House Launches Toyota Investigation, Hearings Scheduled

Edward Niedermeyer
by Edward Niedermeyer

Staff from the House Energy and Commerce Committee met with representatives from Toyota yesterday, reports Automotive News [sub], as Congress wades into the Toyota recall debacle. According to a letter from the Energy and Commerce Committee to NHTSA administrator David Strickland and Toyota North America Boss Yoshimi Inaba [letters available in PDF format here], the discussions with Toyota were characterized as “helpful,” but that “it left important questions unanswered, including when Toyota learned about this serious safety defect and what actions the company took to investigate and resolve the hazard.” Hearings have been scheduled for February 25, and the Committee’s letter to Inaba requests disclosure of all internal communication related to to the production shutdown, among other company documents.

Meanwhile, on the regulatory front, NHTSA spokesfolks tell BusinessWeek that “NHTSA’s been constantly monitoring the situation and investigating the issue of Toyotas and sudden acceleration, even back to 2007 when they had the other recall on floor mats.” Secretary of Transportation Ray LaHood adds that he has “no criticism of Toyota on this. They followed the law, and they did what they’re supposed to do.” “I don’t know of another time a car manufacturer has stepped up the way Toyota has,” LaHood reportedly told Bloomberg. “NHTSA did exactly what it should’ve done, meet with Toyota and discuss this.”

The disconnect between the response from regulators and the response from congress speaks volumes about the impact of this recall. Though it hardly indicates anything like criminal behavior on Toyota’s fault, the shock of the reigning quality champ taking one on the chin has been a catalyst for the downtrodden domestic automakers (and their congressional investors/allies) to get as much mileage out of the debacle as possible. After all, there’s no downside to hauling Toyota’s bosses in front of a committee: the congresscritters get populist “looking after the consumer” cred, while simultaneously boosting the relative value of the government’s GM investment. Let the spectacle begin!

Edward Niedermeyer
Edward Niedermeyer

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  • Criminalenterprise Criminalenterprise on Jan 30, 2010

    I don't mind a little tuneup of the NHTSA from time to time. It helps keep legislators from getting bored and chasing hobbies that are not within their purview. thirty-three: auto safety is regulated by government, the financial industry as a whole was bailed out with combined Fed/Treasury intervention of somewhere around 1/5 of our entire GDP last year and MLB is unique among sports as it enjoys exemption from federal antitrust law. There are over 500 individuals in Congress and thousands of staffers. Be careful when asking, "don't they have something better to be doing?" Such a question may not carry as much rhetorical punch as you'd intend.

  • Telegraph Road Telegraph Road on Jan 30, 2010

    Having watched the Ford/Firestone hearings 10 years ago from a TV set in the Glass House, I remember them too well. The hearings didn't resolve anything but only served as a grandstanding platform for committee members. Many resources within NHTSA, Ford, and Firestone had to be diverted to preparing testimony. Since those resources could have been better used on the separate internal investigations within NHTSA, Ford, and Firestone, it was clear the congressional hearings only obstructed a quick resolution of the problem.

  • Akear Does anyone care how the world's sixth largest carmaker conducts business. Just a quarter century ago GM was the world's top carmaker. [list=1][*]Toyota Group: Sold 10.8 million vehicles, with a growth rate of 4.6%.[/*][*]Volkswagen Group: Achieved 8.8 million sales, growing sharply in America (+16.6%) and Europe (+20.3%).[/*][*]Hyundai-Kia: Reported 7.1 million sales, with surges in America (+7.9%) and Asia (+6.3%).[/*][*]Renault Nissan Alliance: Accumulated 6.9 million sales, balancing struggles in Asia and Africa with growth in the Americas and Europe.[/*][*]Stellantis: Maintained the fifth position with 6.5 million sales, despite substantial losses in Asia.[/*][*]General Motors, Honda Motor, and Ford followed closely with 6.2 million, 4.1 million, and 3.9 million sales, respectively.[/*][/list=1]
  • THX1136 A Mr. J. Sangburg, professional manicurist, rust repairer and 3 times survivor is hoping to get in on the bottom level of this magnificent property. He has designs to open a tea shop and used auto parts store in the facility as soon as there is affordable space available. He has stated, for the record, "You ain't seen anything yet and you probably won't." Always one for understatement, Mr. Sangburg hasn't been forthcoming with any more information at this time. You can follow the any further developments @GotItFiguredOut.net.
  • TheEndlessEnigma And yet government continues to grow....
  • TheEndlessEnigma Not only do I not care about the move, I do not care about GM....gm...or whatever it calls itself.
  • Redapple2 As stated above, gm now is not the GM of old. They say it themselves without realizing it. New logo: GM > gm. As much as I dislike my benefactor (gm spent ~ $200,000 on my BS and MS) I try to be fair, a smart business makes timely decisions based on the reality of the current (and future estimates) situation. The move is a good one.
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