Toyota

[doug]

Toyota Corolla History
The rear wheel drive Toyota Corolla was first introduced in Japan in model year 1966. Two years later, it was brought to the United States, replacing the unpopular and barely-noticed Crown. It lasted only two years with its original 60 horsepower (@6,000 rpm, gross) 1.1 liter engine. The Corolla was definitely small by American standards, with a 90 inch wheelbase; its 66 cubic inch engine (at that time, the smallest Plymouth had a 170 cubic inch powerplant!), however, moved the Corolla to an 87 mph maximum speed without the slow times one would expect, because the entire vehicle weighed 1,637 pounds - the wagon a bit heavier at 1,731 pounds - far less than the smallest Plymouth, which weighed nearly 3,000 pounds. Torque was balanced with horsepower at 61.5 lb-ft at 3,800 rpm. A two-barrel carburetor got the most out of the engine - in those years you simply could not get a two-barrel Valiant, and most other entry-level cars used a cheap but power-robbing single-barrel. The Corolla used modern unit-body construction, and the engine was hooked up to a four-speed synchronized manual transmission, again, at a time when most cars had a three-speed as their base manual and a four-speed as a sporty option. The small engine was sturdy, with five main bearings.


The 1970 model was bigger, powered by a "much larger" 1.2 liter engine (73 net horsepower), now with an optional automatic transmission to suit American tastes. This new model actually became the second best selling import car in 1970, though at that time, the vast majority of cars were from GM, Ford, and Chrysler, with even AMC selling more vehicles than the imports.

The next year, 1971, brought a 1.6 liter engine, more in tune with American tastes; it produced 102 horsepower, gross, and its SR5 option brought a five-speed manual transmission (advanced for its time). The American Corolla weighed a mere 1,566 pounds, allowing its relatively small engine to move rather quickly; the standard four-speed manual transmission had one more gear than most American sticks, and was syncrhonized as well for easy driving. A fastback coupe and two door sedan made up the line, and with an $1,830 starting price, the Corolla promised more value than just about any other car on the road.

Like most cars of the time, these Corollas had rear wheel drive, unit-body construction, and a solid rear axle with leaf springs. They did have springs and struts in front, which was not unusual for small cars but was not yet popular among American automakers. Both front and rear brakes were drums, and wheels were 6 inches wide by 12 inches tall; the 90 inch wheelbase was shared with the Land Cruiser, while the 153 inch length and 59 inch width let it fit in practically any garage.

Though sales were small, there were three models: coupe, two-door wagon, and sedan, starting at less than $1,700 - a bit cheaper than the popular Novas and Valiants (whose base engines were roughly 150 horsepower gross, 100 net). Some magazines talked happily about their economy, though quality was still a question, and rust was a severe problem. Corollas in coastal states were likely to rust apart before their engines had a chance to wear out.

1974 saw the third generation, and the Corolla's strongest popularity - including the inexpensive Corolla Tercel model [which isn't really fair since the Tercel was a completely different vehicle], it was the best-selling vehicle in the world from 1974 to 1977. Five years later, in 1979, a fourth generation appeared, still with rear wheel drive. This was to last until 1984, when the fifth generation Corolla came with front wheel drive and a coupe version, the GT-S,with a 16 valve engine (the GT-S remained in production through 1991.)

The so-called Corolla Tercel was first introduced to the United States in 1980.

The third generation had five models - sedans with two and four doors, a four door wagon, a two-door standard hardtop, and a two-door SR5 hardtop - but it had the same basic drivetrain, albeit with a catalytic converter. A two-door hatchback with a split folding rear seat and a "sport coupe" were added in 1976, when Toyota bragged:

Corolla offers you the lowest price and highest mileage we have to offer. Better gas mileage in 1976 than in 1975... we check every Corolla engine with ten electrical and mechanical tests before we put it into a Corolla. Then we check every car...from the power front disc brakes to the cigarette lighter...the alignment of the hood to the interior trim. ... Most Corollas come standard with features like fully reclining front bucket seats, wall-to-wall carpeting, steel-belted radials, tinted glass, even an electric window defogger.



An updated grille appeared in 1977.

The most dramatic change to date came in 1979, as all models except the wagon gained coil springs in the rear suspension, the wheelbase was lengthened to 94.5 inches, and a brand new engine was added - producing 75 net horsepower, which is more than the prior 102 gross horsepower. The transmissions carried over, but in 1982 a four-speed automatic was brought out - one of the first available in a mass production car - and the engine was down-rated to 70 horsepower.

In 1983, the 1.8 liter four-cylinder was replaced by a 1.6 liter single-overhead-cam powerplant that continued to feature 70 net horsepower, but boosted gas mileage by 12% to an amazing 36 mpg city, 47 highway with the automatic. The four speed manual, five speed manual, and three speed automatic were still available. The Corolla Hardtop came only with the four-speed automatic. (There were eight models in 1983, the Hardtop, Sport Coupe, Liftback, Sedan, and Wagon with varying numbers of door).

Handling was improved through a new rack and pinion steering system, with power assist on most models; the SR5 Sport Coupe and SR5 Hardtop could be purchased with a sports handling option, featuring stiffer springs and shock absorbers, a larger rear sway bar, a revised differential gear ratio for better torque at low and medium speeds, special seats with a unique fabric trim, raised white-letter steel-belted radials, aluminum wheels, and a wrapped, wider steering wheel. Only the SR5 Hardtop and Sport Coupe got a rear stabilizer bar; all models got a front stabilizer bar. The gas tank held 13.2 gallons for a remarkable distance between fill-ups. Rear brakes were drum, front were discs; all models had power brakes.

The SR5 models also had two-tone paint schemes as options, while a sun-moon roof was available on all Sport Coupe and Liftback models. The lineup was two-door sedan and Deluxe sedan; four-door Deluxe sedan and Deluxe wagon; Deluxe liftback; SR5 Liftback, Sport Coupe, and Hardtop.

In 1984, the Corolla moved to the format pioneered by the Hillman Avenger and copied so well by the Volkswagen Rabbit - front wheel drive with a transversely mounted four-cylinder engine, and MacPherson struts up front and coil springs in back (the SR5 Coupe and hatchback and the station wagon would be converted later). A small number of diesels were sold in the US, but these were quickly cancelled. Instead, a new version of the 1.6 liter engine, boasting dual overhead cams and four valves per cylinder, was added in mid-1984 to the rear wheel drive coupe and liftback, which, when so equipped, were called the Corolla GT-S. This vehicle attracted a following as it was rather fun to drive, and the engine was used in the original MR2, introduced in 1985. Meanwhile, the standard Corolla was rated as one of the ten most trouble-free cars in America by J.D. Power.

Faced with increasing sales, Toyota entered a joint venture with General Motors to create NUMMI, taking over a poorly performing General Motors plant in California and turned it into one of the highest quality plants in North America, at least partly due to an innovative system of implementing employee suggestions. The NUMMI plant built both the Corolla and the General Motors version, the Nova (later to be renamed Prizm), and remained active through to the present day.





In 1987, the last year of the fifth generation, the two Corolla choices (four door sedan or four-door hatchback) were supplemented by the new sporty Corolla FX Coupe; standard Corollas now came with the 1.6 liter engine, with a generous two-barrel carburetor, standard, as the only engine choice. Corolla trim lines (except FX) for this year were Deluxe (with reclining bucket seats, thick pile carpeting, tinted windows, map pockets, and rear window defogger) and the lower LE (with cloth trim, center console, four-speaker FM stereo, and intermittent wipers). Toyota could boast of some of the lowest maintenance requirements in the industry, with oil and filter changes at 10,000 miles and spark plugs lasting 30,000 miles, with coolant renewal at 60,000 miles, due to intelligent, efficient design, electronic-feedback carburetion, fuel preheating, and other features. The engine V-belts, according to Toyota, required no service under normal conditions.


The Corolla Sport was considered a seperate model, with two versions: SR5 and GT-S. They provided buyers with a sporty appearance and multi-valve engines; the main buyers were female college graduates in their late twenties (except GT-S hatchback, which was single college-educated men, median age 28). SR5 and GT-S both came as coupes, and GT-S was also available as a hatchback; the SR-5 used the standard Corolla engine, while the GT-S used a higher-compression (9.4:1 rather than 9.0:1), electronically fuel injected, 16-valve powerplant with 112 horsepower and 97 lb-feet of torque. This latter engine used dual cams, a central spark plug (“semi-hemi”), and variable induction - a series of valves in the induction ports to improve intake velocity at low engine speed, andincrease airflow at higher speeds. An oil cooler was standard. Transmissions were the close-ratio five-speed stick and the four-speed automatic.



Both had front seats with adjustable headrest angle, fore-and-aft travel, seat cushion height, and lumbar support; analog speedometer and tachometer readouts; optional dual-stage air conditioning (with an economy setting); and standard power steering. The GT-S had an 8,000 rpm speedometer and a 150 mph speedometer; both had flip-up halogen headlights. Front and rear antisway bars were standard, with an optional antislip differential; GT-S got four-wheel disc brakes, stiffer springs, firmer dampening, low-pressure shocks, and larger diameter antisway bars, as well as 195/60SR13 radials (the SR5 got 185/70SR13 radials).



Finally, the FX-16 was started as its own model, complete with the 16-valve 4A-GE engine. There were just two models, both two-door hatchbacks, called FX16 and FX16 GT-S; the base included reclining bucket seats, cloth interior, carpet, folding split rear seat backs, console, full instrumentation, and rear deck cover, while the GT-S added a more aggressive suspension, larger tires and rear sway bar, power remote outside mirrors, leather-wrapped wheel and shifter, tilt wheel, intermittent wipers, and rear window wiper-washer, along with a rear roof spoiler and other cosmetic touches. Both came with Eagle GT tires, either a five-speed stick or four-speed manual, four-wheel disc brakes, and the 16 valve engine, but tuned to 108 hp and 96 lb-ft rather than 112 and 97. That was a good-sized engine for a car that weighed in at just 2,350 pounds (five-speed FX16) or, at most, 2,436 pounds (automatic GT-S).





Sixth generation Toyota Corolla, 1988-1992
The sixth generation started in 1988. With sales still rising, Toyota opened a new facility in Canada which also produced Corollas. The quality of Toyota's new plants in North America was high enough to garner top (for its class) J.D. Power ratings in 1988, 1990, and 1992, and top ten ratings through 1994. The FX was available with either a single or dual cam engine (with the latter, it was called the FX16).



In 1993, the Corolla moved to its current compact size, garnering many awards. The Tercel was split off as a separate subcompact model to attract those who could no longer afford the increasingly upscale Corolla. The 1.6 liter 4A-F engine continued as standard equipment, with an optional stroked 1.8 liter version, the 7A-FE. A driver's side airbag was standard, and a passenger airbag was added in 1994. We expect to host a separate page on this landmark model soon. Also see technical details and drawings of the 1993-1997 models!

By 1997, all Corollas sold in the United States were built in North America — at NUMMI and in Canada. The wagon was discontinued, but side-impact protection was increased.

