Toyota's Top Executive Denies Knowledge of Acceleration Problems Prior to Recalls

Strategic Insights -

Toyota's President Akio Toyoda testified before a House committee on Wednesday, stating that he did not know about the company's unintended acceleration problem until late last year. This contradicts the timeline of the company's recalls, which began in 2007 and continued with additional recalls in 2009 and 2010. The company's top U.S. official, President and CEO Yoshimi Inaba, also testified that he was unclear about the details of unintended acceleration until recently.

Toyoda, who became president of the company in June 2009, claimed that he was not aware of the acceleration problem despite being in charge of quality and product management. He stated that he only learned about the issue from a meeting with National Highway Traffic Safety Administration (NHTSA) representatives in December, which he claimed he did not attend in person. The meeting was handled by a subordinate, and Toyoda claimed that he did not know the content of the discussion.

The committee was unimpressed by Toyoda's testimony, with Representative Gerald Connolly questioning the "extraordinary compartmentalization" of the company's quality assurance division. The company has issued numerous recalls in the past, including one for 55,000 vehicles in 2007 and another for 5.6 million vehicles in 2009 and 2010. The recalls were issued due to concerns over improper or ill-fitting floor mats, which could jam the gas pedals open and cause vehicles to accelerate unintentionally.

The hearing also featured testimony from victims of the unintended acceleration problem, including Fe Niosco Lastrella, whose son and grandchildren died in a crash of a loaner Toyota vehicle in San Diego. Kevin Haggerty, a New Jersey resident, also testified about his own experiences with sudden acceleration in his 2007 Toyota Avalon.

The committee questioned NHTSA's relationship with the entire auto industry, with some members suggesting that the agency has a "cozy" relationship with the industry. Safety advocate Joan Claybrook testified that former NHTSA employees are now working for the auto manufacturers, and that this is a problem that extends beyond Toyota.

**Key Takeaways:**

  • Toyota's President Akio Toyoda testified that he did not know about the company's unintended acceleration problem until late last year.
  • The company's top U.S. official, President and CEO Yoshimi Inaba, also testified that he was unclear about the details of unintended acceleration until recently.
  • Toyoda claimed that he only learned about the issue from a meeting with NHTSA representatives in December, which he claimed he did not attend in person.
  • The committee questioned the "extraordinary compartmentalization" of the company's quality assurance division.
  • The company has issued numerous recalls in the past, including one for 55,000 vehicles in 2007 and another for 5.6 million vehicles in 2009 and 2010.
  • The recalls were issued due to concerns over improper or ill-fitting floor mats, which could jam the gas pedals open and cause vehicles to accelerate unintentionally.
  • Victims of the unintended acceleration problem testified before the committee, including Fe Niosco Lastrella and Kevin Haggerty.

**Statistics:**

  • 39 deaths attributed to sudden acceleration in Toyotas.
  • 55,000 vehicles recalled by Toyota in 2007 due to concerns over improper or ill-fitting floor mats.
  • 5.6 million vehicles recalled by Toyota in 2009 and 2010 due to concerns over improper or ill-fitting floor mats.
  • $100 million saved by Toyota by persuading NHTSA to settle for the limited floor mat recall instead of an agency investigation and perhaps a broader recall.

**Sources:**

  • [1] Washington Post
  • [2] New York Times
  • [3] Toyota's official website
  • [4] National Highway Traffic Safety Administration (NHTSA) official website
  • [5] House Committee on Oversight and Government Reform official website