Does Toyota Really Spend One Million Dollars Per Hour On Safety?

Edward Niedermeyer
by Edward Niedermeyer

Like GM’s infamous “payback” commercial, this Toyota ad walks right up to the point of a big lie, allowing the viewer to believe something while they’re actually being told something subtly different. Toyota never says “we spend a million dollars every hour on safety-related technology,” but they sure make you want to believe it. In reality, the “million dollars every hour” represents Toyota’s global R&D budget, some undisclosed portion of which is spent on safety-related technology. Toyota’s explanation of this intentionally confusing claim, after the jump.

Toyota gave the following response to the NY Times‘ request for clarification

Sona Iliffe-Moon, a Toyota spokeswoman, declined to estimate the proportion devoted specifically to safety.

“The $1 million figure represents Toyota’s R&D spending on new technology and safety, much of it allocated to quality and safety features,” she said. “A specific amount would be nearly impossible to estimate as nearly every component of our vehicles is designed with safety in mind, including steering, brakes, seats, ergonomics, weight, even where the radio is placed.

“Passive and active safety components are integrated throughout our vehicles,” she said, “most of which are invisible to the driver.”

Maybe instead of touting its R&D spend (and implying that little of it goes to non-safety related projects like, I don’t know, hybrid technology), Toyota should start figuring out how it can improve response time when things do go wrong. The latest example of a delayed defect response at Toyota involves the latest engine recall. According to BusinessWeek, the valve spring defect in question was first reported as early as 2007.


Edward Niedermeyer
Edward Niedermeyer

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  • Domestic Hearse Domestic Hearse on Jul 06, 2010

    365 days a year. Times 24 hours per day. Equals 8,760 hours per year. Times 1 million dollars.... I call b***hit, Iliffe-Moon-san. But brilliant, since most Americans no longer have basic math skills nor can they think critically.

    • L'avventura L'avventura on Jul 06, 2010

      Which is $8.76B Which is where Toyota's R&D budget is, its especially bloated in terms of today's currency rate since Toyota R&D budget in calculated in yen, and the dollar and euro are weak. Even back in 2005 Toyota spent 770 billion yen in R&D, which is 8.75B in today's exchange rate. Its even larger now. Also, this $1 million per hour claim is fairly old: http://www.h2carblog.com/?p=548 Now, R&D and safety may be a questionable connection, but I'm sure Toyota is going to spend billions in settlements and lawyers fees this year, not to mention recall costs and everything in between. With all those calculated it should easily be over $8.46B, but I'm sure Toyota doesn't want to brag about those costs...

  • TomH TomH on Jul 06, 2010

    Meh, "investing" at ~$1,350/car isn't a lot of money when you take into account the array of safety technologies in modern vehicles. Once you consider all of the things that are reportable in NHTSA's world (and their global counterparts) it's pretty easy to get there. The car biz deals in mega-numbers that are literally and figuratively "hard to imagine."

  • TheEndlessEnigma These cars were bought and hooned. This is a bomb waiting to go off in an owner's driveway.
  • Kwik_Shift_Pro4X Thankfully I don't have to deal with GDI issues in my Frontier. These cleaners should do well for me if I win.
  • Theflyersfan Serious answer time...Honda used to stand for excellence in auto engineering. Their first main claim to fame was the CVCC (we don't need a catalytic converter!) engine and it sent from there. Their suspensions, their VTEC engines, slick manual transmissions, even a stowing minivan seat, all theirs. But I think they've been coasting a bit lately. Yes, the Civic Type-R has a powerful small engine, but the Honda of old would have found a way to get more revs out of it and make it feel like an i-VTEC engine of old instead of any old turbo engine that can be found in a multitude of performance small cars. Their 1.5L turbo-4...well...have they ever figured out the oil dilution problems? Very un-Honda-like. Paint issues that still linger. Cheaper feeling interior trim. All things that fly in the face of what Honda once was. The only thing that they seem to have kept have been the sales staff that treat you with utter contempt for daring to walk into their inner sanctum and wanting a deal on something that isn't a bare-bones CR-V. So Honda, beat the rest of your Japanese and Korean rivals, and plug-in hybridize everything. If you want a relatively (in an engineering way) easy way to get ahead of the curve, raise the CAFE score, and have a major point to advertise, and be able to sell to those who can't plug in easily, sell them on something that will get, for example, 35% better mileage, plug in when you get a chance, and drives like a Honda. Bring back some of the engineering skills that Honda once stood for. And then start introducing a portfolio of EVs once people are more comfortable with the idea of plugging in. People seeing that they can easily use an EV for their daily errands with the gas engine never starting will eventually sell them on a future EV because that range anxiety will be lessened. The all EV leap is still a bridge too far, especially as recent sales numbers have shown. Baby steps. That's how you win people over.
  • Theflyersfan If this saves (or delays) an expensive carbon brushing off of the valves down the road, I'll take a case. I understand that can be a very expensive bit of scheduled maintenance.
  • Zipper69 A Mini should have 2 doors and 4 cylinders and tires the size of dinner plates.All else is puffery.
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