In 1998, a new generation was launched, which would last nearly ten years (it is scheduled for replacement in 2008). Its distinguishing feature was a new ZZ-series 1.8 liter engine which produced about 120 hp, with (unlike Civic engines) torque to match. Yet, it achieved very good gas mileage and was quite quiet.

In 2000, the engine was given variable valve timing for better gas mileage and more power. It also reduced emissions, so that the Corolla could be certified by the EPA as a low emission vehicle.

2001 saw a minor facelift of the sheet metal, making the Corolla look even more like a Camry. In 2003, the Corolla was expanded and cosmetically modified in a periodic redesign, while in 2004, a new generation was introduced that was larger inside - nearly matching the prior-generation Camry. In 2005, the Celica's engine was retuned for better mid-range torque (and lower horsepower) and put into a modified Corolla to produce the Corolla XRS.

In the thirty years since its introduction, Corolla has sold more cars worldwide than any other nameplate! (that was written in 1999 but is still true today.)

For a preview of the 2008 Corolla, click here.

Toyota Corolla specifications over the years
2003-2007 1998-2002 1993-
1997 1990-92 1987*** 1983 Sedan/Wagon
& SR5/Liftback
1978
Liftback 1966-69
Headroom, front 39.1 39.3 38.3 37.8 & 36.7 36.7
Headroom, rear 37.1 36.9 36.9 36.9
Legroom, front 41.3 42.5 42.4 42.1 & 41.6 42.1
Legroom, rear 35.4 33.2 32.0 29.1
Hip room, front 51.9 50.5
Hip room, rear 46.2 51.2
Tread (max) 58.3 57.5 52.4 & 53.0
Trunk space 13.6 cubic feet 12.1 cubic feet 11 cubic feet 12.7 c.f.
EPA interior space 90.3 cubic feet 88 cubic feet 84 cubic feet
Wheelbase 102.4 97.0 95.7 95.7 94.5 (both) 93.3 90
Length 178.3 174.0 170-172 166.3 166-169 (both) 170
Height 57.5-57.7 54.5 49.5-54.5 50.8-53.0 (both) 63.6
Width 66.9 66.7 65.2 - 65.6 64.4 63.4-64.0 (both) 52
Weight (lb) ~ 2,600 2414-2453 lb 2,390 - 2,436 2134-2167 2,080-2,178 (both) 1,637**
Drag coefficient .296* 0.31
Ground clearance 5.7 4.7 5.3

* Reported as 0.30 starting in 2005 ** Except wagon, 1,731 *** Four door sedan

Engines (All figures for FWD) 2003-07 1998-2002 1993-1997 1990-92 1987 1985 1983 1982 1966-69
Base engine, horsepower 130@6,000* 120 @ 5,600 103-105 90-102** 72 @ 5,200 70 @ 4,800 70 @ 4,800 60 @ 6,000
Base engine, torque 125@4,200 122 @ 4,400 100-102 95-101** 86 @ 2,800 85 @ 2,800 n/a 61.5 @ 3,800
Base engine, manual trans 32/40 31/38 28/33 30/37 Not Avail
Base engine, four-speed automatic 29/38 28/36 25/33 28/34 36/47 None
Base engine, three-speed automatic n/a 28/33 26/29 28/32 None

* Starting in 2006, engines were rated to 126 hp / 122 lb-ft of torque at the same engine speeds. Starting in 2005, gas mileage rose to 32/41 (manual), 30/38 automatic, 26/34 XRS.

** 1990: GT-S coupe got 130 hp/105 lb-ft (1990-91 only). 90 hp, 95 lb-ft are 1992 figures for Corolla.


Toyota Corolla history

[doug]

The Toyota Way
From Wikipedia, the free encyclopedia

The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation that includes the Toyota Production System. The main ideas are to base management decisions on a "philosophical sense of purpose", to think long term, to have a process for solving problems, to add value to the organization by developing its people, and to recognize that continuously solving root problems drives organizational learning.[1]

Since the 1980s, Toyota and Lexus vehicles have been recognized for their quality and are consistently ranked higher than other car makers in owner satisfaction surveys, due in large part (according to Jeffrey Liker, a University of Michigan professor of industrial engineering) to the business philosophy that underlies its system of production.[2]

Contents
1 The 14 Principles
1.1 Section I — Long-Term Philosophy
1.1.1 Principle 1
1.2 Section II — The Right Process Will Produce the Right Results
1.2.1 Principle 2
1.2.2 Principle 3
1.2.3 Principle 4
1.2.4 Principle 5
1.2.5 Principle 6
1.2.6 Principle 7
1.2.7 Principle 8
1.3 Section III — Add Value to the Organization by Developing Your People
1.3.1 Principle 9
1.3.2 Principle 10
1.3.3 Principle 11
1.4 Section IV: Continuously Solving Root Problems Drives Organizational Learning
1.4.1 Principle 12
1.4.2 Principle 13
1.4.3 Principle 14
2 Translating the principles
3 Notes
4 References
5 External Resources


The 14 Principles
The Toyota Way has been called "a system designed to provide the tools for people to continually improve their work"[1] The 14 principles of The Toyota Way are organized in four sections: I) Long-Term Philosophy, II) The Right Process Will Produce the Right Results, III) Add Value to the Organization by Developing Your People, and IV) Continuously Solving Root Problems Drives Organizational Learning. The principles are set out and briefly described below:

Section I — Long-Term Philosophy

Principle 1
Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
People need purpose to find motivation and establish goals.

Section II — The Right Process Will Produce the Right Results

Principle 2
Create a continuous process flow to bring problems to the surface.
Work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizen. The eight types of muda are:

Overproduction
Waiting (time on hand)
Unnecessary transport or conveyance
Overprocessing or incorrect processing
Excess inventory
Motion
Defects
Unused employee creativity

Principle 3
Use "pull" systems to avoid overproduction.
A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction.

Principle 4
Level out the workload (heijunka). (Work like the tortoise, not the hare).
This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment (muri), and not creating uneven production levels (mura).

Principle 5
Build a culture of stopping to fix problems, to get quality right the first time.
Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.

Principle 6
Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company.

Principle 7
Use visual control so no problems are hidden.
Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment.

Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardize: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it
Safety

Principle 8
Use only reliable, thoroughly tested technology that serves your people and processes.
Technology is pulled by manufacturing, not pushed to manufacturing.

Section III — Add Value to the Organization by Developing Your People

Principle 9
Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization.

Principle 10
Develop exceptional people and teams who follow your company's philosophy.
Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual.

Principle 11
Respect your extended network of partners and suppliers by challenging them and helping them improve.
Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.

Section IV: Continuously Solving Root Problems Drives Organizational Learning

Principle 12
Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).
Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota Technical Center (TTC)) ten management principles as a guideline:

Always keep the final target in mind.
Clearly assign tasks to yourself and others.
Think and speak on verified, proven information and data.
Take full advantage of the wisdom and experiences of others to send, gather or discuss information.
Share information with others in a timely fashion.
Always report, inform and consult in a timely manner.
Analyze and understand shortcomings in your capabilities in a measurable way.
Relentlessly strive to conduct kaizen activities.
Think "outside the box," or beyond common sense and standard rules.
Always be mindful of protecting your safety and health.

Principle 13
Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).
The following are decision parameters:

Find what is really going on (go-and-see) to test
Determine the underlying cause
Consider a broad range of alternatives
Build consensus on the resolution
Use efficient communication tools

Principle 14
Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).
The process of becoming a learning organization involves criticizing every aspect of what one does. The general problem solving technique to determine the root cause of a problem includes:

Initial problem perception
Clarify the problem
Locate area/point of cause
Investigate root cause (5 whys)
Countermeasure
Evaluate
Standardize

Translating the principles
There is a question of uptake of the principles now that Toyota has production operations in many different countries around the world. As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different cultures must be taken into account. Concepts such as “mutual ownership of problems,” or “genchi genbutsu,” (solving problems at the source instead of behind desks), and the “kaizen mind,” (an unending sense of crisis behind the company’s constant drive to improve), may be unfamiliar to North Americans and people of other cultures. A recent increase in vehicle recalls may be due, in part, to "a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers." Toyota is attempting to address these needs by establishing training institutes in the United States and in Thailand.[3]

Notes
^ a b Liker, J. 2004. "The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS", p. 37. Ann Arbor, Michigan: University of Michigan. Retrieved: 2007-04-24
^ Liker, J. 2004. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.
^ Fackler, Martin. The ‘Toyota Way’ Is Translated for a New Generation of Foreign Managers. New York Times. February 15, 2007. Retrieved on: July 2, 2007.

References

Hino, Satoshi (2005). Inside the Mind of Toyota: Management Principles for Enduring Growth. University Park, IL: Productivity Press. ISBN 978-1-56327-300-1. http://www.productivitypress.com/productdetails.cfm?SKU=3004.
Liker, Jeffrey (2004). The 14 Principles Of The Toyota Way: An Executive Summary of the Culture Behind TPS. http://www.si.umich.edu/ICOS/Liker04.pdf.
Liker, J (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill. ISBN 0071392319. http://books.google.ca/books?id=9v_sxqERqvMC&dq=The+Toyota+Way&psp=1.
Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps. McGraw-Hill. ISBN 0071448934.

External Resources
The Toyota Way - Series of books written on the topic

Retrieved from "http://en.wikipedia.org/wiki/The_Toyota_Way"

Categories: Toyota | Quality

This page was last modified on 29 September 2009 at 14:30.

[doug]

Extra10/8/2009 12:01 AM ET
Has Toyota lost its way?
Since surpassing GM last year to become the world’s best-selling automaker, Toyota has been plagued by setbacks, including its first loss since 1938.
By The Big Money
In spring of 2008, with the distant rumbling of financial crisis still far off, Toyota Motor (TM, news, msgs) could be forgiven for complacency. It had just taken the title of world’s largest automaker from longtime rival General Motors (MTLQQ, news, msgs). To most observers, this was no surprise. It had been clear for a decade that Toyota wanted to be No. 1, and that it could beat GM in just about every market, except full-size pickup trucks in the United States.

Toyota is now reeling after historic financial losses, a change of leadership, several lawsuits and a string of recalls. These culminated last week in the humiliating announcement that the firm whose stated goal is perfection would need to service 3.8 million vehicles due to a poorly designed and potentially deadly flaw in a floor mat.

This is a company that operated according to the almost mythical Toyota Way, a set of management principles intended to inspire continual improvement. But the Toyota Way is at the root of Toyota’s current woes: Perfectionism is great when you’re on the way up and your main rival is extremely imperfect. But once you’re there, staying flawless can become an ordeal, as CEO Akio Toyoda as much as admitted last week.

Toyota became No. 1 because it made cars that didn’t have to be distinctive. Instead, they fulfilled customer needs better than the competition. This was the result of Toyota Way, along with the much-envied Toyota Production System. Toyota became a contender for the top spot in the early 2000s, when it began to threaten then-No. 2 Ford Motor (F, news, msgs).

