Toyota Blog
Report: Southeast Toyota dealers pull ads from local ABC stations citing "excessive stories" on recallFiled under: Marketing/Advertising, Toyota 
Southeast Toyota, which is the largest franchised distributor of Toyota vehicles in the world with 173 dealers in Florida, Georgia, Alabama, North Carolina & South Carolina, has reportedly pulled all of its advertising from local ABC stations. Why? Apparently, the group decided that the television stations were airing "excessive stories on the Toyota issues" by ABC News and its chief investigative correspondent Brian Ross.
So, where is all that latent advertising money going now? According to one unnamed ABC station manager, Southeast Toyota's commercials were shifted to non-ABC stations "as punishment for the reporting." We have to wonder if those non-ABC stations aren't covering the Toyota recall issue with as much fervor?
Marcia Owens-Reder, senior vice president at Atlanta-based 22Squared, the advertising agency that handles the account for the dealers, said in an email to the ABC stations, "We have counseled the client on the pros and cons of this, and ultimately it was their decision to make." Thanks for the tip, Rene!
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[Source: AFP via Yahoo | Image: David McNew/Getty]Report: Southeast Toyota dealers pull ads from local ABC stations citing "excessive stories" on recall originally appeared on Autoblog on Mon, 08 Feb 2010 20:15:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | CommentsPatent drawings reveal Toyota's next concept?Filed under: Concept Cars, Hybrid, Sedan, Hatchback, Lexus, Toyota, Electric
It would seem that Toyota has an interesting and hitherto unknown concept vehicle up its sleeves, judging by a European patent that L'Automobile in France was somehow able to dig up. Despite our best efforts, we weren't able to locate the actual patent filing ourselves, so you'll have to head on back after clicking here to see the rest of the associated images.
So, what do you think? Judging by the absolutely minuscule engine compartment and Toyota's well-earned position at the top of the hybrid vehicle food chain, it would be a reasonable assumption to conclude that this is some kind of new hybrid vehicle concept. It does seem to share some design cues with the 2007 1/X concept, though it could also be an all-electric, fuel cell or conventional design.
L'Automobile seems to think that this vehicle may wear a Lexus badge and could possibly debut at the upcoming Geneva Motor Show, but we can't say for certain. In any case, it's an intriguing design that shows what styling direction the Japanese giant may take with future people movers.
[Source: L'Automobile (translated)]Patent drawings reveal Toyota's next concept? originally appeared on Autoblog on Mon, 08 Feb 2010 18:21:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | CommentsReport: Toyota to extend recall run to Prius and Lexus HS over braking issueFiled under: Hybrid, Sedan, Recalls, Safety, Hatchback, Lexus, Toyota 
2010 Toyota Prius - Click above for high-res image gallery
While Toyota still hasn't officially recalled the Prius, they have admitted the world's most popular hybrid has potential brake problems. The company is now also looking into whether the Prius' country club cousin, the Lexus HS250 hybrid, and the Japan-only Sai hybrid, which is based on the HS, might also need their brakes fixed. As of yet, nothing has been decided, but we expect more news soon.
It's also being reported by the Japanese media and The New York Times that Toyota will issue a global recall for the Prius early this week, and Automotive News reports that the car's brake problems will be fixed with a software update to the anti-lock braking system. With news of the Prius' brake problems spreading, reports of problems are increasing dramatically. While there were just over 100 complaints lodged with the National Highway Traffic Safety Administration as of last week, there are now over 800, a good sign that Toyota needs to do something, and soon.
[Sources: New York Times,
Automotive News - Sub. Req'd]
Report: Toyota to extend recall run to Prius and Lexus HS over braking issue originally appeared on Autoblog on Mon, 08 Feb 2010 11:26:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | CommentsOpportunity Knocks: Stefan GP and Toyota prepare for another team's failureFiled under: Motorsports, Hirings/Firings/Layoffs, Toyota, Racing 
Stefan GP brokers a deal with Toyota Racing - Click above for high-res image gallery
Some people just won't take no for an answer. That sense of unbridled optimism could stand to serve an F1 team well, only Stefan GP isn't an F1 team. Yet. But they hope to be, and they're not taking no for an answer.
