Report: Class Action Lawuits Could Cost Toyota $3 Billion
March 10, 2010 – The legal troubles for the Toyota Motor Corporation continue to worsen as dozens of class action lawsuits are being filed accusing the automaker’s recent recall efforts of deflating the value of Toyota vehicles in the used auto market.
At least 89 class action lawsuits have been filed regarding the recently falling values of used Toyota vehicles totaling a potential $3 billion in liabilities for the world’s largest automaker, the Associated Press reported today. The 89 lawsuits identified do not include existing lawsuits for legal liability in the dozens of accidents and deaths attributed to faulty Toyota vehicles in recent years.
Attorneys representing disgruntled Toyota owners are accusing company officials of deliberately ignoring reports of safety and mechanical issues with various models. The plaintiffs contend delays in correcting known problems have accelerated the loss of value for recalled Toyota models, according to the litigants. Attorneys cited recent devaluations of popular Toyota Corolla and Sequoia models, which Kelley Blue Book officials recently depreciated by up to $750 in light of the recall efforts, the Associated Press reported.
A group of federal judges on March 25 are scheduled to convene in San Diego to decide whether or not to consolidate the dozens of existing lawsuits into a single class action and try the case in only one jurisdiction.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 52 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first vehicle recall issued last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States. The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
The automaker also recalled another 437,000 hybrid vehicles due to braking problems, including its popular Prius hybrid model, the Lexus HS259h hybrid sedan and the Sai hybrid compact sedan. Company officials say a simple software fix will eliminate potential braking problems when the vehicles are driven over uneven terrain and take about 40 minutes to complete at local Toyota dealerships. Owners have complained of vehicle braking systems not operating properly when driving over speed bumps and other uneven surfaces.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
Despite Recall Woes, Toyota Earns Top Safety Pick Awards
March 5, 2010 – Facing a multitude of state and federal investigations, lawsuits and bad press over a recent global recall of more than 9 million vehicles for various safety concerns, the Toyota Motor Corporation had two models earn prestigious “Top Safety Pick” awards from the Insurance Institute for Highway Safety.
The Toyota Corolla and Scion xB each earned top safety awards after scoring the highest possible safety ratings during impact testing on front, side and rear impacts as well as vehicle rollovers. Vehicles also must be equipped with electronic stability-control systems to earn top safety marks.
The Toyota models are the automaker’s first to earn top safety marks after the Insurance Institute for Highway Safety officials this year implemented rollover testing to help determine its top safety picks. A vehicle’s roof must be able to withstand the equivalent of four times its weight without collapsing to earn the highest safety marks from the Insurance Institute for Highway Safety. Federal safety regulations require a vehicle’s roof be able to withstand only 1.5 times its weight. The roof of the xB withstood 6.8 times its weight while the roof of the Corolla withstood 5.1 times its weight, according to the Insurance Institute for Highway Safety.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 34 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first recall issued last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States. The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
The automaker also recalled another 437,000 hybrid vehicles due to braking problems, including its popular Prius hybrid model, the Lexus HS259h hybrid sedan and the Sai hybrid compact sedan. Company officials say a simple software fix will eliminate potential braking problems when the vehicles are driven over uneven terrain and take about 40 minutes to complete at local Toyota dealerships. Owners have complained of vehicle braking systems not operating properly when driving over speed bumps and other uneven surfaces.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
GMAC Insurance Ownership Transfer Completed
March 3, 2010 – The full acquisition of the former U.S. personal lines insurance wing of General Motors, GMAC Insurance, by the American Capital Acquisition for an undisclosed amount has been completed, officials for GMAC Insurance and American Capital Acquisition announced today.
The sale initially was announced in October but awaited regulatory and other approvals. GMAC insurance operations will remain headquartered in Winston-Salem, North Carolina, and will retain the “GMAC Insurance” brand name for personal insurance lines while company officials come up with a new brand name. The company will be headed by its new chief executive, Larry Pentis, who recently was hired from Massachusetts-based property and casualty insurer the Commerce Group.
“Larry is a seasoned and successful insurance professional with over twenty-seven years of experience,” said Michael Karfunkel, chairman of American Capital Acquisition. “Larry has a collaborative leadership style emphasizing open and honest communication.”