During the ’00s, this wasn’t lost on GM. Inside the company’s headquarters, at the Renaissance Center in Detroit, there were times when it seemed as if the colossus of American manufacturing had Toyota on the brain. Toyota could do small cars, it could do family sedans, it could do SUVs. And with the arrival of the Prius in 2001, it proved it could do the future. The Japanese carmaker wasn’t just capable of building better cars than GM could, it was also prepared to mercilessly out-innovate the market leader.

Toyota was also signing up customers at an early age. In 2002, Toyota had launched a youth-oriented brand, Scion, that gained new buyers every year. It brought them into the Toyota family in the same way that GM once used Chevrolet as a launching pad for a lifetime of allegiance to the General. Toyota also had friends in Congress -- Republican senators with Toyota plants in the New Detroit of the South, who argued against bailouts for GM and Chrysler in early 2009.

This was Toyota’s moment, but opportunity also brought the start of its problems. Creative destruction had finally crippled its rival, leaving Toyota poised to dominate the global auto industry, with both its reliable, satisfying vehicles and its distinctive corporate culture.


But just as Toyota’s destiny arrived, it began to experience unanticipated karmic blowback. At the end of 2008, it reported its first loss since 1938. No one panicked, because the consensus was that almost no automakers would be spared in the downturn that was sweeping the industry. But the yen was rising, making the cars that Toyota exported more expensive. And its attempt to enter the full-size pickup market was foundering -- a classic example of a company on the rise hubristically overextending itself.

To be sure, Toyota knows how to do big. But does it really know how to be biggest?

The Toyota Way established a roadmap for hard-to-sustain greatness. When GM was the world’s largest automaker, it was also the world’s preferred target for anyone who wanted to complain about carmaking. Dealing with constant criticism was wound into its DNA and, over time, become a point of honor.

Toyota, by contrast, wanted to be huge while projecting a flawless image -- a tricky proposition when you’re operating a business that deals in complex, expensive machines made of thousands of parts and sold in dozens of countries.

With its frequently awkward divisional structure, GM was also accustomed to internal chaos and infighting. Toyota presented itself as monolithic and reassuringly calm. Bad things wouldn’t happen to it because it would use the Toyota Way to eradicate problems before they had a chance to become truly disastrous. When you’re No. 1, you have to accept that every day will be a struggle, because there’s no place to go but down. Every failure is magnified.


GM embraced this challenge by accepting periodic defeat. This did it in eventually, but its reign was long.

The gap between being No. 1 and No. 2 globally might be only 10,000 to 20,000 vehicles a quarter, but psychologically, it’s much wider. When the auto market recovers, Toyota will still find itself on top and growing. But how it handles its current crisis will determine whether the Toyota Way can survive its own success.

This article was reported by Matthew DeBord for The Big Money.


Comments
BScherrer#1
Wednesday, October 07, 2009 8:57:21 PM
The author should have mentioned other recent Toyota problems, including defective brakes on Corollas in cold climates (so they are only recalling vehicles sold in certain northern states, so don't visit Grandma in Minnesota at Christmas if you live in Kentucky), rusted Tacoma Trucks confiscated for safety and law suit reasons, and the recent racketeering charges over destroyed files and data on rollover accidents. Toyota Camrys have been called out for sloppy trim and interior panel assembly. This and the chronic recalls of Toyota vehicles in recent years certainly disprove the false image of best quality. I'll take a GM car any day.

guvnor64#2
Thursday, October 08, 2009 5:40:50 AM
How will the American consumer, who continually defend their beloved Toyota react to this? Will Lexus owners claim their flawless Lexus does not have a floor mat recall? Will the WWII Veteran (traitor) driving a Tundra admit that the rust on his flawless Tundra is the fault of Toyota's poor engineering? Probably not. Instead, since America is hell bent on wishing the Detroit automakers to fail, the Toyota, Hyundai, Kia and Honda drivers in this country should demand we fly the Japanese and Korean flags over the Capitol. I mean, this is where the American consumer's loyalty lays. Sad.

Oh well, at least me American car does not have floor mats that cause the accelerator pedal to malfunction.

Troy S.#3
Thursday, October 08, 2009 7:07:33 AM
Where did the rusting Toyota frames originate? I heard they came out of Toledo's Dana plant and then were shipped to NUMMI. Speaking of NUMMI.... It was Toyota ad GM's partner project in which GM bailed out of it's end of the deal becasue of it's bankruptcy. This forced the closure of NUMMI and the loss of 4300 American jobs.



You may not have a problem with your floor mat but, be wary of your vehicle rolling over, having the frame dismember itself from the body due to faulty body mounts, or your truck catching on fire from a faulty cruise control switch. if that's not enough to worry about, you'd better hope it doesn't have a wilderness tire or get rear ended in fear of having your vehicle catch fire. No worries though. Your vehicle will probably be at the shop more than it's on the road anyway. My ranting is silly isn't it?



My point is this. Many people allow brand loyalty to trump reality. This often leads to brand bashing the "other brands" at every possible opportunity.



Foreign auto bashers also never admit to owning many non-automotive foreign products. You know... steroes, microwaves, computers, clothes, cell phones.... Do you own any of these products?



Is it ok to own these products so long as you own a Domestic branded vehicle that may be produced in a foreign country with less American content than many foreign branded vehicles?

guvnor64#4
Thursday, October 08, 2009 7:44:37 AM
The fact that foreign car buyers fail to recognize is how the money spent on these products end up overseas. Yes, the foreign brands employ American to ASSEMBLE the cars - these workers are paid little and have lackluster benefits yet, the engineering, design, advertisement, procrument is done overseas where the bulk of employment is. And these workers are paid quite well with profits earned in America.



As for buying foreign products outside of automotive - this country does not offer a choice. Your polo shirt purchased at Macy's is made in India. You pay $50. The same shirt, made in India sold at Target is $25. We, as consumers are stupid. Now, as a part time musician, when I buy a Gibson guitar, I have a choice. Buy the American made guitar and pay more or buy the cheaper Epiphone Gibson made in Asia. Is the American made guitar better? Hell, yes. But, most important, Gibson is giving me a choice. Does Nike give me a choice? The greed of American companies sold out to cheap labor. And we, as a nation continue to purchase Wal-Mart junk because, WE DO NOT HAVE A CHOICE. At least the American automakers give the consumer a choice. And FORD, GM and Chrysler employ more people in the U.S. than the subsidized foreign automakers that are in bed with our inbred Southern Republicans.



Back in the day, Americans argued what to buy, GM, Ford or Chrysler. Plants were humming and supplying the country with great vehicles. Along comes the 70's oil embargo and the Japanese import rice burners. These cars were junk. During this time and currently, the Detroit brands can not sell in Japan. We are at a disadvantage. Now, today, consumers think their Lexus is a superior car but, in reality, it is perception. Yet, at the end of the day, a Dodge Hemi Charger will crush a Lexus.

BScherrer#5
Thursday, October 08, 2009 7:46:32 AM
Troy S should realize, that no matter who fabricated Tacoma frames, the responsibility for processing procedures by design belongs to Toyota - not Dana or anyone else. Toyota claims that they "forgot" to include the rust proofing procedure in the process. How does one "forget" a process for years on end? The American public has clearly been duped into the mindset that "foreign is better"...

qianantang #6
Thursday, October 08, 2009 7:55:47 AM
The 2009 BMW M3 model has hit the market in July 2009. It comes in varieties of colors such as non-metallic black, Alpine white non-metallic, Monte Carlo Metallic Blue as well as Darker yellow non-metallic shades. This outstanding car comes with unique features of aesthetic design, exclusive style, light alloy wheels with double spoke design, high power as well as performance, lower chassis, and re-tuned suspension.

jospeedo2 #7
Thursday, October 08, 2009 8:17:45 AM
And we wonder WHY our unemployment is so high? Its because we buy so much of foreign products. It seems to me that Americans look for the cheapest price and not necessarly for other reasons. Look at main problems from kid toys that had lead in them or the chinese drywall that lead to health problems. Its costing us more money know because we have to demolish good homes and replace it with American mad drywall. I don't know why people jump on the bandwagon with Toyota; the car interior looks cheap, its uncomfortable to sit and its under powered for their size. I will still stay with my 2004 Pontiac Grand Prix that does 30 mpg on the highway, has almost 80,000 miles on it, still has its original brakes on from the factory, and I HAVE NOT had NO PROBLEMS except for 1 burnout light-bulb. I can't believe that GM got rid of Pontiac and know Saturn. They were both good brands but the government forced them to do so due to their bankruptcy agreements. I have owned foreign cars and they don't compare to the American made cars that I have owned. This is why we are growing more and more to being a service country and not a manufacturing country is because Americans and our politic officials encourage to ship out jobs to other country's and for country's to build their products here in the states. And know we can't get those jobs back to give out to millions of Americans that are jobless and wiliness to work. Just think about this for a little bit.

BScherrer#8
Thursday, October 08, 2009 8:19:13 AM
guvnor 64 is exactly right in his comments. His insight says it like it is, and I couldn't have said it better myself. Ant the Toyota Republican Governors and Congressmen in the South did exactly what they claim to abhor: They subsidized the foreign auto transplants to their states with tax dollars, yet they tried to prevent any Government assistance to US manufacturers. How anti-American can you get?

coachdave21 #9
Thursday, October 08, 2009 9:24:06 AM
At some point, hopefully, you "intellectual" people who buy foreign cars will come to realize that one of the largest industries that drove our economy was the auto industry. When you stop buying American cars, we lose jobs. When Americans lose jobs, they stop buying other products, and then those people lose jobs. When they lose jobs....well, the cycle continues all the way up to 2009 where we stand today. That's ok though! Toyotas are built here right?

One of the biggest lies that Americans bought into was this myth. Truth be told, no matter what car you buy today, if you take care of the car, it will take care of you. No matter who makes it. But keep buying Japanese folks! You'll leave a nice economy for your children.

Outcast_Searcher#10
Thursday, October 08, 2009 9:44:37 AM
Troy, you're exactly right. Naturally, the big 3 apologists will attack you for pointing out the truth.



Consumer Reports will tell the tale in the next several years. Ford is definitely getting better. Time will tell if GM and Chrysler will come around, but with all the handouts to union labor, I seriously doubt it, and the mix of cars these companies continue to produce (and brag about), I seriously doubt it.



Also, when Toyota has a problem, they admit it, and they fix it. Good luck getting GM to admit to a problem until the Feds stand on their neck and force a recall. And this problem is EASILY dealt with and very easily avoided, by a driver with a brain.



Oh, that's right, big 3 drivers often have "loyalty", old myths, and cognitive dissonance, but little common sense.



GM completely screwed me with a P.O.S. Saturn, and blamed all the problems on me, which was ludicrous. A web search found a site where customers shared info. on how this was their way of "handling" problems across the country - blame the customer.



With behavior like this, no wonder Americans who get GREAT service on average from their foreign cars are loathe to return to the "big" 3.