Late last year after Toyota departed from the series, the Serbian racing team headed by Zoran Stefanovic (pictured above at Toyota's headquarters in Cologne, Germany) brokered a deal with the Japanese automaker to pick up Toyota's aborted 2010 program and run with it as an independent. Stefan applied for a slot on the grid, but their bid was rejected. Now they're banking on one of the teams that was accepted - Campos, USF1 or (less likely) Virgin or Lotus - failing to make it to the opening round in Bahrain next month.
Sounds ambitious? Definitely, but not without merit. Bernie Ecclestone is backing Stefan GP's effort, and they're slated to unveil their own car, powered by their own engine (both rebranded from Toyota's program), and send it to the test session in Portugal later this month. Toyota is providing support, and Stefan has recruited a team of engineers - including several former McLaren operatives implicated in the Spygate and Liegate scandals - and former Midland/Spyker/Force India director Colin Kolles.
Word has it the team has also already lined up two experienced drivers backed by Toyota: Kazuki Nakajima and - get this - Ralf Schumacher. The younger Schumi expressed interest in returning to F1 alongside his more successful brother, and may just get his chance if another team misses theirs.
[Source: Stefan GP via ESPN]Opportunity Knocks: Stefan GP and Toyota prepare for another team's failure originally appeared on Autoblog on Mon, 08 Feb 2010 07:59:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsVideo: Toyota recall apology blitz includes new mea-culpa TV spotFiled under: Marketing/Advertising, Recalls, Safety, Videos, Toyota
Recalls have left Toyota battered and bruised with a very damaged image that now needs rebuilding. Consumer trust is not easily earned. Toyota knows it, too. The automaker worked for decades to build an image that equated quality and reliability with the company name itself. Now under heavy fire over its handling of the problems that led to the floor mat and gas pedal recalls involving its most popular and important models, Toyota has embarked upon a PR blitz intended to convince frustrated customers and a skeptical media that everything's going to be all right.
Whether that's indeed the case will become evident over time. Sales numbers speak for themselves, and if the public isn't buying Toyota's explanation, they won't be buying its vehicles, either. In any case, it'll probably be years before the recall story's epilogue can honestly be written.
For now, Toyota's primary focus is on re-establishing itself as a business that's deserving of consumers' trust. That starts with saying "I'm sorry" as frequently and in as many different venues as possible. The latest part of Toyota's apology blitz comes in the form of a new TV spot called "Commitment." It's embedded after the jump for you to watch. The message is simple and delivered well: Toyota messed up big time, it knows it, and it's fully aware that the onus is on itself to win back customers' confidence.
If Toyota's smart, it'll air during the Super Bowl later this evening. But seeing it also leaves us wondering if Toyota had spent a fraction of its PR resources on getting out in front of these recall problems months ago instead of the damage control its writing checks for now, would it even be in this position today? Unfortunately for Toyota, we'll never know.
[Source: Toyota via Gaywheels]
Tired of Toyota recall news? Try out the recall-free version of Autoblog.Continue reading Video: Toyota recall apology blitz includes new mea-culpa TV spot Video: Toyota recall apology blitz includes new mea-culpa TV spot originally appeared on Autoblog on Sun, 07 Feb 2010 16:29:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsSocial Experiment? Digg community to interview Toyota President on MondayFiled under: Etc., Recalls, Safety, Toyota, Event Alert  Digg, the "what's popular" website that allows users to share and rate links to stories they've discovered online, also offers a feature known as "Digg Dialogg," wherein it hosts a streaming exchange between prominent public figures and the masses (those that frequent Digg, at least).
Monday's Digg Dialogg will be with Toyota's U.S. President & COO, Jim Lentz, who will presumably answer questions about that hot new 2011 Sienna. He might field a few queries on the recall woes afflicting the company right now as well. We're just guessing.
The description of the event gives us some indication of what will be covered and why Toyota is reaching out in this unique manner:
"Toyota is one of the most admired and recognizable brands in the world. With this recall, Toyota is facing intense scrutiny around how they will manage and get past the crisis. With social media channels such as Digg emerging as primary sources for news and engagement, Toyota is taking the unprecedented step of putting its senior executive in a direct dialogue with consumers, using social media to address Toyota's response to this extraordinary challenge."
The interview starts at 2 p.m. PST Monday, February 8 and will be broadcast live on Digg's Dialogg page. They've already started accepting questions, which you can post up until 8 a.m. PST Monday. As of this writing, there were exactly 900 comments already in the queue. As you can probably imagine, most of the questions have an irate tone, but some people are asking the mundane, the humorous and the absurd as well. What did you expect from those sociial mediates?