Officials for insurance holding company AmTrust Financial Services last year joined with American Capital Acquisition to purchase GMAC Insurance and allocated an initial $42.5 million toward the purchase price. AmTrust was to pay up to $22.5 million more during the first quarter of 2010 to complete the acquisition of GMAC Insurance.
GMAC Insurance had received about $12.5 billion in U.S. taxpayer funds as part of the federal government’s efforts to stabilize the nation’s economy after the stock market collapse of 2008. One of the nation’s top 20 auto insurers, GMAC Insurance previously was the primary provider of personal lines of auto insurance for General Motors and Chrysler customers.
GMAC Insurance has a network of more than 10,000 independent agents and brokers doing business in 47 states. GMAC Insurance reported more than $1.5 billion in direct premiums written in 2008. GMAC Insurance sells auto insurance, motorcycle insurance, boat and personal watercraft insurance and some commercial lines.
Although GMAC Insurance now is owned by American Capital Acquisitions and AmTrust, GMAC still owns its international personal property and casualty insurance lines as well as its products-and-services group for insurance professionals. GMAC officials are selling some subsidiaries after posting losses for seven consecutive quarters and accepting federal bailout assistance. GMAC will continue using the GMAC Insurance brand name until deciding on another name to market its products to consumers, according to company officials.
AmTrust Financial Services is based in New York City and an international insurance holding company focused mostly on property and casualty markets. American Capital Acquisition is a United States-based, international capital-acquisition and investment firm providing financing and capital for corporate buyouts and acquisitions. American Capital has several regional offices in the United States and overseas.
New York AG Announces Vehicle Repair Agreement with Toyota
Feb. 24, 2010 – More than 500,000 Toyota vehicles in New York will have repairs facilitated through an agreement reached between company and state officials, New York Attorney General Andrew Cuomo announced today.
Toyota officials have agreed to pick up and return recalled vehicles owned by New York residents as well as alternative transportation, such as a rental car or reimbursement for taxi expenses, for the time Toyota owners are without their vehicles. New York Toyota and Lexus dealers will pay the costs for expediting repairs on recalled vehicles and providing alternative transportation in New York, the cost of which the Toyota Motor Corporation ultimately must repay to the dealerships.
The agreement comes as Toyota Motor Corporation officials this week are grilled by a Congressional panel investigating recent massive vehicle recall and the Japanese automaker faces dozens of class action lawsuits over its response to repeated complaints of sudden acceleration, braking and steering problems in various Toyota models.
Officials for the National Highway Traffic and Safety Administration said they have received complaints of at least 34 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first recall issue last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials earlier recalled worldwide – including about 2.3 million vehicles in the United States.
At least 44 class-action lawsuits have been filed in various state and federal courts at an estimated cost of about $600 per recalled vehicle and $3.6 billion combined, according to Northeastern University law professor Tim Howard. Howard is helping to coordinate lawsuits against Toyota, and a legal hearing is scheduled March 25 in San Diego to determine which of the courts will preside over a single national class-action lawsuit.
Among parties suing Toyota are owners of recalled vehicles and several dealerships and auto brokers wanting compensation for losses incurred when Toyota officials halted all sales of recalled models. Federal officials investigating Toyota’s response to consumer complaints over the past decade also could fine the firm.
Toyota Facing $3.6 Billion Class-Action Lawsuit
Feb. 17, 2010 – Delays in addressing potential safety issues with various vehicles during the past decade has made the Toyota Motor Corporation the target of a spate of class-action lawsuits seeking up to $3.6 billion in damages.
At least 44 class-action lawsuits have been filed in various state and federal courts at an estimated cost of about $600 per recalled vehicle and $3.6 billion combined, according to Northeastern University law professor Tim Howard. Howard is helping to coordinate lawsuits against Toyota, and a legal hearing is scheduled March 25 in San Diego to determine which of the courts will preside over a single national class-action lawsuit.
Among parties suing Toyota are owners of recalled vehicles and several dealerships and auto brokers wanting compensation for losses incurred when Toyota officials halted all sales of recalled models. Federal officials investigating Toyota’s response to consumer complaints over the past decade also could fine the firm.