© 2009 Microsoft

[doug]

updated 6:02 p.m. ET Jan. 21, 2010
Autos
Toyota recalls 2.3 million vehicles
Automaker acts after 'isolated reports' of sticking accelerator pedals

The popular Toyota Camry is among the vehicles affected by the latest recall. This photo shows a 2007 hybrid model.
msnbc.com news services
Toyota issued a recall covering 2.3 million late model cars, SUVs and pickup trucks Thursday, broadening its largest such action ever and acknowledging that potential accelerator pedal problems were deeper than previously acknowledged.

The automaker previously recalled about 4.2 million Toyota and Lexus vehicles to reduce the risk of pedal "entrapment" caused by floor mats, according to a news release issued by Toyota Motor Sales U.S.A. About 1.7 million Toyota vehicles are subject to both recalls, the company said.

“In recent months, Toyota has investigated isolated reports of sticking accelerator pedal mechanisms in certain vehicles without the presence of floor mats,” Toyota group Vice President Irv Miller said in the statement.

In "rare instances" the accelerator pedal may stick in a partially depressed position or return slowly to the idle position, he said.

Toyota previously had maintained there was no evidence of a mechanical fault linked to reported bursts of unintended acceleration that prompted the original recall last year.

As recently as November, Bob Carter, Toyota's U.S. brand chief, said there was "no evidence" to support claims that the reported safety problems could be caused by anything other than loose floor mats interfering with the accelerator pedal.

The National Highway Traffic Safety Administration had received reports of 100 incidents at the time of Toyota's first recall. Those reports included 17 crashes and five fatalities possibly linked to floor mats and accelerator pedals in Toyota cars and trucks.

One of those crashes involved a Lexus that accelerated to more than 120 mph before crashing in San Diego, killing four people.

The safety stumbles have dinged Toyota's reputation in the U.S. as a builder of dependable, high-quality cars. Last year's recall was the sixth-largest ever in the United States.

Vehicles affected by the latest recall are:

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

The previous recall affected Camry and Avalon sedans, the Prius hybrid, the Tacoma and Tundra pickup trucks, and the luxury Lexus models IS250, IS350 and ES350.

Toyota said concerned customers could call its Customer Experience Center at 1-800-331-4331.

Reuters and The Associated Press contributed to this report.

© 2010 MSNBC.com

[doug]

updated 7:31 p.m. ET Jan. 26, 2010
Autos
Toyota suspending sales of eight recalled cars
Vehicles may have a problem with the accelerator pedal sticking

The 2007 Toyota Tundra is one of the vehicles affected by the action.
The Associated Press
TORRANCE, Calif. - Toyota Motor Co. said Tuesday it was suspending U.S. sales of eight recalled vehicle models to fix accelerator pedals that stick, the latest quality problem to confront the world's No. 1 automaker.

As part of the plan, Toyota said it was halting production at five manufacturing facilities for the week of Feb. 1 "to assess and coordinate activities." There are 2.3 million vehicles involved in the recall, which was announced last week.

"This action is necessary until a remedy is finalized," said Bob Carter, Toyota's group vice president and general manager.

The Japanese automaker says the sales suspension includes the 2009-2010 RAV4, the 2009-2010 Corolla, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2007-2010 Camry, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010 Sequoia.

It was unclear how long Toyota would suspend production of the vehicles. In an e-mail to employees, company officials said, "we don't know yet how long this pause will last but we will make every effort to resume production soon." Toyota officials did not immediately return phone messages.

Toyota said the company would stop producing vehicles at plants in Indiana, Kentucky, Texas and Canada. They said no other North American Toyota facility would be affected by the decision.

The auto company said the sales suspension would not affect Lexus or Scion vehicles. Toyota said the Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, would remain for sale.

Toyota said last week it was recalling 2.3 million vehicles in the U.S. to fix accelerator pedals with mechanical problems that could cause them to become stuck.

That announcement followed a larger recall months earlier of 4.2 million vehicles because of problems with gas pedals becoming trapped under floor mats, causing sudden acceleration. That problem was the cause of several crashes, including some fatalities.

© 2010 The Associated Press. All rights reserved.

[doug]

updated 8:18 a.m. ET Jan. 27, 2010
Autos
Toyota suspending sales of eight recalled cars
Vehicles may have a problem with the accelerator pedal sticking

The 2007 Toyota Tundra is one of the vehicles affected by the action.
The Associated Press
TORRANCE, Calif. - Toyota is suspending U.S. sales of eight car and truck models to fix sticking gas pedals and halting production lines at plants from Texas to Canada to deal with the problem, the latest to confront the world's No. 1 automaker.

The suspended sales, announced Tuesday, involve a significant portion of Toyota Motor Co.'s fleet and some of its most popular vehicles, including the Camry and Corolla. As part of the plan, Toyota is halting some production at five assembly plants beginning the week of Feb. 1 "to assess and coordinate activities."

There are 2.3 million vehicles involved in the recall, which was announced last week. Toyota has said it was unaware of any accidents or injuries due to the pedal problems associated with the recall, but could not rule them out for sure.

"This action is necessary until a remedy is finalized," said Bob Carter, Toyota's group vice president and general manager.

The Japanese automaker said the sales suspension includes the following models: the 2009-2010 RAV4, the 2009-2010 Corolla, the 2007-2010 Camry, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010 Sequoia.

Aaron Bragman, an auto analyst for the consulting firm IHS Global Insight in Troy, Mich., said Toyota typically sells about 65,000 Camrys and Corollas a month, and the frozen sales could strike the company's bottom line and reputation for quality.

"That's huge if they can't sell these and they don't have a fix identified. They need to go and get a solution to this fast," Bragman said.

The news came hours after Toyota said it plans to sell 8.27 million vehicles worldwide this year, up 6 percent from 2009. Toyota sold 7.81 million vehicles worldwide in 2009, down 13 percent from the previous year. The number includes group companies Daihatsu Motor Co., which makes small models, and truckmaker Hino Motors.

Toyota sold more than 34,000 Camrys in December, making the midsize sedan America's best-selling car. It commands 3.4 percent of the U.S. market and sales rose 38 percent from a year earlier. Sales of the Corolla and Matrix, a small sedan and a hatchback, totaled 34,220 last month, with 3.3 percent of the market and sales up nearly 55 percent from December of 2008.

It was unclear how long Toyota would suspend production of the vehicles. In an e-mail to employees, company officials said, "we don't know yet how long this pause will last but we will make every effort to resume production soon."

Toyota officials did not immediately return phone messages.

The automaker said the move would affect plants in Princeton, Ind., Lafayette, Ind., Georgetown, Ky., San Antonio, Texas, and a facility in Ontario, Canada. About 300 workers who build V8 engines at a Toyota plant in Huntsville, Ala., will also be affected, said Stephanie Deemer, a spokeswoman for the plant.

Deemer said workers there would have the option of receiving additional training, take vacation or unpaid leave.

Toyota said no other North American Toyota facility would be affected by the decision.

Toyota dealers said they were concerned the move would hamper sales and were hopeful parts to fix the problem could be distributed quickly.


Video: Toyota suspends sales of eight models


"They're going the extra mile to reassure people that they really care about the customers," said Earl Stewart, owner of a Toyota dealership in North Palm Beach, Fla. "It is something that's going to be at least a short-term hardship on the dealers, and especially on Toyota."

The auto company said the sales suspension would not affect Lexus or Scion vehicles. Toyota said the Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, would remain for sale.

Toyota said last week it was recalling 2.3 million vehicles in the U.S. to fix accelerator pedals with mechanical problems that could cause them to become stuck.

The announcement followed a larger recall months earlier of 4.2 million vehicles because of problems with gas pedals becoming trapped under floor mats, causing sudden acceleration. That problem was the cause of several crashes, including some fatalities.

Owners with questions can call the Toyota Customer Experience Center at (800) 331-4331.

© 2010 The Associated Press. All rights reserved.

[doug]

updated 10:20 p.m. ET Jan. 27, 2010
Autos
Toyota recalls 1.09 million more vehicles
Company says it has begun producing new pedals for affected models
The Associated Press
TOKYO - Toyota Motor Corp. said Thursday that it will recall an additional 1.09 million vehicles in the United States over floor mat problems.

Toyota said the new recall would affect five models — 2008-2010 Highlander, 2009-2010 Corolla, 2009-2010 Venza, 2009-2010 Matrix and 2009-2010 Pontiac Vibe.

Toyota spokesman Hideaki Homma said Toyota decided to recall more vehicles because of the potential risk accelerator pedals being stuck by floor mats. Toyota has already recalled 4.26 million vehicles in the U.S. over floor mat problems.

Toyota said earlier that it has production has begun on redesigned pedals to fix the problems.

Toyota worked on the design with CTS Corp., which supplied the pedals in 2.3 million of the recalled vehicles. Pedals featuring the new design are in full production at CTS, Toyota says.

It was found that the faulty pedals could lead to unintended acceleration in rare instances.

The automaker also says it is working with the supplier to test modifications to existing pedals and plans to roll those out as soon as possible.

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 7:15 p.m. ET Jan. 28, 2010
Autos
No easy answer to why Toyota accelerators stick
Experts say it is likely a series of issues rather than a single problem
Associated Press
Earl Stewart, owner of Earl Stewart Toyota, in North Palm Beach, Fla., gestures to the accelerator of a recalled Toyota.
WASHINGTON - For a century, the basic idea behind pressing the accelerator on a car has been pretty straightforward. What's going wrong with some Toyotas isn't simple.

Experts say the sudden acceleration problem that has put the brakes on Toyota sales and production is likely not a single problem but an alignment of complicated interconnected conditions.

Nothing illustrates that more than the contradictory statements from the two companies involved. Toyota Motor Corp. is telling the government that it thinks a friction problem in its accelerator pedal mechanisms may make the pedal "harder to depress, slower to return, or, in the worst case, mechanically stuck in a partially depressed position."

CTS Corp., the Elkhart, Ind., supplier that makes the devices for Toyota, said in a statement Wednesday that the friction problem accounts for fewer than a dozen cases of stuck accelerators, "and in no instance did the accelerator actually become stuck in a partially depressed condition."

If there were a simple answer, a one-thing gone wrong glitch with a fix, it's unlikely Toyota would be in the mess it's now in.

When Toyota recalled 4.2 million vehicles last fall, it said it was because floor mats were interfering with the pedals. That may have been an issue, but now the company is saying it's latest recall of 2.3 million vehicles is linked to worn pedal mechanisms that increase friction in certain conditions and cause the accelerator to stick sometimes.

On Thursday, Toyota announced it was extending the recalls to China and Europe and recalling an additional 1.09 million vehicle in the U.S.

Outside safety experts say possible causes also include the complicated electronic sensors that relay the message from the gas pedal to the engine, the design and location of the sensor system, a lack of a fail-safe override mechanism, and even a certain media-fed awareness that puts more people on the lookout for the problem.


Academic researchers say the rarity of sudden acceleration problems is a telling sign to the difficulty of determining what's going wrong.

