive and focused on the importance of safety and working cooperatively to protect consumers in the U.S.,” a Transportation Department spokeswoman said after the half-hour meeting.\

According to USA Today, Toyota said in a statement that the two men “had a cordial and open discussion.”

In the face of an 8 million plus vehicle recall, a safety cover-up, hundreds of lawsuits from injured Toyota owners, and a possible Federal Department of Transportation scandal, I suppose a thirty minute meeting should do it. Actually, thirty minutes isn’t enough time to commiserate properly. Thirty minutes is about as much time it should take to get a few good pictures and forget this ever happened. But it did…and it’s still going.

Toyota Gets Grilled in Congressional Testimony

Aiko ToyodaMr. Toyoda was on the hot seat yesterday enduring hours of criticism from members of a U.S. House panel for safety problems that have been linked to 34 fatalities in accidents involving sudden acceleration.

Mr. Toyoda apologized, and said the company is committed to changes in its products and management to prevent future problems, which, according to a statement released by Toyota today shows that Mr. Toyota misled legislators by saying that. Read on to find out why. First, Jim Lentz, head of the North American auto division gave testimony on Tuesday.

Jim Lentz told the House Commerce Committee that fixing the floor mats and sticky gas pedals on Toyotas would not totally solve the problems with sudden acceleration. This insinuates that there is an electrical or software problem.

This is the first admission by the top company brass that there might be some other explanation for the thousands of incidents of sudden acceleration reported to federal officials.

Toyota Clarifies Top Executives Little White Lies

Jim LentzOf course, then Yesterday while their CEO was speaking, Toyota turned around and released a ‘clarification’ of Lentz’s testimony the day before that says his statement does not reflect any change in the company’s “official stance”.

“Contrary to some press reports,” said the statement, “Jim Lentz’s testimony to Congress did not reflect a change Toyota’s position regarding whether its recalls effectively address unintended acceleration issues in certain Toyota and Lexus vehicles.”

To clarify, Toyota is still on the fence as to whether they’re going to admit to an acceleration problem. As reported by the Phillips Webster Blog last week, their tests, as skewed as they are, aren’t revealing the problems. It seems, they have no idea as to what the cause is.

The statement goes on to prove this by saying that Toyota is “confident that no problems exist with the electronic throttle control system. We have designed our electronic system with multiple fail-safe mechanisms to shut off or reduce engine power in the event of a system failure. We have done extensive testing of this system and have never found a malfunction that has caused unintended acceleration.”

Toyota Enters a New Era? A “Whistleblower” Comes Forward

Today following Mr. Toyoda’s departure from Washington, Toyota released another statement.

“Mr. Toyoda promised to take the initiative to advance safety to the next level,” the company said. “He reiterated his focus on putting customers first and making sure that going forward the company will do all it can to further improve communications and work more closely with the department.”

Toyoda only ascended to the automaker’s top job a year ago. He is the grandson of Toyota’s founder Kiichiro Toyoda. Some people are hopeful that he will restore the old Toyota. Perhaps he’ll restore it to it’s hay-day in 1986 when there was a massive recall of Toyotas for, oh my goodness, accelerator problems.

Jim Press, an executive in the North American Toyota division sent a “whistleblowing” email to Automotive News. In it, he says Toyota had become dominated by “anti-family, financially oriented pirates.” He added that only CEO Akio Toyoda can rescue the automaker.

“Toyota doesn’t want me to speak out, but I can’t stand it anymore and somebody has to tell it like it is,” wrote Press. The hijacking, as he describes it, at the root of Toyota’s problems.

Allow me to speculate as to “who” Jim Press is. If you have ever spent time in a board room you know that there are a ton of Jim Press’s. He did three things here:

  • Threw his immediate bosses under the bus.
  • Praised his Japanese boss.
  • Got some press as a “rebel” with the consumer in mind.

Jim Press also told everyone around him to “watch your back when you’re around Jim Press.”

What Mr. Press fails to realize is that his beloved Mr. Toyoda was head of the company when they decided to cover up the safety problems. Or perhaps Mr. Press was just planted by Toyota PR as a stunt to bolster confidence in Mr. Toyoda. Who knows.

Toyota Owners Caught in the Middle

These congressional hearings will continue when they hear from other Japanese executives, most likely the people who are going to take the fall if there are any types of charges filed for criminal negligence. As of now, no accusations or charges have been levied or even considered.