Officials for the National Highway Traffic and Safety Administration earlier this week said they have received complaints of at least 34 deaths caused by sudden acceleration in Toyota vehicles since 2000, according to an Associated Press news report. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first recall issue last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials earlier recalled worldwide – including about 2.3 million vehicles in the United States.
Federal officials recently opened an investigation into the high number of complaints they have received regarding braking issues with the Toyota Prius, which was not among the initial eight models the auto manufacturer recalled worldwide last month for problems with sticking gas pedals and sudden acceleration.
Federal officials said combining all the complaints they have received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
The automaker last week recalled another 437,000 hybrid vehicles due to braking problems, including its popular Prius hybrid model, the Lexus HS259h hybrid sedan and the Sai hybrid compact sedan. Company officials say a simple software fix will eliminate potential braking problems when the vehicles are driven over uneven terrain and take about 40 minutes to complete at local Toyota dealerships. Owners have complained of vehicle braking systems not operating properly when driving over speed bumps and other uneven surfaces.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the world’s top automaker.
Insurance Goes Space Age as States Regulate ‘SpacePort’ Coverage
Feb. 16, 2010 – As Sir Richard Branson’s latest venture, Virgin Galactic, prepares to become the world’s first commercial provider of space travel, several states have enacted or are working on enabling legislation regulating insurance coverage for space travel.
The New Mexico Senate recently voted 37-0 to approve Senate Bill 9, which regulates liability insurance coverage for space travel from the state’s $200 million Spaceport America complex located about 45 north of Las Cruces, Mew Mexico.
Entitled “The Space Flight Informed Consent Act,” the measure protects the complex against liability suits and outlines legal requirements for informing passengers of the extreme risks and inherent dangers of space travel. Passengers must sign waiver forms acknowledging they understand the risks being taken and holding the state and spaceport harmless in order to proceed into space. Companies providing space travel could be held liable for death or injuries if a judge determines the company was grossly negligent.
The Space Flight Informed Consent Act is modeled after similar laws enacted in Virginia and Florida and must be approved by the New Mexico House of Representatives. State officials say the measure is necessary to protect taxpayers against potential legal liability issues arising from commercial operations.
“It does not protect the component manufacturers,” Sen. Mary Kay Papen (D-Las Cruces) told the Associated Press. “A plaintiff can still sue. There’s still a duty to exercise care. It’s just a way that we’re looking at protecting the [state’s] investment in the spaceport.”
New Mexico lawmakers say the measure was necessary to give the Land of Enchantment an additional competitive advantage over other states vying for future commercial space travel ventures.
Officials at Virgin Galactic plan to begin taking up to six passengers per flight into space next year out of the New Mexico spaceport facility. Passengers would pay a $200,000 fee for a 2.5-hour flight about 360,000 feet above Earth and more than 50 miles into space, including about 5 minutes of zero gravity. The spacecraft would return to Earth by “feathering” its wings and slowly
Rather than using conventional launching techniques, the company has built two technologically advanced aircraft to carry the smaller spacecrafts to higher altitudes before launching them. The two spacecraft are 28 feet and 60 feet long, respectively, with each described as an “air-launched glider with a rocket motor” and additional systems for space travel, according to the Virgin Galactic Web site.
Virgin Galactic is owned by Branson and famed aerospace engineer Burt Rutan. Rutan’s brother, Dick, completed the first non-stop global flight without refueling while flying one of his brother’s experimental aircraft in 1986.
Federal Officials Say at least 34 Deaths Caused by Toyota Recall Issues
Feb. 15, 2010 – Federal officials today posted information indicating at least 34 people in the United States allegedly have died because of problems with Toyota vehicles.
Officials for the National Highway Traffic and Safety Administration today said they have received complaints of at least 34 deaths caused by sudden acceleration in Toyota vehicles since 2000, according to an Associated Press news report. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first recall issue last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States.
Federal officials recently opened an investigation into the high number of complaints they have received regarding braking issues with the Toyota Prius, which was not among the initial eight models the auto manufacturer recalled worldwide last month for problems with sticking gas pedals and sudden acceleration.