"This is very unusual and happens on a very rare circumstance, and a whole bunch of things have to happen simultaneously," said Raj Rajkumar, head of Carnegie Mellon University's automotive research lab. It's like lots of unlikely lottery hits happening at the same time, but with millions of Toyotas, they do happen.

Sean Kane, president of Safety Research and Strategies Inc., a Massachusetts-based car safety investigation and advocacy group, said he's certain there is no single cause. He said he's logged thousands of stuck gas pedal complaints.

"We are convinced that this a multifaceted problem," Kane said. "You've got a multitude of problems that are coming to the surface that result in one thing: unintended acceleration."

How an accelerator pedal is supposed to operate is anything but complicated. Stepping on the pedal starts a chain of events to open the throttle, sending more gas and air into the engine. The car goes faster. Stop pressing on the gas, the engine's speed decreases and the car slows down.

At first, the pedal was directly linked to the throttle, or hydraulics did the job. Then more than a decade ago, electronics started handling the relay. It's part of an overall switch to computer controls seen throughout the transportation industry.

Most throttle systems on modern vehicles are electronic. Typically, the driver steps on the accelerator and gets resistance back from a spring. The movement activates components in the pedal assembly that send an electronic signal to the engine-control computer, and a signal from the computer feeds more fuel to the engine.

In documents provided to the government, Toyota indicated the mechanical problem that causes the pedal to stick occurs when water condenses inside the system when the heater is on. The company also thought a material used to make the pedal system was a problem, so it switched to a different material, but the problem persisted.

Toyota spokesman Mike Michels said Wednesday that the company wouldn't discuss the mechanics of the pedal and the possible causes of the problem "because the engineering investigation is ongoing."


Craig Hoff, a professor of mechanical engineering at Kettering University in Flint, Mich., said the pedal assemblies typically contain a Teflon bearing that would not be affected by temperature, so it's unlikely the problem is connected to weather conditions. He has not specifically studied the Toyota case but said the problem could be linked to the mechanical spring that pushes back when someone hits the accelerator.

"If I was going to sit here and guess, I'd start thinking about something is binding — either there's friction that's too high somewhere or another issue is that spring is not strong enough to push back," said Hoff, who has worked on accelerator systems.

The problem could also be connected to the electronics relay system — something Toyota highlighted in a video more than a dozen years ago touting its "electronic throttle control system with intelligence."

A few years ago, the company sent out a technical bulletin saying some cars accelerate on their own between 38 and 42 mph, and it reprogrammed the electronics with new software codes, Kane said.

John Heywood, director of the Sloan Automotive Lab at MIT, said because Toyota is the only automaker having this problem, it could be something specific to its design, such as the location and integration of the electronics relay sensor.

"These are very complex systems," Rajkumar said. "One ought to expect that there will be glitches like these."

CTS, which relies on Toyota for 3 percent of its annual sales, supplies similar parts for Honda Motor Co., Nissan Motor Co. and Mitsubishi Motors Corp.

But auto suppliers typically design parts based on the specifications of the individual automaker, and a part's installation and operation can vary based on the vehicle. The three other automakers said they had received no complaints about their accelerator pedals.

A key problem appears to be the absence of a mechanism that overrides the accelerator if the gas and brake pedals are pressed at the same time, Kane said. In the recall last year involving floor mats, Toyota told the government it would retrofit some vehicles with that feature.


Such a mechanism, called a "brake-to-idle algorithm," is an important fail-safe, Kane said. He said some other automakers already have them, and Rajkumar said more will install them in the future.

In the late 1980s, the government investigated complaints that Audi 5000 vehicles would suddenly accelerate when the vehicle shifted from park to drive or reverse. The National Highway Traffic Safety Administration found that most of the incidents were caused by drivers putting their feet on the wrong pedals.

But the safety agency found that vehicle recalls were necessary for the safety of the Audi 5000, whose sales plummeted after a major 1986 recall. Audi modified the accelerator and brake pedals, installed systems that prevent shifting from park unless the brake is pressed, and corrected idle speed control systems to address the problem.

Heywood, who isn't familiar with the specifics of Toyota's situation but has studied sudden acceleration problems in other cars and was part of a panel looking into the Audi problem, said media attention caused more people to be aware of the Audi problem, and then more people reported it.

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 7:55 p.m. ET Jan. 29, 2010
Autos
For Toyota drivers, confusion and anger
CEO: ‘I am very sorry that we are making our customers feel concerned’

"I'm stuck with this car," said Tony Raasch of Hales Corners, Wis., who said he hit another driver in his 2010 Corolla two weeks ago when the car suddenly accelerated. "I really don't know what to do. I just feel — I guess — ripped off is the best way to put it."
The Associated Press
Video: Toyota looks to soothe anxious drivers

Toyota executives have been virtually silent amid a recall of millions of their cars because gas pedals can become dangerously stuck. For their customers, oh, what a feeling — fear, frustration, confusion and anger.

Since Tuesday, when the Japanese automaker said it would stop making and selling some of its top-selling models, the company has had few answers for dealers and drivers — most notably when Toyota owners could get their cars fixed and hit the road without worrying.

"I'm stuck with this car," said Tony Raasch of Hales Corners, Wis., who said he hit another driver in his 2010 Corolla two weeks ago when the car suddenly accelerated. "I really don't know what to do. I just feel — I guess — ripped off is the best way to put it."

Toyota first recalled 2.3 million vehicles, including the popular Camry and Corolla, because of faulty gas pedals. Later in the week, it expanded the recall to Europe and recalled 1.1 million more in the U.S. because of floor mats that can catch the accelerator.

Almost certainly adding to driver frustration, Toyota is sending new gas pedal systems to its factories, not to dealerships that want the parts to take care of customers' cars, The Associated Press learned.

It took until Friday for CEO Akio Toyoda to make his first public comments about the recalls. Buttonholed by a camera crew at the World Economic Forum in Davos, Switzerland, he told Japanese broadcaster NHK: "I am very sorry that we are making our customers feel concerned."

In its worst crisis in recent memory, the company has communicated with the public in a series of very limited statements from spokesmen. One of them, Brian Lyons, said he was restricted to describing the problem as "rare and infrequent."

For days, there was no indication of how long it might take to get the affected Toyotas fixed, whether the fix would be a repair or a replacement, or whether it was even safe for drivers to take their cars to the dealership.

The company finally said Friday that details on the fix will be made available next week and should take about a month to implement.

Among Toyota's famously loyal customer base, frustration and anger mounted through the week.


Laurie Strong, a nurse from Bristol, R.I., drives a 2010 Camry and said she noticed the gas pedal seemed too sensitive — "0 to 40 in a parking lot" — when she bought the car last summer. She went to the dealership Wednesday and refused to drive it anymore.

Strong, who was ultimately given a Kia, said she had repeatedly dialed a Toyota hot line only to get a message saying it could not handle calls. A Toyota customer for years, she now says she's put off.


"I would be less upset and less confused if I had a person on the other end of the phone who could talk to me and tell me what my options are — what they think quite honestly, what the time frame for figuring this out and putting this into motion."

It made for a maddening week for Toyota dealers, too. Jason Stewart, general manager of a dealership in North Palm Beach, Fla., said he doesn't know what to tell customers and has found out more about the problem from watching the news than from Toyota.

"People on the phone, they're very scared," said Douglas Lima, the service manager at Toyota Central in downtown Los Angeles. "I received phone calls screaming and yelling and using bad words. You just hear them out."

On Friday, Toyota's Web site was featuring bold, brightly colored ads for its cars and trucks, like the Prius and the 4Runner. At the bottom of the home page was a small strip with a link to information on the recall.

Even some prominent rental-car companies went further than Toyota did, sending their customers e-mails throughout the week keeping them posted — in most cases saying they were removing all of the affected models from their fleets.

Toyota's response, by contrast, has left experts in crisis management scratching their heads. Some wondered why Toyota didn't mount a full-court press — full-page ads in newspapers, executives readily available to the morning shows, ramped-up customer service.

Toyota is certainly no stranger to advertising. The company alone — not its dealers — spent $629.4 million on it in the first nine months of last year, according to Kantar Media, which tracks advertising spending.

A simple, honest, humble message would have gone a long way, said Jonathan Bernstein, president of Bernstein Crisis Management. He said the company should have sent the word out online, by e-mail, with letters — whatever it takes.

His suggestion: Toyota should say it was as surprised as anyone by the scope of the problem and deeply regrets the inconvenience, and pledge to get up to speed as quickly as possible and provide regular updates.

"Anytime there's a threat to health or safety, there's nothing that creates bigger concern. Nothing that freaks people out more," he said. "You're dealing with very intense feelings, and that requires sensitive and appropriate communications."


The Associated Press requested interviews Friday with Yoshi Inaba, chairman and CEO of Toyota Motor North America, the company's top U.S. executive. It also requested interviews with other top executives. A spokesman said he would look into the request. Telephone and e-mail messages left for the safety public relations team at Toyota were not returned Friday.

In the meantime, drivers like Johnathan Jones, who lives in Fort Mitchell, Ala., and has a 30-mile commute each way in his 2009 Tundra, will keep waiting.

"I've got a $30,000 vehicle and they don't even know how to fix it," he said, huffing. "To me, it's a big safety hazard with my children. I don't want to even put them in there."

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 3:16 p.m. ET Jan. 30, 2010
Autos
Feds approve Toyota gas pedal remedy
Dealers could get parts by Thursday or Friday, officials say

Toyota models that have been withdrawn for sale, identified by a single windshield wiper pointing skyward, are parked in a Los Angeles storage lot on Thursday.
The Associated Press
DETROIT - Toyota Motor Corp. received clearance from federal regulators on a fix for the company's sticky gas pedals, three people briefed on the matter said on Saturday.

Two dealers said that Toyota plans to make the announcement Monday morning. One says that dealers could get parts as early as Thursday or Friday.

A Department of Transportation official confirmed that the National Highway Traffic Safety Administration did not object to Toyota's repair plans. Technically NHTSA's approval is not required, but Toyota would be reluctant to proceed if the government raised objections.

All three people asked not to be identified because the announcement had not been made.

Telephone messages left with Toyota spokesmen were not immediately returned.

Toyota has recalled 4.2 million vehicles worldwide because the gas pedal systems can stick.

'Safety hazard'
Toyota dealers have been complaining for days that the automaker has left them in the dark about the nature of the gas pedal problem, when and how it will be fixed, and what to tell customers fearful their accelerators will get stuck and cause their cars to crash.

Toyota owners were both confused about what to do with their cars and angry that the company had no any answers on when a fix would be available.

"I've got a $30,000 vehicle and they don't know how to fix it," said Johnathan Jones, a salesman from Fort Mitchell, Ala., who said he won't put his 10-year-old twins in his 2009 Toyota Tundra. "To me, it's a big safety hazard with my children."

The National Highway Traffic Safety Administration has attributed five deaths and 17 injuries to unintended acceleration in Toyota vehicles since 2006, but it could not say whether any of those involved vehicles covered by the recall.

