You may remember Toyota from earlier this year. They’re the car company that was the number one car manufacturer and seller in the world for almost a decade until it was found that 8 to 10 million of their cars had deadly sudden acceleration problems and that they’d (woops) actually known about and (double woops) tried to hide it.
The nearly 10 million cars Toyota has recalled worldwide in the last years is almost as many vehicles as were sold by all manufacturers in the U.S. last year. The recalls involved floor mats that could jam accelerators, sticking gas pedals, brakes and other components.
This led to the highest fine in history levied by the National Highway Traffic Safety Administration (NHTSA) of a whopping $16.4 million…okay, not that whopping and probably less than the car company made last week, but still, it’s a start.
What Toyota learned from all this is that avoiding an issue probably isn’t the best policy. They also found out that recalling almost every Toyota in the world at the same time may not have been the smoothest move either. That’s why they are now doing things in stages as the problems arise.
Consumers are finding out that Toyotas may not actually be most reliable cars on the road as Toyota might tell us on the commercials. This was, once again, proven today when Toyota announced the recall of 412,000 of its mid range and luxury Avalon and Lexus Models.
Toyota Recall
Their recall is for a steering problem in 373,000 Avalon sedans built for the 2000 to 2004 model years and 39,000 Lexus LX 470 vehicles from 2003 to 2007. The company said that if the vehicle experienced a severe impact to the front wheels, such as striking a pothole, the steering shaft could disengage over time.
The Japanese car manufacturer said it plans to replace the steering column bracket on the vehicles, a procedure that takes about 2 hours to complete. Toyota said it will notify owners by mail beginning in late August to take their vehicles to a dealer to have the work done at no charge.
“It is just another day, another Toyota recall,” said Rebecca Lindland, an analyst at IHS Automotive.
Steve St. Angelo, Toyota’s chief quality officer for North America, said the automaker “is continuing to work diligently to address safety issues wherever they arise and to strengthen our global quality assurance operations so that Toyota owners can be confident in the safety of their vehicles.”
Nothing better than a little more spokesperson lip-service to get us through the day. Nonetheless, the massive recalls have taken their toll on Toyota’s sales in the U.S.
In the first half of 2010, Toyota’s sales (not including those of the Lexus and Scion brands) actually rose 8.6% compared to an overall gain of 16.7% for the entire industry. Its overall US market share has slumped to 13.2%, compared with 14.1% during the same period in 2009 before the recall.
“The diehard Toyota people won’t care about the recalls. Where Toyota is struggling is with the conquest, or new buyers. These people are asking why they should buy a new Toyota,” Lindland said. “The recalls have a negative impact on long-term growth. It is a real challenge for Toyota.”
Certainly no one in the US is shedding a tear for Toyota and their sales and though it is obvious that some people are conscious of their safety, other Americans gladly forgo the reports of massive mechanical short-comings in the face of Zero-Down, Zero-Interest sales incentives. And of course the commercials that say things like, “Most reliable on the road,” and “Best resale value in its class.” Both of these claims, not to go as far to say that they are lies, are not particularly true either. But of course, the lack of truth in advertising is another thing Americans got over long ago.
Toyota Lawsuits
Toyota faces hundreds of lawsuits arising from its problems with sudden acceleration and sticking gas pedals and it is the target of intense scrutiny by federal safety regulators and Congress. And that has caused the automaker to take a cautious approach when problems crop up in its vehicles, which leads to large and expensive recalls.
Today’s recalls came less than two weeks after the company was subpoenaed by a federal grand jury to produce documents related to steering problems in its vehicles.
These recalls also come around two weeks after Toyota told federal regulators that another steering problem that could affect 749,685 Corolla and Matrix models isn’t a safety defect, thus no recall is required.
In February, the NHTSA opened an investigation into 2009 and 2010 Corolla and Matrix models after receiving 168 reports that the electric power steering in the vehicles was prone to drifting or locking up, especially at highway speeds.
The lawsuits and reports of very serious and potentially fatal design flaws in Toyota vehicles seem to pour in weekly. The American federal regulators and the NHTSA of course will not go as far as to ban the sale of new Toyotas, but there needs to be a serious review of the manufacturing of these vehicles to see if corners are deliberately being cut at the detriment of American drivers.
If you or a loved one has been effected by the steering problems on the Toyota Avalon or Lexus 470 resulting in a car accident or serious personal injury then it is very important that you find a lawyer with experience in product liability lawsuits that can represent you and assure that you get the compensation you deserve. Call Phillips Webster for a free consultation and to find out your legal options.
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- Manufacturer Defects Lawsuits
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