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."

  • Dartman EBFlex will soon be able to buy his preferred brand!
  • Mebgardner I owned 4 different Z cars beginning with a 1970 model. I could already row'em before buying the first one. They were light, fast, well powered, RWD, good suspenders, and I loved working on them myself when needed. Affordable and great styling, too. On the flip side, parts were expensive and mostly only available in a dealers parts dept. I could live with those same attributes today, but those days are gone long gone. Safety Regulations and Import Regulations, while good things, will not allow for these car attributes at the price point I bought them at.I think I will go shop a GT-R.
  • Lou_BC Honda plans on investing 15 billion CAD. It appears that the Ontario government and Federal government will provide tax breaks and infrastructure upgrades to the tune of 5 billion CAD. This will cover all manufacturing including a battery plant. Honda feels they'll save 20% on production costs having it all localized and in house.As @ Analoggrotto pointed out, another brilliant TTAC press release.
  • 28-Cars-Later "Its cautious approach, which, along with Toyota’s, was criticized for being too slow, is now proving prescient"A little off topic, but where are these critics today and why aren't they being shamed? Why are their lunkheaded comments being memory holed? 'Who controls the past controls the future. Who controls the present controls the past.' -Orwell, 1984
  • Tane94 A CVT is not the kiss of death but Nissan erred in putting CVTs in vehicles that should have had conventional automatics. Glad to see the Murano is FINALLY being redesigned. Nostalgia is great but please drop the Z car -- its ultra-low sales volume does not merit continued production. Redirect the $$$ into small and midsize CUVs/SUVs.
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