Toyota stopped selling eight U.S. models, including the top-selling Camry, on Tuesday. It also announced that it will stop building them until the problem is fixed.

The automaker blamed the problem on condensation in the pedal assembly, which includes the pedal, a curved arm that goes into the engine compartment, and springs that send the pedal back to its resting position when the driver eases up on the gas.

The condensation creates friction that can cause a delayed return of the pedal or, in rare cases, sticking.


Toyota said that not all of the models listed in the recall have the faulty gas pedals, which were made by CTS Corp. of Elkhart, Ind.

The recall in the U.S. covers 2.3 million vehicles and involves the 2009-10 RAV4 crossover, the 2009-10 Corolla, the 2009-10 Matrix hatchback, the 2005-10 Avalon, the 2007-10 Camry, the 2010 Highlander crossover, the 2007-10 Tundra pickup and the 2008-10 Sequoia SUV. The recall has been expanded to models in Europe and China.

The U.S. House Oversight and Government Reform Committee is launching an investigation. It has scheduled a Feb. 4 hearing titled "Toyota Gas Pedals: Is the Public at Risk?" and asked Yoshi Inaba, chairman and CEO of Toyota Motor North America, to testify. Separately, a House investigative panel is planning a Feb. 25 hearing.

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 1:19 p.m. ET Jan. 31, 2010
Toyota is part of a list of issues for Japan Inc.
Sony, JAL problems add up to a hit on the country’s industrial reputation
Associated Press
Japan Airlines, a once proud flag carrier, has filed for bankruptcy, saddled with billions in debt.
The Associated Press
TOKYO - Toyota is the latest Japanese corporate icon making headlines for all the wrong reasons.

News of the automaker's massive vehicle recalls over faulty gas pedals in the U.S. came just days after Japan Airlines, a once proud flag carrier, filed for bankruptcy, saddled with billions in debt.

Sony has lost its lead in consumer gadgets to the likes of Apple Inc. and has suffered its own quality mishaps. Honda, Japan's No. 2 automaker, is recalling 646,000 cars worldwide because of a faulty window switch.

Taken together, Japan Inc.'s stellar reputation for quality has taken a hit — just as China is about to overtake it as the world's No. 2 economy and rising South Korean companies compete ever more aggressively.

What went wrong with the economic giant that arose from the ashes of World War II?

The problems that confront Toyota, Sony and JAL differ, but experts say their struggles have some common themes: the perils of global expansion, a tendency to embrace the status quo, and smugness bred from success or a too-big-to-fail mentality.

"Arrogance and some complacency came into play, driven by the idea that their ranking as No. 1 producer of quality goods wasn't at risk," said Kirby Daley, a veteran Tokyo trader who is now chief strategist at Newedge Group, a financial services firm in Hong Kong.

The global economic crisis helped to expose weaknesses, he said. "There was nowhere to hide."

Added to the mix for Toyota and Sony is intense competition from upstarts in South Korea, China and elsewhere in Asia.

"They can offer products as good as Japanese at much lower cost, even though quality of Japanese products is on the decline," said Shinichi Ichikawa, chief strategist at investment bank Credit Suisse.

Some new Asian rivals, particularly in electronics, learned their techniques from Japanese operations set up around the region.

Cutting costs to stay competitive while meeting growing demand, Toyota, Sony and others compromised on quality control as they tried to reach ever-larger sales targets, analysts say.

Toyota adopted the practice of using the same part across a range of models — saving vast sums of money but exposing itself to the risk that even a small defect could cause global mayhem for the company.

It also faced difficulties ensuring quality as its global sales expanded rapidly, reaching 8.9 million vehicles in 2008, when it displaced General Motors as the world's biggest automaker. Experts say its growth outpaced management's ability to anticipate looming problems.

The result: recalls of more than 7 million vehicles in the U.S., Europe and China for problems with their accelerators and floor mats, and the suspension last week of U.S. sales and production of eight models including the Camry, America's top-selling car.

It's a "terrible blow" for Toyota because its identity is so closely linked to quality and the company seemed slow to recognize the problems, said Kenneth Grossberg, a marketing professor at Waseda University who has lived in Japan for 16 years.

"This is the company of zero defects," he said. "How could such a major fault get past them? It violates their operating principle."

As far back as March 2007, Toyota started getting reports of gas pedals being slow to rise after being stepped on. Engineers fixed the problem in the Tundra pickup early in 2008, but troubles persisted in other models, eventually leading Toyota to announce massive recalls for the accelerator and floor mats that could trap the gas pedal.

Grossberg said a common problem at Japanese companies is "group think" that makes it hard for an individual to raise a troublesome issue.

"It either falls flat and people ignore it, or it creates a problem for the individual who brings it up," he said.

Sony started facing problems after it misjudged several critical market trends.

It was slow to predict the switch to LCD televisions and fell behind South Korea's Samsung Electronics Co., which zoomed ahead to become a market leader.


Content with the success of the Walkman, the portable music player that became a global hit in the 1980s. Sony was slow to jump into digital players. It has been hammered by Apple's iPod, as well as by cheaper gadgets and consumer electronics from other Asian competitors.

With Sony's empire sprawling into finance, movies and other businesses, some analysts said the corporation was losing its focus. In 2006, it recalled nearly 10 million laptop batteries after some caught on fire.

The company is still losing money even as CEO Howard Stringer wins praise for taking it back to basics.

At Japan Airlines, problems had festered for decades but were repeatedly papered over because of Japan's reluctance to let major companies go under.

It became the victim of its own ambitions when risky investments in foreign resorts and hotels went bad after Japan's property and stock bubble burst in the early 1990s. Bloated pension and payroll costs, as well as a network of unprofitable but politically necessary domestic routes, led to government bailouts.

JAL had a good reputation for comfortable travel, but its lavish running costs had "generally been something of an industry joke," said Peter Harbison of the Sydney-based Centre for Asia Pacific Aviation.

Quality, too, eventually proved problematic: A spate of safety lapses tarnished JAL's image, and its rival, All Nippon Airways Co., benefited.

And while filing for bankruptcy with $25.6 billion in debt was an embarrassment, analysts expect JAL to slim down and emerge healthier.

Toyota, too, will bounce back, they say.

"Toyota expanded too rapidly, and that's always a risk," said Martin Schulz, an economist at Fujitsu Research Institute. "But they will get this quality problem under control."

In Japan, reaction to Toyota news has been more muted because the recall doesn't affect models in the domestic market. Japanese are proud of Toyota's leading role on the roads, including its move into hybrid and other green vehicles.

So far, the automaker's sterling reputation is holding up at home, partly because Japanese often assume that Japan-made products are better than those made abroad. Toyota's Japanese models use a different parts supplier than CTS Corp., the American parts maker rushing to fix the faulty gas pedals.

Still, the blaze of bad publicity has struck at the idea of Japan as a technology powerhouse where companies can be world leaders despite the nation's deeper problems of an aging population, mounting debt and anemic economic growth.

Toyota must take "urgent measures" to regain consumers' confidence, the Yomiuri newspaper said in an editorial Sunday.

"For other Japanese automakers and manufacturers, it's not somebody else's problem. They should keep in mind that safety and quality make the foundation of public trust in the Japanese way of manufacturing."

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 9:50 a.m. ET Feb. 1, 2010
Toyota to dealers: Parts to fix pedals on way
Auto giant has recalled 4.2 million vehicles but technicians need training
Associated Press
Toyota's 4.2 million customers affected by the recall will have to wait for repairs, while dealers are receiving parts to fix the sticky gas pedals.
The Associated Press
Video: Toyota CEO ‘confident’ over accelerator fix

WASHINGTON - Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end of this week as the automaker apologized to customers and tried to bring an end to a recall that has affected 4.2 million vehicles worldwide.

The company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open 24 hours to fix the 2.3 million cars and trucks affected by the recall in the U.S.

Technical bulletins on how to install the new parts should arrive at dealers by midweek, the company told dealers in an e-mail. It was not clear exactly when repairs would start, although dealers have said they'll begin as soon as possible.

The automaker also said Monday it would suspend production of eight U.S. models affected by the recall for this week, with factories restarting on Feb. 8. The company suspended sales of the models last week until repairs can be made.

Jim Lentz, president and chief operating officer of Toyota Motor Sales, said in the statement that nothing is more important than customer safety.

In a video clip released by the automaker, Lentz said he wanted to "sincerely apologize to Toyota owners. I know that our recalls have caused many of you concern and for that I am truly sorry."

"Toyota has always prided itself on building high-quality, durable cars that customers can depend on and I know that we've let you down," Lentz said.

Lentz, in an interview on NBC's "Today," said the automaker was "confident that we have the fix" for the gas pedal system. He said the company first developed a report on the problems in late October, and he denied that Toyota had delayed addressing the problem.

"I drive Toyotas. My family members drive Toyotas ... I would not have them in products that I knew were not safe," Lentz said.

Tammy Darvish, a dealer in the Washington, D.C., area, said she expects to get parts Thursday night or Friday morning, and her dealership will begin repairs immediately, staying open around the clock.

Darvish said she has set up a 24-hour hotline for her 30,000 Toyota customers and had already begun to schedule appointments for later this week. She estimated it could take about two weeks for all the vehicles to be fixed.

"No matter what Toyota does, they always do it right," Darvish said. "They might be a little slow in coming out, but that's because they're diligent."

Toyota recalled the vehicles on Jan. 21, determining that excess friction in the gas pedal assembly could in rare cases cause the pedals to stick.

Engineers traced the problem to a friction device in the assembly that is supposed to provide the proper pedal "feel" by adding resistance, Toyota said in a statement.

The device has a shoe that rubs against a nearby metal surface during normal pedal use. But wear and environmental conditions can over time cause the pedals to not operate smoothly or in rare cases stick partially open.


The company said a steel reinforcement bar will be installed, reducing the friction.

"With this reinforcement in place, the excess friction that can cause the pedal to stick is eliminated," the statement said. "The company has confirmed the effectiveness of the newly reinforced pedals through rigorous testing on pedal assemblies that had previously shown a tendency to stick."

The National Highway Traffic Safety Administration told Toyota last week that it was satisfied with the repair plan. Legally Toyota did not need NHTSA's approval, but the company would be unlikely to proceed without the government's blessing.


Toyota told its dealers in an e-mail that they should determine what vehicles to repair first. The company said it "strongly recommends dealers prioritize consumer vehicles first, followed by dealer owned inventory." The repairs are expected to take about 30 minutes of work, and drivers should not notice any change in the feel of the pedal.

Owners are expected to receive information by mail beginning this week. The company will cover all repair costs.

Since the recall was announced, dealers have been in the difficult position of telling angry customers that they have no parts to fix the cars.

The recall in the U.S. includes the 2009-10 RAV4 crossover, the 2009-10 Corolla, the 2009-10 Matrix hatchback, the 2005-10 Avalon, the 2007-10 Camry, the 2010 Highlander crossover, the 2007-10 Tundra pickup and the 2008-10 Sequoia SUV. It also has been expanded to another 1.9 million vehicles in Europe and China.