Ray LaHood Ray LaHood will also be answering to the panel as to the horrible reaction by the Nation Transportation Safety Board. At the beginning of this article you may have noticed that he’s already begun posturing in the face of this testimony.

Regardless of their testimony, later statements, or the statements of the organizations they represent, all of these people involved have one thing in common. They are very concerned about themselves and their careers. Hopefully not over the safety of the consumer, but in recent actions by both Toyota and NTSB, profit comes first.

That is why it is important that you protect yourself. If you or a loved one have been affected by the multiple problems with Toyota vehicles it is important that you get legal council as soon as possible. Call Phillips Webster for a consultation on your legal options.

Toyota: Terrifying Testimony and Accusations of Fraud

Defective Toyota vehicles, Toyota recall

February 23rd, 2010: Law Blogger

Toyota LawsuitsIf you happened to be listening in the car to NPR this morning you may have heard the harrowing tearful testimony by Rhonda Smith of Sevierville, Tenn. She described her personal acceleration incident in detail to a congressional hearing being conducted today.

She describes how she merged onto the interstate, changed into the middle lane, and set the car on cruise control. The car then began to accelerate. She took off the cruise control. Nothing. She tried all available gears including neutral. The car kept on accelerating past 100 mph. She threw the car into reverse where it remained. She then pulled the emergency brake and stamped both feet down on the brake. The car kept on accelerating. She concluded that she would have to drive her car into a guard rail, possibly killing herself, but avoiding killing others. She prayed. She then activated the convenient blue tooth hands free system standard on most Lexus models to hear her husband’s voice just one last time.

After six miles the car suddenly began to decelerate to 35 mph. Once the car hit 32 mph, she was able to shut off the engine, but all of the engine lights and radio remained on. When her husband arrived he could not find anything wrong with the floor mats (Toyota’s original explanation for acceleration problems).

Hold On, It Gets Weirder.

When the tow truck came, the tow truck driver asked that the car be put into neutral. Of course, none of them wanted to get near the car, but Rhonda’s husband agreed to. When he got into the car he didn’t have the key. Without the key, a person wasn’t supposed to be able to take the car out of park. Not only was he able to take the car out of park and shift it into neutral, but when he did, the engine started on its own and began revving.

The last fact was recorded in a sworn testimony by the tow truck driver.

When she contacted both Toyota and the federal highway safety administration she said that they were very rude to her and actually accused her of making it up. She got very stern in her testimony at this point. She said:

“Shame on you, Toyota,” Rhonda then added a second “shame on you” directed at federal highway safety regulators.

Toyota Also Scares Lawyers

Toyota Tacoma Recall

The congressional panel has subpoenaed documents from a former Toyota corporate lawyer who has an even more damaging story to tell.

Dimitrios Biller headed a legal team defending Toyota in rollover-accident lawsuits. When he left Toyota in 2007 he took some 6,000 internal documents with him. He has since sued the automaker under U.S. racketeering laws, as well as for wrongful termination and emotional distress.

He has said that the documents supported his assertion that the company systematically hid or destroyed evidence of serious safety problems that would have led to costly trials in the United States.

“They think they are untouchable. They think our laws don’t apply for them,” Biller said of Toyota in an interview with Reuters earlier this month. “The documents I have prove that.”

In a classic dismissal attack, Toyota says that he has no knowledge of what happened at the company after 2007, so nobody should listen to him.

Biller’s lawyer, Jeffrey Allen said, “What his case deals with is the allegations that Toyota has withheld, concealed and destroyed evidence in products liability lawsuits and from the federal government. It doesn’t limit itself to rollover cases.”

Protecting Yourself From Injury or Death

If you or a loved one own a late model Toyota and have had brake, accelerator, rust, or other mechanical problems in any of these models:

  • 2009-2010 RAV4
  • 2009-2010 Corolla
  • 2009-2010 Matrix
  • 2005-2010 Avalon
  • Certain 2007-2010 Camry
  • 2010 Highlander
  • 2007-2010 Tundra
  • 2008-2010 Sequoia
  • 2009-2010 Prius
  • 1994-2010 Tacoma

Call Phillips Webster to review your legal options.

100 Million Reasons Why Toyota Doesn’t Care About Your Safety

Defective Toyota vehicles, Toyota recall, Toyota recall lawyers

February 22nd, 2010: Law Blogger

Toyota recall - Phillips WebsterIf you read this blog regularly you may remember a quote from the editor of Automobile Magazine, Jean Jennings, accusing Toyota of arrogance and not quite knowing the scope of the problems they face.

Guess what? She was right!