[Sources: Toyota, Digg]
Tired of Toyota recall news? Try out the recall-free version of Autoblog.
Social Experiment? Digg community to interview Toyota President on Monday originally appeared on Autoblog on Sun, 07 Feb 2010 13:34:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsVideo: Jim Lentz makes his own recalled pedal fix filmFiled under: Recalls, Safety, Videos, Toyota 
Toyota's Jim Lentz explains the sticky pedal situation - Click above to watch the video after the break
Toyota President and COO Jim Lentz decided to go ahead and visit one of the automaker's own dealerships to see one of its recalled gas pedals go through the shim-fix for himself, and he helpfully brought a video crew along for the ride. After giving a brief rundown of what's happened thus far - a much more thorough version of which can be found here - Lentz turns the duties over to one of the dealership's service technicians, who runs through the actual process of fixing a defective pedal.
Now, for a few observations: First, we wouldn't want to take his place behind the camera, but all Lentz needs is a basketball for that left hand of his and he'd be a veritable Harlem Globetrotter. Second, the fix doesn't look all that difficult, and it takes the technician just a few minutes to add the shim after the affected pedal has been removed from the vehicle. Lastly, for another take on the pedal-shim operation, see our previous video on the subject here.
Check out Lentz's video after the break, and check out our high-res image gallery of the process below.
[Source: Toyota via YouTube]
Tired of Toyota recall news? Try out the recall-free version of Autoblog.
Continue reading Video: Jim Lentz makes his own recalled pedal fix film Video: Jim Lentz makes his own recalled pedal fix film originally appeared on Autoblog on Fri, 05 Feb 2010 19:27:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsHas Toyota's brand perception eroded below that of Hummer? At least one survey thinks soFiled under: Hummer, Toyota 
Those of you who are still following our ongoing coverage of the Toyota recall saga already know that the Japanese automaker has taken a direct blow to the chin when it comes to consumer perception. But just how low has Toyota sunk? Naturally, that depends on who you ask and on how much weight that person choose to put behind these massive recalls, but at least some of you seem to think the automaker has descended all the way to rock bottom.
According to YouGov BrandIndex - which we were admittedly not familiar with until running across this interesting little nugget - Toyota's -17.1 rating on February 3rd put the automaker below more traditional bottom-feeders like Hummer, which scored a -10.7 on the very same day. Just two weeks ago, the very same poll had Toyota up near the top with a positive perception rating of 28. It may not be the most meaningful statistic you'll run across today, but it's an interesting sidebar nonetheless.
Tired of Toyota recall news? Try out the recall-free version of Autoblog.
[Source: PRWeek US]Has Toyota's brand perception eroded below that of Hummer? At least one survey thinks so originally appeared on Autoblog on Fri, 05 Feb 2010 16:00:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | CommentsReport: After NHTSA investigator hired by Toyota, serious unintended acceleration cases ignoredFiled under: Government/Legal, Safety, Toyota  The more we learn about Toyota's rumored relationship with the National Highway Traffic Safety Administration, the less we like it. Remember the claim that the government agency may have known about unintended acceleration issues as early as 2004? ABC News does, and the news network has been doing its best Sherlock Holmes work in an effort to learn more about the potentially damaging claims.
The ABC News investigation revealed that NHTSA wrote a memorandum limiting unintended acceleration claims to episodes lasting two seconds or less when the brake was never applied. The report states that the memorandum came down after agency representative Scott Yon met with two former colleagues (including Chris Santucci) who left the government to work for Toyota. Santucci testified back in December that the limited scope of investigations "worked out well for both the agency and Toyota."
Also in question is whether federal safety investigators are included in a federal law that states that "an employee in the executive branch is barred for two years after leaving government service from representing any matter under the employee's previous official responsibility." Santucci left his job at NHTSA six months before he reportedly negotiated the terms of the investigation with his ex-colleagues.
According to ABC News, the limited scope of the investigations ruled out 26 of the original 37 claims of unintended acceleration. A reported 25 of those 26 incidents led to an accident or crash, and since those incidents were outside of the scope of the investigations, NHTSA never looked into the incidents. Sean Kane of Safety Research & Strategies told ABC News that the narrow scope of the investigation meant "NHTSA almost ensured they wouldn't have enough complaint data to take action."