Toyota said that not all the models of Camry, RAV4, Corolla and Highlander listed in the recall have the faulty gas pedals, which were made by CTS Corp. of Elkhart, Ind. Dealers can tell which models have the CTS pedals. Models made in Japan, and some models built in the U.S., have pedal systems made by another parts supplier, Denso Corp., which function well.

All Matrix, Avalon, Tundra and Sequoia models covered by the recall have the faulty pedals.

Toyota announced late Friday that it would begin shipping new gas pedal systems to dealers as well.

On Sunday, Toyota took out full-page ads in 20 major newspapers to reassure customers.


But crisis management experts said the company's reputation for impeccable reliability has been damaged.

Meanwhile, Consumer Reports, an influential publication for car buyers, on Friday suspended its "recommended" status for the eight recalled Toyota models.

The pedal recall is separate from another recall involving floor mats that can bend and push down accelerators on certain Toyota and Lexus models. The two recalls combined affect more than 7 million vehicles worldwide.

Toyota said Monday it is in the process of recalling vehicles to fix the floor mat problem. Some of its cars are affected by both recalls, and the company said it intends to fix both problems at the same time.

The repairs will not bring an end to public scrutiny on how Toyota handled the problems.

The U.S. House Oversight and Government Reform Committee is launching an investigation. It has scheduled a Feb. 10 hearing titled "Toyota Gas Pedals: Is the Public at Risk?" and asked Yoshi Inaba, chairman and CEO of Toyota Motor North America, to testify. Separately, a House investigative panel is planning a Feb. 25 hearing.

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 10:55 a.m. ET Feb. 1, 2010
Business
NYT: Toyota’s slow awakening to deadly issue
Carmaker’s handling of recall shows how it lost sight of its bedrock principle
By Bill Vlasic
The New York Times
DETROIT - The 911 call came at 6:35 p.m. on Aug. 28 from a car that was speeding out of control on Highway 125 near San Diego.

The caller, a male voice, was panic-stricken: “We’re in a Lexus ... we’re going north on 125 and our accelerator is stuck ... we’re in trouble ... there’s no brakes ... we’re approaching the intersection ... hold on ... hold on and pray ... pray ...”

The call ended with the sound of a crash.

The Lexus ES 350 sedan, made by Toyota, had hit a sport utility vehicle, careened through a fence, rolled over and burst into flames. All four people inside were killed: the driver, Mark Saylor, an off-duty California Highway Patrol officer, and his wife, daughter and brother-in-law.

It was the tragedy that forced Toyota, which had received more than 2,000 complaints of unintended acceleration, to step up its own inquiry, after going through multiple government investigations since 2002.

Yet only last week did the company finally appear to come to terms with the scope of the problem — after expanding a series of recalls to cover millions of vehicles around the world, incalculable damage to its once-stellar reputation for quality and calls for Congressional hearings.

With prodding from the National Highway Traffic Safety Administration, Toyota halted production and sales of eight models, including its top-selling Camry sedan.

And late last week, the government allowed the company to go ahead to try yet another new fix for its vehicles, which it is expected to announce on Monday.

At almost every step that led to its current predicament, Toyota underestimated the severity of the sudden-acceleration problem affecting its most popular cars. It went from discounting early reports of problems to overconfidently announcing diagnoses and insufficient fixes.

As recently as the fall, Toyota was still saying it was confident that loose floor mats were the sole cause of any sudden acceleration, issuing an advisory to millions of Toyota owners to remove them. The company said on Nov. 2 that “there is no evidence to support” any other conclusion, and added that its claim was backed up by the federal traffic safety agency.

But, in fact, the agency had not signed on to the explanation, and it issued a sharp rebuke. Toyota’s statement was “misleading and inaccurate,” the agency said. “This matter is not closed.”

The effect on Toyota’s business is already being felt. Its sales in the United States in January are expected to drop 11 percent from a year earlier, and its market share in the United States is likely to fall to its lowest point since 2006, according to Edmunds.com, an automotive research Web site.

The company has not yet projected the cost of its recalls and lost sales. But a prolonged slowdown in sales could substantially hurt a company that once minted profit.

Toyota’s handling of the problem is a story of how a long-trusted carmaker lost sight of one of its bedrock principles.

Company failed to pull the 'andon cord'

In Toyota lore, the ultimate symbol of the company’s attention to detail is the “andon cord,” a rope that workers on the assembly line can pull if something is wrong, immediately shutting down the entire line. The point is to fix a small problem before it becomes a larger one.

But in the broadest sense, Toyota itself failed to pull the andon cord on this issue, and treated a growing safety issue as a minor glitch — a point the company’s executives are now acknowledging in a series of humbling apologies.

“Every day is a lesson and there is something to be learned,” Yoshimi Inaba, Toyota’s top executive in North America, said at the Detroit auto show in January. “This was a hard lesson.”

In Davos, Switzerland, on Friday, Akio Toyoda, the grandson of Toyota’s founder who now heads the company, told a Japanese broadcaster that he was “deeply sorry” for the problems.


Toyota’s safety problems may prove to be a hard lesson for the N.H.T.S.A., as well. Six separate investigations were conducted by the agency into consumer complaints of unintended acceleration, and none of them found defects in Toyotas other than unsecured floor mats.

In at least three cases, the agency denied petitions for further investigative action because it did not see a pattern of defects and because of a “need to allocate and prioritize N.H.T.S.A.’s limited resources” elsewhere, according to agency documents.

'Everybody's a Toyota lawyer now'

The investigations, and Toyota’s handling of the problem, will be the subject of Congressional hearings.

But the publicity surrounding the accident near San Diego, and Toyota’s repeated inability to quell consumer concerns with a definitive solution, has also prompted a flood of lawsuits reminiscent of the litigation a decade ago arising out of the rollovers of Ford Explorers equipped with Firestone tires.

In addition to cases related to individual accidents, several class-action suits have been filed against Toyota. The cases are expected to focus on why the government and the carmaker were unable to identify problems beyond the floor mats, despite mounting instances of runaway cars.

David Ennis, a Washington lawyer, said he was working on three lawsuits that had been in the works for five months. “Over the last 24 hours, everybody’s a Toyota lawyer now,” he said last week.


Toyota now believes that the trouble with its cars is twofold — a combination of loose floor mats that can interfere with accelerator pedals, and a pedal that itself can stick when a driver depresses it.

Toyota has told its dealers that it will announce its fix for the faulty accelerators on Monday, but has yet to release details. The CTS Corporation, the supplier of the pedals used in recalled models, is making replacement parts. But Toyota is also expected to try to repair or modify the pedals in some vehicles.

Before last August, Toyota had issued three limited recalls to replace floor mats and change an interior part that could catch on accelerator pedals.

But after the fatal crash near San Diego, and the public release of the 911 tape, Toyota was forced to, as it said in the fall, “take a closer look.”

That crash, said Clarence M. Ditlow, executive director of the Center for Auto Safety in Washington, “was a watershed event.”

“It captured on tape the deaths of four people in an uncontrolled acceleration where the driver was an experienced highway patrol officer,” he said. “If he couldn’t bring the car under control, who could?”

A lawyer for the Saylor family said he wished that the federal government had acted more quickly about concerns over the sudden acceleration.

“They’re clearly starting to become more interested in the problem and more attentive to it,” said the lawyer, John Gomez, of San Diego. “Do I wish they would have done more sooner? Obviously.”

In one federal inquiry on Toyota models built from 2002 to 2005, investigators found that 20 percent of the 432 complaints studied involved “sudden or unintended acceleration.”

But no defects were uncovered in any of the vehicles, and the rate of incidents was considered “unremarkable” in the context of the millions of cars on the road.

The petitioner in that case, Jordan Ziprin of Phoenix, said the regulators had focused exclusively on mechanical issues with his car, a 2002 Camry.

“I believe this is an electronic issue, but they have been avoiding that possibility entirely,” Mr. Ziprin said in an interview.

Electronic system at fault?

Several lawsuits against Toyota also suggest that the company’s electronic system could be at fault.

A Toyota spokesman said the company had looked extensively at its computerized electronic throttle system, which controls the speed of its cars, and had found no faults.

“If we found anything, we would take appropriate action,” said the spokesman, Mike Michels. “But we continue to think it’s entirely unlikely that an electronic malfunction is the cause.”

A lawyer for a California man whose wife died in a 2007 crash of a Camry said the company was avoiding a potentially more pervasive problem by focusing on mats and stuck pedals, rather than its electronics.

“There are thousands of these complaints, and we’re not seeing floor mats and we’re not seeing stuck throttles,” said the lawyer, Donald H. Slavik, of Milwaukee. The traffic safety agency “simply doesn’t have the resources to analyze the electronic systems of these cars.”

The agency, which is part of the Transportation Department, has stepped up its oversight of Toyota drastically since the fatal accident that involved the Saylor family.


Agency officials, who spoke on the condition of anonymity because the case was still being investigated, say their responsibility is to identify defects in autos, not to develop remedies to fix them. That responsibility, these officials said, rests with the automaker.

Many complaints by consumers were eliminated by the agency during its investigations because of possible driver error, or the lack of sufficient information about the circumstances of the incidents.

The agency separated braking problems from acceleration issues, further narrowing the number of complaints that could be linked to a faulty pedal or an electronic malfunction. Cases involving brief periods of acceleration were also considered separately from those that involved prolonged, high-speed incidents, many of which involved accidents.

Sean Kane, whose consulting firm, Safety Research and Strategies, counts plaintiffs’ lawyers among its clients, contends that the agency did not push Toyota for more data, and too quickly accepted the company’s explanations about floor-mat problems.

“The agency has not been very forceful with Toyota at all,” Mr. Kane said. The agency “always took the low-hanging fruit for an explanation, which is the floor mat.”

'It's not a typical case'

The discussions between federal officials and Toyota intensified in December, when the acting chief of the agency, Ronald Medford, flew to Japan to hold meetings with senior company executives, according to a government official with knowledge of the trip who was not authorized to speak publicly.

On Jan. 19, two days before the recall for the sudden-acceleration problem, Mr. Inaba of Toyota met in Washington with Mr. Medford and the new head of the agency, David Strickland.

The mounting number of complaints and accidents has led the agency to be more outspoken than it usually is during continuing investigations.

Last week, the transportation secretary, Ray LaHood, said in an interview with a Chicago radio station that Toyota had halted production of recalled vehicles “because we asked them to.”


Indeed, Toyota had to be told by regulators to shut down production and suspend sales of the cars and trucks in the latest recall until it had the parts necessary to fix them. It was yet another example of a slow response from a company long known for its meticulous approach to building cars and servicing customers.

Mr. Michels, the Toyota spokesman, said the company never before had to halt production or stop selling millions of vehicles involved in a recall.

“It’s not a typical case,” he said. “Usually in a ‘stop sale’ it’s a very small quantity.”

In its attempts to play down the problem, Toyota may have raised more doubts among consumers.