Today it was released that in a presentation that was supposedly confidential in July 2009, the accelerator problems were legislative regulatory “wins” for them. Toyota estimated that that it saved $100 million by negotiating with regulators for a “limited recall” regarding their accelerator issues in many Toyota products. The presentation was among thousands of pages of documents provided as a result of subpoenas by the House Committee on Oversight and Government Reform. That is one of three panels holding hearings in the next two weeks on Toyota’s safety problems.

Toyota Spends Millions on PR but the Ads are Just More Blatant Deception

Toyota prayed to the god of the news cycle that a story could come that would take them out of the news. The god responded with a Haitian earthquake. Nothing. Tiger Woods sex scandal. Nada. The Olympics chock full with American dominance and deathly luge tracks. And Toyota still captures headlines. Can they catch a break? Who cares, they don’t deserve a break.

Toyota has a huge PR campaign going on including a television commercial dripping with fake sincerity, claims of rapid response, and good ‘ol raw kneed groveling. The commercial shows guys in greasy overalls and plastic goggles vigorously cranking some part that none of us remember from auto-shop class in high school. The commercial also shows guys in white robes pointing to a white board and calling it “rigorous testing”.

Here’s the problem, they say that they are fixing the problems by fixing up to 50,000 vehicles a day. Where did all of those replacement parts come from? Because the maker of the previously defective parts, CTS, certainly couldn’t have produced that many since the recall started. Plus, do you really want the part manufacturer that caused this whole fiasco making the new replacement parts on the quick? My life is more valuable than that.

On top of that, as reported earlier by the Phillips Webster blog, Toyota says that they hired Exponent, an engineering firm that tested select models for accelerator problems only and, low and behold, they didn’t find any problems. So what “vigorously tested” problems are they supposedly fixing as result of tests that yields no data? Answer: zero.

PR Costs the Consumers: At the Least, Their Money, At the Most, Their Lives

Toyota LiabilitiesAs Jean Jennings said, they don’t understand the scope of these problems. And just like they did initially about the accelerator problems to save themselves $100 million dollars, they arrogantly cut corners and did the least they could to protect you, the customer. Are they are doing all they can now?

The likelihood is very low, because which do you think they are most concerned about crashing, you or their stock? You are a single wreck. They may not know the scope of the recall or their problems as a whole, but they definitely know the scope of your safety as an individual and it is very, very, very small.

Let’s reign in the cost to the consumer at the base level here. If you try to sell your car, the recall is going to be on the carfax and what impact do you think that’s going to have on the resale value. The consumer has already lost hundreds of dollars regardless.

Toyota Answers to Those It Donates Lots of Money

Toyota’s chief executive, Akio Toyoda, is scheduled to testify before the oversight panel on Wednesday. The House Energy and Commerce Committee begins the round of hearings on Tuesday. A Senate committee will meet on Toyota next week.

Today, Toyota reported that it faced two additional investigations related to the acceleration and braking problems that caused recall of 8 million cars. According to a report by Reuters, Toyota has received a Securities and Exchange Commission (SEC) request and a federal grand jury subpoena for documents containing any accounts of acceleration problems.

Toyota and the parts manufacturers associated with the recall received a subpoena from the attorney’s office for the Southern District of New York on Feb. 8, Reuters reported, citing a statement by the company. The S.E.C. request was made on Feb. 19 to voluntarily submit certain documents from the Los Angeles office of the agency. The American unit Toyota Motor Sales U.S.A. separately received a subpoena for related documents, including about the company’s disclosure policies.

Toyota’s Punishment: Less Justice and More Like a Dentist Appointment sans Lollipop

JusticeAll of these panels, committees, and subpoenas are looking for prior knowledge. If it is determined that Toyota had prior knowledge of the problems, that could open them up to countless lawsuits above what they are also facing, plus there may be arrests, heavy handed restrictions, and consumer scrutiny.

What would really happen is that Toyota could throw chunks of the $23 billion in liquidity into the campaigns of the panel members. Then the politicians would look “hard nosed” and Toyota would walk away to resume business. Of course, the manufacturing companies are going to throw themselves under the legislative bus, because if they don’t, Toyota and the rest of the car industry will turn their backs on them. If the automotive industry is nothing, it is notoriously incestuous.

In the New York Times there was this quote today, “Unfortunately, this document is very telling,” Olivia Alair, a spokeswoman for the Transportation Department, said in a statement. “We’re going to hold Toyota’s feet to the fire and make sure they do what’s necessary.”