The extremely limited and nonsensical scope of the investigations between 2004 and 2007 continually failed to show any failures, and Toyota routinely pointed that out when the subject was brought up even in the weeks that led to the original recall of 3.8 million floor mats in the fall of 2009. In fact, ABC News claims that a document provided by Toyota to NHTSA stated that the Japanese automaker would not even submit a report to the government "in which the customer alleged that they could not control a vehicle by applying the brake."
Tired of Toyota recall news? Try out the recall-free version of Autoblog.
[Source: ABC News]Report: After NHTSA investigator hired by Toyota, serious unintended acceleration cases ignored originally appeared on Autoblog on Fri, 05 Feb 2010 11:28:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsToyota President apologizes... again, calls situation a "crisis" *UPDATEFiled under: Japan, Recalls, Toyota 
Fifteen days after Toyota announced a recall of 2.3 million vehicles in the U.S. for sticking accelerator pedals, the company's president and grandson of its founder made a formal apology at an evening news conference in Japan on Friday night (early morning EST). Akio Toyoda has been largely silent during the last two weeks as his company struggles to contain the fallout from recalls affecting over nine million vehicles on multiple continents. The only other time he's spoken on record was during an interview at the World Economic Forum in Davos, Switzerland last Friday when he told a Japanese interviewer, "I am deeply sorry." What's the reason for today's remarks? Toyoda told the audience of press, ""I came out here today because I would not want our customers to spend the weekend wondering whether their cars are safe."
The company president also announced that a committee would be created to look at Toyota's quality issues and address them going forward, something his predecessor, Katsuake Watanabe, also did back in 2006. Finally, in regards to braking issues with the 2010 Prius revealed yesterday, Toyoda said the company would soon announce how it plans to address them. Despite reports coming out of Japan to the contrary, there has been no official confirmation from Toyota that the new Prius will be recalled. Both the Japanese and U.S. governments have also opened investigations on the Prius and Toyota has pledged its cooperation.
We also learned yesterday of brake issues in the Ford Fusion Hybrid and Mercury Milan Hybrid after Consumer Reports experienced a sudden loss of braking power in a Fusion Hybrid and contacted the automaker. The issue sounds similar to what some owners are experiencing in the 2010 Prius, though we've only heard of this one instance and Ford has already responded with a TSB to repair the issue with a software upgrade.
UPDATE: Statement by Toyota President Akio Toyoda added after the jump.
[Source: The New York Times | Image: Yoshikazu Tsuno/AFP/Getty]Continue reading Toyota President apologizes... again, calls situation a "crisis" *UPDATE Toyota President apologizes... again, calls situation a "crisis" *UPDATE originally appeared on Autoblog on Fri, 05 Feb 2010 08:58:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsFixing Toyota's Recalled Pedals: The Video starring Doug the Master TechnicianFiled under: Recalls, Videos, Toyota
LaFontaine Toyota's Master Technician Doug fixes a recalled pedal - Click above to watch video
Earlier today we showed you exactly how a Toyota dealer will fix each of the 2.3 million potentially defective accelerator pedals involved in Toyota's latest recall. Thanks to our friends at AOL Autos who joined us on this field trip to LaFontaine Toyota, we now present video of Doug the Master Technician doing what thousands of Toyota service people will soon be doing to millions of Toyota vehicles in the coming months. Follow the jump to start the show, click here to follow along step-by-step and don't forget to check out Autoblog's Ultimate Toyota Recall Guide for the big picture.
Continue reading Fixing Toyota's Recalled Pedals: The Video starring Doug the Master Technician Fixing Toyota's Recalled Pedals: The Video starring Doug the Master Technician originally appeared on Autoblog on Thu, 04 Feb 2010 19:58:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsNissan Frontier tops latest round of IIHS crash tests, Chevrolet Colorado hits bottomFiled under: Truck, Safety, Chevrolet, Chrysler, Dodge, Ford, GM, Nissan, Toyota 
IIHS compact pickup crash tests - Click above for high-res image gallery
The Insurance Institute for Highway Safety has tested five compact pickup trucks for both rollover and side impact crashes, and overall, it would seem that the trucks' performances were pretty dismal. Only the Nissan Frontier was given a 'Good' rating from the IIHS for rollover protection, with the Ford Ranger falling to second place with an 'Acceptable' rating and the Chevrolet Colorado, Dodge Dakota and Toyota Tacoma earning lowly 'Marginal' scores.