Federal officials said combining all the complaints they have received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
The automaker last week recalled another 437,000 hybrid vehicles due to braking problems, including its popular Prius hybrid model, the Lexus HS259h hybrid sedan and the Sai hybrid compact sedan. Company officials say a simple software fix will eliminate potential braking problems when the vehicles are driven over uneven terrain and take about 40 minutes to complete at local Toyota dealerships. Owners have complained of vehicle braking systems not operating properly when driving over speed bumps and other uneven surfaces.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
Honda Recalls Another 438,000 Vehicles for Airbag Problems
Feb. 11, 2010 – The Toyota Motor Corporation isn’t the only Japanese automaker dealing with a massive vehicle recall. Officials for the Honda Motor Company today announced an additional recall of 438,000 vehicles due to concerns over potentially faulty airbags.
Vehicles covered by the latest recall by Honda are the 2001 and 2001 Honda Accord, Civic, CR-V and Odyssey models and the 2002 Honda Acura TL. The 438,000 vehicles recalled are in addition to some 646,000 Honda Fit models recalled two weeks ago.
The recalls have been issued to fix faulty airbag inflators, which sometimes apply too much pressure when inflating airbags during an accident and result in the inflating mechanism to break apart and sending potentially lethal shrapnel flying into the passenger compartment. The problem has been experienced in at least a dozen vehicles, resulting in one known fatality, according to Honda officials.
Honda officials previously issued vehicle recalls in November 2008 and July 2009 for the same problem in various models and recently expanded the recall to more than a million vehicles to better ensure safety.
“We have decided to recall all inflator assemblies that were not confirmed by 100 percent automatic inspection during production because we cannot be absolutely certain they will all perform as designed, even though recent testing of units from this production process performed correctly,” Honda officials said in a joint news release.
While Honda’s latest recall efforts include more than a million vehicles, the total number recalled are only about a tenth the amount rival Japanese automaker Toyota has recalled in recent months. Toyota has recalled nearly 10 million vehicles worldwide, and company officials are scrambling to maintain the Toyota’s reputation for building quality vehicles.
Toyota’s most recent recall of some 437,000 hybrid vehicles with potentially faulty brakes comes in addition to the about 9 million vehicles across eight model lines Toyota officials recently have recalled already worldwide – including about 2.3 million vehicles in the United States.
Officials for the U.S. National Highway Traffic Highway and Safety Administration recently opened an investigation into the high number of complaints federal officials have received regarding braking issues with the Toyota Prius hybrid, which was not among the eight models and 9 million vehicles worldwide the auto manufacturer previously recalled due to problems with the gas pedal sticking and causing sudden acceleration.
Federal officials said combining all the complaints received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
Toyota Recalls 437,000 Hybrid Vehicles to Fix Brakes
Feb. 9, 2010 – As expected, officials for the Toyota Motor Corporation today announced a recall of another 437,000 hybrid vehicles due to braking problems, including its popular Prius hybrid model.
The latest recall by Toyota is for its Lexus HS259h hybrid sedan, the Sai hybrid compact sedan and the Prius hybrid. Company officials say a simple software fix will eliminate potential braking problems when the vehicles are driven over uneven terrain and take about 40 minutes to complete at local Toyota dealerships. Owners have complained of vehicle braking systems not operating properly when driving over speed bumps and other uneven surfaces.
Toyota has recalled nearly 10 million vehicles worldwide, and company officials are scrambling to maintain the Toyota’s reputation for building quality vehicles.
“Let me assure everyone that we will redouble our commitment to quality as the lifeline of our company,” Toyota chief executive Akio Toyoda said during today’s news conference announcing the additional recall.
The recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials recently have recalled already worldwide – including about 2.3 million vehicles in the United States.
Officials for the U.S. National Highway Traffic Highway and Safety Administration recently opened an investigation into the high number of complaints federal officials have received regarding braking issues with the Toyota Prius, which was not among the eight models and 9 million vehicles worldwide the auto manufacturer recently recalled due to problems with the gas pedal sticking and causing sudden acceleration.