The old saying goes, “Where there’s smoke, there’s fire.” The smoke must be bellowing from Olivia Alair, because there is no fire under the feet of Toyota. Fire is monetary and regulatory and there will be none. We’ll see whose going to be right. (Note: I am.)

Toyota Says We Shouldn’t Listen to What they Said, but What They Say

In the now notorious document, Toyota said it “negotiated an equipment recall” without a finding of a defect. What it didn’t say was how, when, or whether it actually tested for a defect. Regardless, the negotiation ended up saving the company $100 million. Rather than be required to fix the cars, Toyota recalled 55,000 all-weather floor mats, sold as optional equipment. Apparently these mats could become lodged under the accelerator pedal. It turned out to be the pedal itself.

Toyota also said it had avoided an investigation into the Tacoma Pickup because the undercarriage could rust out. Toyota offered to repair or, in some cases, replace damaged Tacomas built from 1995 to 2004. That covers all Tacomas sold, not a small problem. The undercarriage holds in things like the load in the bed, engine, and the driver as they drive 60 mph on the freeway. Toyota also said it had saved millions of dollars by delaying federal safety rules affecting other models. That’s a lot less concern than they show on their commercial. Hmm.

In a statement Sunday night, Toyota did not specifically address the savings mentioned in the document. “Our first priority is the safety of our customers, and to conclude otherwise on the basis of one internal presentation is wrong,” the company said.

They’re not the same company they were in July obviously. By the way, there have been no reports of anyone being fired as a result of the recall. So, they’re just all changed people? Not likely. If you or a loved one own a Toyota and feel as if Toyota’s problems effect you personally, call Phillips Webster for a consultation on your legal options.

Toyota Recalls Another Model from Their Truck Line; 8000 Tacoma Trucks

Defective Toyota vehicles, Toyota recall, Toyota recall lawyers

February 15th, 2010: Law Blogger

Toyota TacomaThe list of models being recalled by Toyota is growing like an overfed baby. Every time the market thinks that it may be over and that the stock might stabilize a new problem arises and a new recall is announced. Once again it has hit their truck division with the top selling Toyota Tacoma. This for a division that has remained fairly unscathed with the exception of the Tundra.

Toyota Putting PR Before The Well Being of Their Customers

Toyota is getting really practiced at this recall business. They decided to pull a classic political PR move for this one. The recall came out at the end of the day on Friday so that the news cycle and the Olymipics would squash it. This really helps the hemorrhaging, but what it doesn’t do is help the customers that drive the Toyota Tacoma. They also may have been caught up on the Olympic hype and anticipation of starting the weekend. When they got into their Toyota Tacoma on Friday night or this weekend, they may not have known the risk.

Tacoma, a Nice Place to Visit But You Wouldn’t Want to Drive One

The problem with the Toyota Tacoma, as announced by the Toyota Corporation they,

“…told dealers Friday that a crack could develop that could lead to the front driveshaft separating and falling from the truck, causing the vehicle to lose control.”

Falling from the truck? Aren’t trucks supposed to be rugged work vehicles? Here’s a commercial for Toyota Tacoma showing it working in the mud, jumping over mounds of dirt, speeding through snow drifts, and attacking washed out roads.

What ever you do, don’t do any of that.

An Updated List of Recalled Toyota Vehicles

  • 2009-2010 RAV4
  • 2009-2010 Corolla
  • 2009-2010 Matrix
  • 2005-2010 Avalon
  • Certain 2007-2010 Camry
  • 2010 Highlander
  • 2007-2010 Tundra
  • 2008-2010 Sequoia
  • 2009-2010 Prius
  • 2009-2010 Tacoma

Toyota Hires outside Engineering Firm; Deny, Deny, Deny

They announced that they hired Exponent:

“a well-respected engineering and scientific consulting firm, to conduct a comprehensive, independent analysis of Toyota and Lexus vehicles using the ETCS-i system (Electronic Throttle Control System with intelligence) for concerns related to unintended acceleration.”

They went on to say that since February 4th, none of the tests on the Camry and Lexus models have yielded any acceleration issues. So, if they tested 100 cars per day over the last 10 days they have gone through testing 1000 random samples. That means they have hit .0000001 percentile of cars recalled.

A reasonable sample group is 10% and that is an impossible scope. This testing really proves nothing other than Toyota being able to say, “Look, we’re doing something and nothing is happening.” This brand of testing science is fruitless and somewhat unethical. This line of testing is specifically geared to allow Toyota to deny, deny, deny.