Side impact scores also failed to live up to expectations for some trucks, with the Frontier, Ranger and Tacoma getting 'Good' ratings and the Colorado getting the lowest 'Poor' rating. Equally as disturbing, though, was the performance of the Dakota, which was tested with optional side air bags (all the other trucks come standard with the bags) that failed to deploy in IIHS testing. Chrysler has reportedly identified the software glitch that caused the air bags not to deploy and is working on a fix. The Dakota will be retested with properly functional air bags at a later date.
See the results of the testing in our image gallery below and click past the break for the official press release from the IIHS.
[Source: The Insurance Institute for Highway Safety]Continue reading Nissan Frontier tops latest round of IIHS crash tests, Chevrolet Colorado hits bottom Nissan Frontier tops latest round of IIHS crash tests, Chevrolet Colorado hits bottom originally appeared on Autoblog on Thu, 04 Feb 2010 15:29:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsTheDetroitBureau on Autoblog with Paul EisensteinFiled under: Recalls, Toyota We're very pleased to announce that veteran automotive journalist and Publisher of TheDetroitBureau.com, Paul Eisenstein, has joined the Autoblog team as a Contributing Editor. His editorials will appear regularly on Autoblog, beginning with this one:
Toyota: From "Benchmark" to "Troubled," the Decline of an Icon
 It's been said that when the gods want to punish a company, they first give it 40 years of success. Okay, we might quibble with the precise number, but that certainly seems to fit Toyota. Even with last year's bankruptcy at General Motors providing perspective, it's hard to find any more rapid fall from grace.
It was just a year ago that the giant maker seemed to have everything going for it. It had toppled GM, the long-time automotive king-of-the-hill, to become the world's biggest carmaker. It was routinely touted as the benchmark for what industry types like to call QRD, or quality, reliability and dependability to everyone else. Its Toyota Manufacturing System was the benchmark that everyone else set out to emulate. And as former Ford Vice Chairman Allan Gilmore was fond of repeating, the Japanese maker had "more money than God."
Yet, it didn't take long for things to turn upside-down following the release of the global 2008 sales numbers. Even as Toyota was savoring victory in its battle with GM, which was quickly plunging towards Chapter 11, Toyota's financial house turned out to be in alarming disorder, the maker reporting its worst - indeed its first - loss since the guns fell silent at the end of World War II.
Paul A. Eisenstein is Publisher of TheDetroitBureau.com, and a 30-year veteran of the automotive beat. His editorials will bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.
Continue reading TheDetroitBureau on Autoblog with Paul Eisenstein TheDetroitBureau on Autoblog with Paul Eisenstein originally appeared on Autoblog on Thu, 04 Feb 2010 14:59:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsGM teaming up with NASA to build robots. Suck it, Asimo [w/video]Filed under: Etc., Technology, GM, Honda, Toyota 
Robonaut 2 by GM and NASA - Click above for high-res image gallery
Phase three of the robot invasion has begun. Not content to let Honda and Toyota have all the fun, General Motors has gotten into the robot game as well. Working with NASA - all of these planetary takeovers involve space invaders after all - The General has developed "the next generation of robots and related technologies for use in the automotive and aerospace industries." Dubbed Robonaut 2, or R2 (-D2?), this second-generation automaton is a "faster, more dexterous and more technologically advanced robot. This new generation robot can use its hands to do work beyond the scope of prior humanoid machines." Throttling humanoids eerily fits into that description.
GM's interest in the R2 unit is safer plants. "The partnership's vision is to explore advanced robots working together in harmony with people, building better, higher quality vehicles in a safer, more competitive manufacturing environment," according to Alan Taub, GM's vice president for global research and development. They've obviously gotten to him already. All hope is lost. Resistance is futile. Assimilate.
Seriously though, GM's Robonaut 2 differs slightly from Honda's Asimo and the Toyota elderly-helping robot in that it seems to be intended for private use rather than retail sales. We're not sure if it can play a trumpet or not, but follow the jump for a video of your how your new master works.