Federal officials said combining all the complaints received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
Toyota earlier recalled several popular vehicles models for problems with the gas pedal, claiming a floor mat could cause the accelerator to stick. But the company expanded the recall when the initial fix failed to fully address problems with its popular Camry sedan and other models.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
Report: Toyota to Recall 300,000 Prius Hybrids
Feb. 8, 2010 – The recent manufacturing safety woes of the world’s largest automobile manufacturer, the Toyota Motor Corporation, have caught up the world’s most popular hybrid vehicle, the Toyota Prius, according to newspaper reports in Japan.
Toyota officials reportedly are recalling some 300,000 Prius hybrid cars manufactured since May 2009 due to widespread complaints of braking problems, Japan’s Kyodo News Agency reported today. The recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States.
Officials for the U.S. National Highway Traffic Highway and Safety Administration recently opened an investigation into the high number of complaints received regarding braking issues with the Toyota Prius, which is not among the eight models and 9 million vehicles worldwide the auto manufacturer recently recalled due to problems with the gas pedal sticking and causing sudden acceleration.
Federal officials said combining all the complaints received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
Officials for the Japanese government already have ordered Toyota officials to look into the matter, which reportedly can be fixed with a change in software programming. Toyota officials say no accidents have been caused by the braking problem in the Prius, but U.S. officials said it is responsible for causing four non-injury accidents in the United States.
Toyota officials earlier recalled several popular vehicles models for problems with the gas pedal, claiming a floor mat could cause the accelerator to stick. But the company expanded the recall when the initial fix failed to fully address problems with its popular Camry sedan and other models.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe. Toyota also has halted manufacturing new models until the matter is resolved.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top sellers.
Toyota President Apologizes, Announces 6-Point Plan
Feb. 5, 2010 – The president of the Toyota Motor Corporation today apologized for the auto manufacturer’s recent vehicular problems and promised to implement stronger quality control standards during the manufacturing process after recalling 2.3 million vehicles in the United States and 9 million worldwide.
“I deeply regret the inconvenience and concern caused to our customers and others by our recent recalls of multiple vehicle models across multiple regions,” Toyota President Akio Toyoda said during a new conference in Nagoya, Japan. “Under the banner, ‘Let’s build better cars,’ we will go back to the basics of ‘customer first.’ All our employees around the world, all of our dealers and all of our suppliers will unify in their utmost efforts to regain the trust of our customers as soon as possible.”
Having recently displaced General Motors as the world’s number one auto-manufacturer, Toyota officials have come under fire in recent weeks for taking their time in correcting known problems on several popular vehicle lines.
Problems with sticking gas pedals forced the Japanese automaker to recall all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe. Auto industry analysts estimate Toyota will spend about $250 million to correct just the 2.3 million vehicles recalled in the United States.
Another recall could be issued for the popular Toyota Prius hybrid car, which has been plagued with braking problems.
Officials for the U.S. National Highway Traffic Highway and Safety Administration recently opened an investigation into the high number of complaints received regarding braking issues with the Toyota Prius. Federal officials said say combining all the complaints they have received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
In light of the apparent manufacturing problems afflicting the automaker, Toyoda today announced a 6-point plan to improve the manufacturing process and ensure the safety of Toyota owners and their families. Toyoda said he will lead a special company task force focused on improving manufacturing quality through greater oversight, improving communication with customers to identify problems sooner and establishing an “Automotive Center of Quality Excellence” to enhance management oversight of quality-control issues.
Toyota Prius Might Join List of Recalled Vehicles
Feb. 4, 2010 – Already dealing with a massive recall of 2.3 million vehicles in the United States and 9 million worldwide, problems with the popular Toyota Prius hybrid car might force yet another round of recalls for the Japanese auto maker.
Officials for the U.S. National Highway Traffic Highway and Safety Administration recently opened an investigation into the high number of complaints received regarding braking issues with the Toyota Prius, which is not among the eight models and 9 million vehicles worldwide the auto manufacturer recently recalled due to problems with the gas pedal sticking and causing sudden acceleration.
Federal officials said say combining all the complaints received on all eight recalled 2010 Toyota models wouldn’t amount to half of the 171 complaints already received on the 2010 Toyota Prius. Some 124 of the complaints about the Prius focus on similar braking issues. By comparison, Toyota recalled its Corolla model, which only had 33 complaints thus far in 2010.