8.5 Million Vehicles, But More than Just the Customers are Affected

Georgetown Plant, Kentucky If you are one of the 8.5 million Toyota owners affected by the recalls, you aren’t alone. There are still three production plants stopped and under internal investigation leaving thousands of workers twiddling their thumbs. Often these problems stem from pressure from the top regarding production quotas and cheaper materials which can adversely affect the quality of the product. Yet, it is the workers who will probably end up suffering as plant layoffs follow on the tails of hard financial times.

Protect Yourself

If you find yourself a victim of surges of acceleration, brake problems, brake fluid leak, or any other recall related problems, call Phillips Webster for a consultation to review your legal rights.

New Problems Found In Toyota Prius Not Related To Recall; Accelerator

Defective Toyota vehicles, Toyota recall, Toyota recall lawyers

February 11th, 2010: Law Blogger

Prius Accelerator ProblemsWest Seattle – Toyota Prius’s weren’t built to plow over fence posts and jump retaining walls, but that’s exactly what happened to a man in West Seattle. The undisclosed 71 year-old driver was driving on Feb. 5th, 2009 on Southwest Andover Street when the car suddenly surged forward sending him through a fence post and almost over a stone retaining wall. The driver was not injured, but the front end of the Toyota Prius wound up hanging over the wall precariously. If you have ever been to West Seattle, then you would know that it is a steep climb and if you drive over a retaining wall you are in for a spectacular, all-be-it tragic, death. Regardless, the car was declared by the insurance company a total loss.

Hold On, I Thought the Prius Had Brake Problems…Uh Oh

Up until now the Prius has not been recalled for acceleration problems like the long list of Toyota’s listed in their 8 million car recall. Yet between 2004 and 2010, this is just on of 100 incidents reported in the US alone. This is not a small problem. Why? Because in the West Seattle man’s case the acceleration didn’t happen while he was driving. No, it happened while he was slowly and carefully parking as reported by the Seattle Times:

[sic] the 71-year-old driver reported problems as he slowed his Prius to make a right turn so that he could park in a paved area. As he turned, the driver said he faced a retaining wall with six-foot high chain-link fence. He braked to stop, but reported that the car raced forward, ripping out a fence post. The front of the car went over the wall, leaving chain mesh stretched over the hood and roof.

The driver went on to say, “The dashboard was still lit, and I lowered the electrical windows and yelled for help,” He credited the chain mesh with acting like a “safety net” to slow the Prius and prevent the car from dropping off the wall.

Toyota is Having None of It

According to Brian Lyons, a Toyota USA spokesman the company may only address brake problems reported by drivers of the 2010 Prius models.

Toyota has not found any sticking accelerator-pedal problems in Prius models similar to those that recently triggered the suspension in sales of eight other Toyota models. Lyons said.

“We have a spent a great deal of time and effort looking for problems,”Lyons said.

Advice to Toyota: If you’re in the middle of a scandal, just take your punches now and ask for forgiveness later.

Toyota Has some ‘splaining to Do

If in fact the Prius has acceleration AND brake problems, this could potentially make it, as the term goes, “silent and deadly.” Though often that term is not associated with cars, it could very well be appropriate for the Prius.

We recommend that you DO NOT drive your Prius until you have had a dealership look at it. If you or a loved one have had problems with your Toyota vehicle and you feel as if it has jeopardized your safety or your loved one’s safety it is best to seek legal council to find out your options. Call Phillips Webster now.

Toyota Facing Mounting Suits

Defective Toyota vehicles, Toyota recall, Toyota recall lawyers

February 11th, 2010: Law Blogger

Toyota LawsuitsToyota’s lawsuit trouble just keeps getting worse as people face diminishing returns on the value of their car, regardless of the fact that their acceleration surges, their brakes don’t work, or the drive line tube might rupture on the car they just bought. As stated in Reuters:

Consumer lawsuits seeking economic damages for diminished value or lost use of a recalled Toyota vehicle have been filed in at least 30 states, mostly in federal court, and could end up costing the car maker over $2 billion, Tim Howard, lead counsel for a team of law firms handling about half the cases, estimated.

Soon it will be 50 states because there are Toyotas everywhere. And 2 billion dollars is a low estimate. Most likely it will cost them, over the long run, the most important thing they currently have in the market, confidence.