[Source: General Motors]Continue reading GM teaming up with NASA to build robots. Suck it, Asimo [w/video] GM teaming up with NASA to build robots. Suck it, Asimo [w/video] originally appeared on Autoblog on Thu, 04 Feb 2010 14:28:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsReport: Toyota dealers to receive up to $75,000 for extra hours due to recallFiled under: Recalls, Safety, Toyota, Earnings/Financials
Toyota may be experiencing some major recall pain right now, but that isn't stopping the Japanese automaker from taking care of its dealers at a time when the company needs them more than ever. USA Today reports that Toyota will give dealers $7,500 to $75,000 for staying open extended hours in an effort to repair as many vehicles as fast as possible. Dealers who sold fewer than 500 cars will get $7,500, while dealers who sold more than 4,000 will get $75,000.The extra money comes in addition to the costs associated with each repair.
While Toyota may be getting hit hard with a series of costly recalls that could cost as much as $2 billion this quarter alone, dealers and dealership employees figure to experience a short-term boon. The extra money coming from the service area will be needed, too, as new vehicle sales at dealerships are undoubtedly low given the fact that dealers cannot sell eight of the automaker's most popular vehicles, including the Toyota Camry and Corolla.
[Source: USA Today]
Report: Toyota dealers to receive up to $75,000 for extra hours due to recall originally appeared on Autoblog on Thu, 04 Feb 2010 13:57:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | CommentsToyota dealer shows us fix for sticking accelerator pedalsFiled under: Recalls, Toyota 
Autobog visits LaFontaine Toyota to find out how a recalled pedal is fixed - Click above to see the process step-by-step
Toyota has built up the most enviable reputation for quality and durability in the auto industry, but the once unassailable industry giant is now embroiled in two simultaneous recalls related to faulty accelerator pedals. The floormat pedal entrapment recall announced late last year is the company's largest ever involving over four million vehicles, but the sticking accelerator pedal recall announced on January 21st has hurt its reputation the most. The Japanese automaker announced earlier this week that it would address the more recent of the two recalls by installing a metal shim into the pedal assembly of each affected vehicle. Toyota claims this fix will reduce the amount of friction that could cause the pedal to stick in certain situations.
We wanted to know exactly how the recall fix would be performed on the 2.3 million vehicles affected, so as soon as the shims began arriving at Detroit-area Toyota dealers on Wednesday, we and our PICs (that's Partners In Crime) from AOL Autos made arrangements to visit LaFontaine Toyota in Dearborn. Owner Mike LaFontaine Jr. and fixed operations director Todd McCallum agreed to let us check out the repair process and answer our questions. Read on after the jump to learn all about it or see the process step-by-step in our gallery.
Photos by Sam Abuelsamid / Copyright (C)2010 Weblogs, Inc.
Continue reading Toyota dealer shows us fix for sticking accelerator pedals Toyota dealer shows us fix for sticking accelerator pedals originally appeared on Autoblog on Thu, 04 Feb 2010 11:59:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsReport: In spite of recalls, Toyota raising annual forecastFiled under: Recalls, Safety, Toyota, Earnings/Financials  Despite internal predictions that its current throttle-related recall costs may dent company coffers by up to $2 billion this quarter, Toyota has raised its projections for the fiscal year ending in March. That's according to Reuters, who note that the increase comes after the automaker beat its third quarter estimates.
Toyota had previously stated that it expected to incur a 350 billion yen loss (around $3.86 billion USD), and now it says it only expects to lose 20 billion yen ($220 million). Toyota's previous forecast was considered "excessive conservative," with outside brokerage houses predicting a loss of around 38 billion yen.
According to the news agency, Toyota says the updated forecast includes around 100 billion yen for recall costs (about $1.1 billion), and another 70-80 billion yen for lost sales (around $830 million), yet at the same time, Toyota says it expects to save some 1.59 trillion yen ($17.5 billion) via "emergency profit measures, an increase over earlier estimates.
Toyota stock has taken a drubbing over the two weeks since this wave of recalls began, with shares having been down as much as 23 percent - some $30 billion.
[Source: Reuters via Automotive News - subs. req.]
Report: In spite of recalls, Toyota raising annual forecast originally appeared on Autoblog on Thu, 04 Feb 2010 10:28:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsToyota admits Prius had a braking problem *UPDATEDFiled under: Hybrid, Government/Legal, Recalls, Safety, Toyota
2010 Toyota Prius - Click above for high-res image gallery
Toyota has received a lot of negative publicity for its sticking accelerator pedal and floormat recalls, and now brake problems with the Prius can be officially added to the list. While there were reports of some serious concern about the brakes in the best-selling hybrid, Toyota has now admitted that there are indeed known problems with the car's anti-lock braking system.