Because Toyota officials apparently haven’t taken seriously consumer safety concerns with the popular Prius hybrid, federal officials announced the investigation into the matter this week. Officials for the Japanese government already have ordered Toyota officials to look into the matter, which reportedly can be fixed with a change in software programming. Toyota officials say no accidents have been caused by the braking problem in the Prius, but U.S. officials said it is responsible for causing four non-injury accidents.
Toyota officials earlier recalled several popular vehicles models for problems with the gas pedal, claiming a floor mat could cause the accelerator to stick. But the company expanded the recall when the initial fix failed to fully address problems with its popular Camry sedan and other models.
Toyota officials said the floor mats in some vehicles have caused a small number of accelerators on various models to become stuck while driving, but the problem has occurred only rarely and never suddenly. Toyota’s U.S.-based parts supplier has redesigned the accelerator pedal to remedy the problem, and Toyota is sending out consumer product recalls in batches of 10,000 to address the matter.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe. Toyota also has halted manufacturing new models until the matter is resolved.
Auto industry analysts estimate Toyota will spend about $250 million to correct just the 2.3 million vehicles recalled in the United States. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top sellers.
U.S. Transportation Secretary Blasts Toyota, Retracts Statement
Feb. 3, 2010 – U.S. Transportation Secretary Ray LaHood this morning told a U.S. House Appropriations subcommittee that U.S. owners of the about 2.3 million Toyota vehicles recalled should just take the vehicles to their local dealers and force them to fix them.
But when his words gained traction in national media, LaHood backed off his earlier testimony before members of the House Appropriations Subcommittee on Transportation, which is looking into how Toyota Motor Corporation officials have handled the massive recall regarding sticking gas pedals in particular vehicles.
“What I said in there was obviously a misstatement,” LaHood afterward told Capitol Hill reporters. “If you own one of these cars, take it to the dealer. If you are in doubt, take it to the dealer and have them fix it.”
LaHood while addressing the House panel earlier suggested owners of recalled vehicles: “Stop driving it. Take it to a Toyota dealer because they believe they have a fix for it.” LaHood has said Toyota officials have been slow in handling the matter and have been “a little safety deaf” in responding to vehicle safety concerns. He suggested there would be no current vehicle recall, which has totaled more than 9 million vehicles worldwide, had it not been for the efforts of the U.S. National Highway Traffic Safety Administration.
Federal officials are considering levying a fine on Toyota for delaying the recall on a matter that first came to the attention of company officials in 2007.
Toyota officials earlier recalled several popular models, claiming a floor mat could cause the accelerator to stick. But the company expanded the recall when the initial fix failed to fully address problems with its popular Camry sedan and other models.
“Nothing is more important to Toyota than doing the right thing for our customers – and restoring their confidence in the safety of our vehicles. We deeply regret the concern that our recalls are causing for our loyal customers, and we are making an all-out effort to develop and implement effective remedies as quickly as we can,” Toyota officials said in a company statement. “We’ve identified the cause of the problem and are focusing all of our energy and resources on developing and thoroughly testing remedies.”
Toyota officials said the floor mats in some vehicles have caused a small number of accelerators on various models to become stuck while driving, but the problem has occurred only rarely and never suddenly. Toyota’s U.S.-based parts supplier has redesigned the accelerator pedal to remedy the problem, and Toyota is sending out consumer product recalls in batches of 10,000 to address the matter.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe. Toyota also has halted manufacturing new models until the matter is resolved.
Auto industry analysts estimate Toyota will spend about $250 million to correct just the 2.3 million vehicles recalled in the United States. Toyota is the world’s largest manufacturer of automobiles and recently displaced recently bankrupted General Motors as the auto industry’s top seller.
Recent Studies Show Direct Insurance Sales Becoming More Common
Feb. 2, 2010 – More and more auto insurance companies are turning to direct sales via the Internet and telephone as studies show consumers are becoming more satisfied with their online shopping experiences.