Toyota’s Sliding…and Just In Time For the Olympics

Are you in the camp that these lawsuits are frivolous? Well, let’s keep in mind that the company knew last November about many of the problems and perhaps even earlier than that. Did a recall come then? No. It took nearly 31 accidents related with these faults since September to budge the vehicular behemoth. Do you think politicians or under funded non-profit consumer groups are going to force them to compensate? No. The only protection the consumer has is litigation. As stated in CNN Money today:

“Lawyers are champing at the bit to get at these guys, and the company has come out and largely admitted mistakes in respect to these issues,” said Craig Hutson, senior investment grade analyst at Gimme Credit, a bond research service firm. ”It’s hard to put a dollar amount on it, but multi-billion dollar costs are not out of the realm of possibility.”

An 8 Million Car Recall Is Bound to “Ding” Your Credit

Companies have credit ratings just like individuals do. Toyota’s credit is about to go from sterling credit to tarnished-and-in-need-of-some-care credit. Moody’s the credit rating agency is contemplating downgrading the beleaguered company.

This is in spite of the fact that they have a $23 billion dollar surplus. Something that neither the mounting lawsuits, lawyers, plaintiffs, and jurists are going to readily forget. Toyota has had a meteoric upsurge dominating the competition on every level. But look at the list of recalls:

  • 2009-2010 RAV4
  • 2009-2010 Corolla
  • 2009-2010 Matrix
  • 2005-2010 Avalon
  • Certain 2007-2010 Camry
  • 2010 Highlander
  • 2007-2010 Tundra
  • 2008-2010 Sequoia

Notice that the list goes back a half a decade and keep in mind that they started selling the 2005 cars in early 2004. If it is found that they knew about these faults that long ago and did nothing about it, it will take them at least five hard years to recover.

Next Year Might Be the Time to Buy A Toyota, This Year, We Sue

Would a company build a defective product after a massive scandal like this? Not likely. You never know, they might actually do what their advertising says, “We build the most reliable cars, blah, blah, blah, resale value, blah, safety rating, blah-de-blah.” Until then, if you own a Toyota, I would call your dealership today and make an appointment. Then park the car until your appointment. Then drive very cautiously to the dealership.

If you or any of your loved ones are affected by these serious problems in Toyota vehicles call Phillips Webster. Find out your legal options. It is the best way for you, the Toyota owner and driver, to be heard. Call Phillips Webster today.

Toyota Recall Reaches 8 Million Cars; Two Recalls In One Day

Defective Toyota vehicles, toyota, Toyota recall, Toyota recall lawyers

February 9th, 2010: Law Blogger

Toyotal RecallToyota’s news is just getting worse. According to Business Week the number of class action lawsuits has hit 41 and around the world there are millions of Toyota owners riding the bus.

The first announcement of 437,000 Prius and Lexus vehicles and now 7300 of Toyota’s top selling Camry for what National Highway Traffic Safety Administration calls,

“a power steering hose that is too long and can rub up against a tube for the left rear brake. That could cause the brake tube to wear through, leading to a leak of brake fluid.”

Sounds nitpicky, but once Toyota slid under the microscope everyone wants a peek into the lens. Bloomberg is reporting a 2 billion dollar loss. That’s broken down into 1.12 billion dollars in warrantee loses (times that people use their warrantee when they wouldn’t have even thought about their warrantee until it had already expired) and $875 million in lost sales.

Don’t let those tears fall for Toyota quite yet because they also reported to have approximately 23 billion dollars in cash lying around. That should be more than enough to get them over this hump. Or will it?

The problem with making hundreds of commercials not only touting the quality of your vehicle, but also the fabulous resale value, is that there are people who bought your vehicle for one reason: resale value. That’s where some of the afore-mentioned 41 (and counting) class action lawsuits are coming from. That means that 23 billion dollars, which was once referred to as “profit”, now begins to slip away.

It doesn’t stop there. Their stock is steadily falling, down ten dollars and projected to keep on declining. Today it closed up 1.75 (2.40%). That’s the optimism of the market. But as they see liquidity start leaking, then Toyota could join it’s rival Honda in the $35 per share range. Or perhaps sink further into Ford’s $12 range. And of course, the impossible could happen, and Toyota could drop into the GM stock category, which happens to be currently trading at 75 cents per share. But that’s highly doubtful. They’ve been called arrogant, but they’re not that badly run.

8 million cars means a long line to the dealership, so reserve your spot now. If you have another car, then drive it and park your new Toyota until your appointment. If you find yourself a victim of surges of acceleration, brake problems, brake fluid leak, or any other recall related problems, call Phillips Webster for a consultation to review your legal rights.