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."

  • Alan Well, it will take 30 years to fix Nissan up after the Renault Alliance reduced Nissan to a paltry mess.I think Nissan will eventually improve.
  • Alan This will be overpriced for what it offers.I think the "Western" auto manufacturers rip off the consumer with the Thai and Chinese made vehicles.A Chinese made Model 3 in Australia is over $70k AUD(for 1995 $45k USD) which is far more expensive than a similar Chinesium EV of equal or better quality and loaded with goodies.Chinese pickups are $20k to $30k cheaper than Thai built pickups from Ford and the Japanese brands. Who's ripping who off?
  • Alan Years ago Jack Baruth held a "competition" for a piece from the B&B on the oddest pickup story (or something like that). I think 5 people were awarded the prizes.I never received mine, something about being in Australia. If TTAC is global how do you offer prizes to those overseas or are we omitted on the sly from competing?In the end I lost significant respect for Baruth.
  • Alan My view is there are good vehicles from most manufacturers that are worth looking at second hand.I can tell you I don't recommend anything from the Chrysler/Jeep/Fiat/etc gene pool. Toyotas are overly expensive second hand for what they offer, but they seem to be reliable enough.I have a friend who swears by secondhand Subarus and so far he seems to not have had too many issue.As Lou stated many utes, pickups and real SUVs (4x4) seem quite good.
  • 28-Cars-Later So is there some kind of undiagnosed disease where every rando thinks their POS is actually valuable?83K miles Ok.new valve cover gasket.Eh, it happens with age. spark plugsOkay, we probably had to be kewl and put in aftermarket iridium plugs, because EVO.new catalytic converterUh, yeah that's bad at 80Kish. Auto tranny failing. From the ad: the SST fails in one of the following ways:Clutch slip has turned into; multiple codes being thrown, shifting a gear or 2 in manual mode (2-3 or 2-4), and limp mode.Codes include: P2733 P2809 P183D P1871Ok that's really bad. So between this and the cat it suggests to me someone jacked up the car real good hooning it, because EVO, and since its not a Toyota it doesn't respond well to hard abuse over time.$20,000, what? Pesos? Zimbabwe Dollars?Try $2,000 USD pal. You're fracked dude, park it in da hood and leave the keys in it.BONUS: Comment in the ad: GLWS but I highly doubt you get any action on this car what so ever at that price with the SST on its way out. That trans can be $10k + to repair.
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