“It thinks it can control this crisis, and in the process has thrown its own credibility out the window,” said Mr. Kane, the safety consultant whose firm has documented thousands of reports of unintended acceleration.

Fear about driving the vehicles

Some owners of recalled Toyotas are now saying they are afraid to drive them. “I live only a half mile from the office and I drive there,” said Elaine Byrnes, a Camry owner in Los Angeles. “If I had to go farther, I wouldn’t consider it.”

And the scrutiny of Toyotas will not end with its new plan to replace the pedals. Accidents are receiving swift attention from federal regulators.


On Dec. 26, a 2008 Toyota Avalon — one of the cars under recall — crashed just outside of Dallas. A police officer in Southlake, Tex., Roderick Page, said in an interview that “for undetermined reasons, the vehicle left the main roadway, and went through a metal pipe fence, striking a tree and causing the vehicle to flip and land upside down in a pond.”

All four people in the car died. “There was no evidence that they attempted to hit the brake or slow down,” he said. “Honestly, my reaction is, ‘Wow.’ ”

Two weeks later, an investigator from the National Highway Traffic Safety Administration visited Southlake to inspect the car, accompanied by a Toyota engineer. Mr. Page said one factor they immediately ruled out was the floor mats, which were in the trunk.

This article, “Toyota’s Slow Awakening to a Deadly Problem,” first appeared in The New York Times. Matt Richtel contributed reporting from San Francisco, Clifford Krauss from Houston and Matthew L. Wald from Washington.

Copyright © 2010 The New York Times

[doug]

updated 2:20 p.m. ET Feb. 2, 2010
Autos
Transport secretary calls Toyota ‘safety deaf’
LaHood says federal officials had to ‘wake them up’ over gas pedal issues
The Associated Press
WASHINGTON - Transportation Secretary Ray LaHood said Toyota was slow to deal with safety problems with its gas pedals, asserting in an interview Tuesday that it took government pressure to force the company to recall millions of its most popular vehicles.

LaHood, in an interview with The Associated Press, defended his department's handling of the Toyota investigation and said the Japanese automaker was "a little safety deaf" during its probe of the problem. The company was so resistant, LaHood said, that it took a trip from federal safety officials to Japan to "wake them up" to the seriousness of the pedal problems.

"They should have taken it seriously from the very beginning when we first started discussing it with them," LaHood told AP. "Maybe they were a little safety deaf in their North American office until we went to Japan."

"If it had not been for the work of (the National Highway Traffic Safety Administration) pushing Toyota to make the recall, traveling to Japan, meeting with the top officials of Toyota in Japan and telling them that their folks in the United States seem to be a little safety deaf when it came to us talking to them, I don't know if the recall would be taking place," LaHood said.

LaHood's remarks were his most pointed since Toyota recalled 2.3 million vehicles in the United States due to concerns over gas pedals that can stick when drivers step on the gas. The Jan. 21 recall followed a separate action in October to recall millions more over problems with pedals catching on floor mats.

"It took a trip from (NHTSA deputy administrator) Ron Medford to Japan to wake them up to the idea that this is a serious issue, it's a serious safety issue," LaHood said. "We're not going to sit by and let these kinds of crashes occur without them taking very, very quick action."

Toyota apologized to its customers Monday and announced a fix that will involve inserting a piece of steel about the size of a postage into the gas pedal assembly to address potential excess friction. In rare cases, Toyota says, the friction can cause the pedal to become stuck in the depressed position.

Jim Lentz, president of Toyota Motor Sales USA, told reporters Monday that the recalls were an embarrassment for the company but it was acting quickly to address the problem. "We have to redouble our efforts to make sure this doesn't happen again," he said.

Asked for reaction to LaHood's comments to the AP, Toyota said in a statement Tuesday: "Nothing is more important to us than the safety and reliability of the vehicles our customers drive. Secretary LaHood said to us that the soonest possible action would be in the best interests of our customers, and we took his advice very seriously and instituted a recall."


"We are very grateful for his advice and we feel that we have been given a chance to regain our customers' trust," Toyota said.

Beginning in 2003, the government conducted several investigations into reports of unwanted acceleration involving Toyota vehicles but failed to find any evidence that the vehicles were defective. When the government probed reports of floor mats in Lexus vehicles jamming gas pedals, Toyota said there was "no possibility of pedal interference" with the floor mats if they were placed properly and secured.

But a government survey of Lexus owners found dozens of reports of sudden acceleration and evidence that in some crashes owners had pressed hard on the brakes but failed to stop the vehicles. The investigation led Toyota to recall an accessory all-weather floor mat for 55,000 Lexus vehicles in September 2007.

The problems grew last August when a California Highway Patrol officer and three family members were killed in a high-speed crash aboard a 2009 Lexus ES350. The Lexus hit speeds exceeding 120 mph, struck a sport utility vehicle, launched off an embankment, rolled several times and burst into flames as a family member called 911.

In October, Toyota recalled more than 4 million vehicles to replace floor mats that were suspected of causing accelerators to get stuck, leading to crashes. The recall has since grown to more than 5 million vehicles.

Following the latest recall and Toyota's decision to stop selling those vehicles, LaHood told reporters Monday that Toyota had "done the right thing" and urged car owners to contact their dealers immediately and remain cautious until repairs can be made.

But he defended the department's review of the Toyota case in the interview, arguing that NHTSA had conducted several investigations of the vehicles and pushed Toyota to recall the vehicles. "I'm not going to take a back seat to anybody when it comes to safety," LaHood said.

Underscoring his concern, LaHood said the Toyota recalls "may be the most serious safety issue that we have faced here at DOT" during his tenure. "This is a big deal, this is a big safety issue," LaHood said.

The role of the government and the company in the recalls is drawing scrutiny in Congress. The House Oversight and Government Reform Committee has launched an investigation into the recalls and scheduled a Feb. 10 hearing examining the risk to the public. LaHood and other DOT officials are expected to testify. Committee officials also have asked Yoshi Inaba, chairman and CEO of Toyota Motor North America, to testify and are expected to seek testimony from a consumer or consumer group. Separately, the investigative panel of the House Energy and Commerce Committee is planning a Feb. 25 hearing on the Toyota cases.

Copyright 2010 The Associated Press. All rights reserved.

[doug]

updated 9:06 a.m. ET Feb. 3, 2010
Recall may push Toyota to tipping point
GM, Ford, others move in to grab share from wounded Japanese giant
By Paul A. Eisenstein
What a difference a year makes. As the otherwise dismal 2009 got under way for the auto industry, it looked like Toyota, the new global sales leader, was in the driver's seat. But 12 months later, the hobbled Japanese giant is looking a lot more like the walking wounded.

Few could have anticipated the problems that have befallen the Japanese maker, which ended 2009 with a record recall that was expanded in January, leaving millions of customers waiting for word on when they can get potentially sticky gas pedals repaired.

With Toyota’s reputation for building safe, reliable vehicles in tatters, competitors have taken aim, hoping to gain lost ground. Among the makers who see an opportunity to take market share from their Asian nemesis are General Motors, Ford and South Korea’s Hyundai.

“This is embarrassing for us having this kind of recall situation, but it doesn’t mean we’ve lost our edge on quality,” Toyota Motor Sales USA President Jim Lentz told reporters this week. He acknowledged, however, that the reputation for quality is the “cornerstone” of the brand’s enviable presence in the U.S. market.

Toyota on Tuesday reported a 16 percent drop in U.S. sales last month, posting its worst result in 12 years, after taking the highly unusual step of halting sales on eight models with the defective part. GM and Ford were among the brands that posted double-digit gains in January.

Like every manufacturer, Toyota has had to deal with recalls over the years, but never have they been so large nor with such potentially life-threatening problems. In October, the maker announced it would recall 3.8 million vehicles due to “carpet entrapment,” the possibility that loose floor mats could jam their accelerator pedals, as appeared to happen in an accident that killed a California Highway Patrol officer and three members of his family.


At the time, Bob Carter, Toyota division general manager, insisted that complaints about other potential causes of so-called “unintended acceleration” were “unwarranted speculation.” But the company now admits that even then it was beginning to receive credible reports that gas pedals could stick on their own. That finally led to the latest recall announced Jan. 19 and then expanded even further. Initially Toyota said the recall would affect another 2.3 million vehicles, but that number has grown to 4.5 million in recent days, while the first recall’s tally has jumped to 5.3 million.

Complicating matters, Toyota has taken the highly unusual step of advising dealers not to sell eight of its more popular models, which together account for about 4,000 units of volume daily. And it has idled five North American plants for at least a week until replacement parts can be shipped to the factories.

GM was first to fire a salvo at its archrival, which displaced the humbled American maker as global sales king at the end of 2008.


GM spokesman Tom Wilkinson said the company's dealers "were getting inundated” with calls from Toyota owners looking to trade in. So the Detroit maker sweetened the pot with an offer for any potential customer trading in a Toyota. GM buyers can get either $1,000 in cash, $1,000 off lease payments or a zero-interest, 60-month loan. The program, which began last Wednesday, runs through the end of February.

It has been more than a bit controversial with some industry executives considering the sales grab a cheap shot. Toyota executives, they note, supported General Motors last year when the big American maker needed a massive government bailout to survive.

But some inside GM feel that were it not for Toyota, GM wouldn’t have been in trouble in the first place. And besides, said spokesman Wilkinson, “Carmakers are always looking for a competitive advantage.”

GM’s strategy was quickly copied by a number of rivals, including Ford and Hyundai.

In years past loyal Toyota customers might simply have waited until the hold on sales of the eight affected products was lifted, but that seems less likely now, due to the severity of the problems and uncertainty over a fix. And there are some customers who simply cannot wait, perhaps because they have vehicles coming off lease that need be replaced immediately, or because they are driving a clunker that won’t make it to the end of winter.

And if quality is a key driver, the fact is that the gap among manufacturers has been narrowing significantly in recent years, said Dave Sargent, director of automotive research at California-based J.D. Power and Associates. Indeed, more than a few recent studies have found Toyota slipping behind. GM’s Buick brand recently topped the Toyota's luxury Lexus line in J.D. Power’s long-term reliability study.

Meanwhile, the highly influential Consumer Reports has praised Ford for delivering “world class quality” on a par with the best imports, while GM’s newest models, such as the Chevrolet Malibu sedan and Equinox crossover also were singled out.


That’s something General Motors has been actively telling customers in a recent series of TV commercials that skip the serene driving shots in favor of direct comparisons, often against Toyota.

This is "absolutely" an opportunity for GM and Ford, said Power’s Sargent. “They stand to gain significantly from this. Their images are clearly improving, and for each and every Toyota model affected by the recall, they have a direct competitor available.”

For his part, Toyota’s Lentz declined to forecast the potential impact of the recall on the company’s sales and market share, but neither did he deny that the company could be at a tipping point.

“It all depends on how well we take care of the customers” with the two recalls, Lentz said. “If we do well, the impact will be minimal, so the heat is on us to do this well.”

© 2010 msnbc.com