Several auto insurance industry studies conducted in recent years show yearly increases in the percentage of people shopping for and purchasing auto insurance and other insurance products online. A 2008 study by J.D. Powers and Associates indicates some 44 percent of people buying insurance from a new insurer bought it directly through a company Web site or call center instead of consulting a local insurance agent. Some 41 percent of insurance consumers purchased insurance coverage directly in 2007, and insurance transactions conducted via the Internet account for 21 percent of all new customer sales, according the J.D. Powers and Associates.
“The erosion of the advantage that agency insurers have traditionally held in the interaction factor reflects both the improvements achieved by direct channels as well as the changing needs and expectations of consumers today,” said Jeremy Bowler, senior director of insurance practices at J.D. Power and Associates. “Insurance customers are increasingly seeking the ability to research and change coverage options at their convenience and beyond typical agency hours. While direct insurers have updated their Web sites and phone-based customer service systems accordingly, a number of agency insurers have some catching up to do.”
Supporting Bowler’s contention is a 2007 “Consumer Focus” Insurance Study by communications consulting firm Vertis Communications showing 40 percent of adults surveyed said they were willing to purchase auto insurance directly without consulting an insurance agent or broker. The 40 percent is 11 percentage points higher than the 29 percent of adults in 2003 indicating they would buy insurance without consulting an agent or broker.
A 2009 study by Internet marketing research company “comScore” indicates consumers requested more than 32 million auto insurance quotes via the Internet and bought about 2.4 million auto insurance policies in 2008. A similar study conducted last year by the Insurance Research Council shows about 52 percent of consumers visited an insurance company Web site when shopping for new auto insurance, and 18 percent bought their auto insurance coverage online instead of through traditional insurance agents and insurance brokers.
Facilitating the increase in direct insurance sales is a recent increase in customer satisfaction with insurance company Web sites and telephone call centers, according to the 2009 National Auto Insurance Study by J.D. Power and Associates. The study queried nearly 23,000 people between March and April 2009 and indicates Americans are “considerably” more satisfied with their insurance companies’ respective Web site and call centers than in 2008.
The study shows traditional auto insurance agents and auto insurance brokers perform better than direct insurers when interacting with customers, but the advantage enjoyed by agents and brokers is only a slight one.
Congressional Probe Planned for Toyota Recall
Jan. 29, 2010 – Hot on the heels of the Toyota Motor Corporation’s massive, international recall of eight popular models and 9 million vehicles, a U.S. Congressional panel plans to probe the matter.
Congressman Henry Waxman (D-California) chairs the House Energy and Commerce Committee and has requested documents relating to recent vehicle recalls from Toyota and federal safety regulators. Waxman yesterday announced plans to hold a formal Congressional hearing into the matter next month.
“Like many consumers, I am concerned by the seriousness and scope of Toyota’s recent recall announcements,” he said in a statement.
Toyota officials earlier recalled several popular models, claiming a floor mat could cause the accelerator to stick. But the company expanded the recall when the initial fix failed to fully address problems with its popular Camry sedan and other models.
“Nothing is more important to Toyota than doing the right thing for our customers – and restoring their confidence in the safety of our vehicles. We deeply regret the concern that our recalls are causing for our loyal customers, and we are making an all-out effort to develop and implement effective remedies as quickly as we can,” Toyota officials said in a company statement. “We’ve identified the cause of the problem and are focusing all of our energy and resources on developing and thoroughly testing remedies.”
Toyota officials said the floor mats in some vehicles have caused a small number of accelerators on various models to become stuck while driving, but the problem has occurred only rarely and never suddenly. Toyota’s U.S.-based parts supplier has redesigned the accelerator pedal to remedy the problem, and Toyota is sending out consumer product recalls in batches of 10,000 to address the matter.
The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe. Toyota also has halted manufacturing new models until the matter is resolved.
Toyota is the world’s largest manufacturer of automobiles and recently displaced recently bankrupted General Motors as the auto industry’s top seller. But in light of Toyota’s current production problems, officials at Ford and General Motors officials are offering special buyer incentives to people trading in Toyotas for new Ford and GM vehicles.
Auto industry analysts estimate Toyota will spend about $250 million to correct just the 2.3 million vehicles recalled in the United States, according to Reuters.