A Toyota spokesperson said on Thursday that Prius models sold before the end of January have this brake system design problem, but that the problem has been corrected on models sold since then, according to the Associated Press. The announcement follows Japanese and U.S. officials ordering the company yesterday to investigate around 180 claims of braking problems in the 2010 Prius.
The Japanese automaker's explanation for what causes the braking issue seems right in line with the possible explanation we posited yesterday. Long story short, the Prius has both a regenerative and friction braking system, and can apparently experience a short, temporary loss of braking during the transition between the two on slick or bumpy surfaces. Toyota calls it a "slight unresponsiveness" and it usually lasts under a second.
While 2004-2009 Prius models are included in Toyota's floormat recall and none are affected by the sticking accelerator pedal recall, the new third-generation model had remained above the fray completely until yesterday. And while a recall to fix the brake issue on these models has not been announced yet, it is being considered.
UPDATE: The U.S. Transportation Department has opened an investigation into brake problems with the 2010 Toyota Prius after the company admitted it knew of the problem earlier this morning.
[Source: The New York Times]
Toyota admits Prius had a braking problem *UPDATED originally appeared on Autoblog on Thu, 04 Feb 2010 08:21:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsNHTSA mulling Toyota fines for delayed recall?Filed under: Recalls, Safety, Toyota 
$16.4 million. That's the maximum amount the Department of Transportation (DOT) can fine an automaker for failing to recall a defective vehicle in a timely manner. And according to a recent report, the Feds could be pursuing a multimillion-dollar fine - the sum, yet to be disclosed - due to the Toyota recall.
The largest civil penalty ever imposed was handed down to General Motors when a windshield wiper on 581,344 SUVs wasn't dealt with in accordance to the DOT's regulations. Although no automaker has ever incurred the maximum penalty, judging by Secretary Ray LaHood's recent comments about Toyota's handling of the matter ("While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point."), it's not so much a matter of when as it is how much.
[Source: Automotive News - Sub. Req. | Image Source: Alex Wong/Getty]NHTSA mulling Toyota fines for delayed recall? originally appeared on Autoblog on Wed, 03 Feb 2010 16:27:00 EST. Please see our terms for use of feeds. Permalink | Email this | CommentsToyota asked to make car payments for customers in new class action lawsuitFiled under: Government/Legal, Recalls, Toyota 
And the Toyota beat rolls on. Or should we say the Toyota beat down rolls on. Check this out: a group of Toyota owners (and leasers) have asked a judge to file a class action suit demanding that until their accelerator pedals are fixed, Toyota should pick up the tab for the recalled cars. That's right, some folks in Cincinnati feel they shouldn't have to make any payments to Toyota until their cars are fixed. Here's what the lawyer filing the suit has to say:
"Until they make it safe, people shouldn't have to pay their lease payments and shouldn't have to make their bank payments. Let Toyota pick that up."
Not being of the legal persuasion, we have no idea if the judge will allow this, as it would set a fairly dangerous precedent for all auto makers. Imagine if every time a car got recalled for a faulty cup holder (or whatever) the owners didn't have to pay for it. While it might sound like music to a recalled person's ears, corporations have a nasty habit of massing them sorts of costs back onto the consumers en masse, meaning we all could suffer.
Though perhaps this proposed class action suit (the second one concerning ToMoCo we're aware of) will be contained just to Toyota. Here's a bit more of what the suit alleges, "[I]t was more important to Toyota to increase sales and become the largest manufacturer in the world. Toyota sacrificed innocent, trusting lives for profit and hubris." Your Volvo's stall-prone software is hardly in the same league.
The suit doesn't stop there. Another cited reason for Toyota to pick up the monthly payment tab is because all this recall hysteria has hurt the value of the cars in question. Frankly, and long term, that might be the most interesting point of all. The suit also claims that Toyota has previously "destroyed potentially incriminating documents" and wants the court put a stop to the alleged practice.
[Source: Cincinnati.com]Toyota asked to make car payments for customers in new class action lawsuit originally appeared on Autoblog on Wed, 03 Feb 2010 15:31:00 EST. Please see our terms for use of feeds. Permalink | Email this | Comments
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