Even if Toyota hadn’t antagonized the ruling party, its congressional hearings would have been a posture-fest anyway. Congress can’t do much about Toyota’s recent behavior besides name, shame and tell the NHTSA to do a better job next time. Sure, the lights and cameras of congressional theater might get Akio Toyoda to sweat a little, but with an ever-increasing number of civil suits pending, criminal investigations are the real cause for concern. A New York federal grand jury has subpoenaed “certain documents related to unintended acceleration of Toyota vehicles and the braking system of the Prius,” reports the LA Times. Both Toyota and its US sales division were also targeted by an SEC subpoena, requesting similar documents, including details of the company’s disclosure policy. If either of these criminal cases move forward, those pending civil suits could grow a much more powerful set of legs.
I’ve been bearish on this Toyota scandal from the beginning, but it’s hard to imagine anything more damaging to Toyota’s civil cases than the documents where they bragged about saving a couple hundred million dollars in the last decade by working the regulatory referees.
But it’s early in the week.
The totality of Toyota’s GROWING troubles just has to be a union created and sustained conspiracy!!! Right!? Are you bullish on that?
No, and I’m shorting tin foil futures, too. ;-)
b’head,
Recommend you go long on litigation lawyers. ;-)
Probably not a bad play, but Toyota’s losses from civil cases are going to be a rounding error compared to what they’re going to have to pay in buyer incentives and longer warranty coverage.
That’s how I see it as well. As far as unintended acceleration goes, in terms of magnitude, there’s no there, there. 34 deaths in 10 years, even if they’re all directly pinned to Toyoda-san’s kimono, will only cost him a few geishas. It’s the sales price that he’s gotta worry about, and if any “quality” veneer gets permanently peeled off, he’ll be saying sayanora to a whole lotta cash.
I really think that the UAW and there friends in Government are behind most of this shi” about Toyota! You can well imagine that if Toyota and others where Union whether UAW or other, this would never have occurred imho!
Do you realize that fluoridation is the most monstrously conceived and dangerous Communist plot we have ever had to face?
I’m overcome by the desire for the House chamber to be converted into a massive Kitchen Stadium, where the finest culinary artists from Japan and America duke it out! The heat will be on!
Like the man said: “We’re not done with them yet.”
The worse congress can do is get sound bites that repeat on the local news, which could hurt Toyota’s image. The criminal complaints I hadn’t heard of. If Toyota has broken some laws criminally, that would be some really bad press for the auto manufacture and very detrimental when it concerns the civil cases.
Tort lawyers are ready for a feeding frenzy, and $400 / hour “expert” witnesses are in for a robust few years.
While this is an excellent way for the government create more “Toyota Kills People” hype, it’ll still be a tough case to prove. Essentially the law in question was passed after the Exploder / Firestone fiasco. It states that you can’t lie to the NHTSA. Which could be very tough to prove beyond a reasonable doubt.
Things may get worse for Toyota. But other automakers who see a way to pick up market share should be wary.
Every manufacturer has a percentage of potential Darwin Award Winners as customers. Some – cough-GM-cough – more than others. These ‘winners’ teamed with trial lawyers won’t stop at furrin’ manufacturers if they think they have good lawsuit-lottery chances from a poorly handled recall. And while Toyota may have deep pockets, Uncle Taxpayer is the Mariana Trench.
Edward, the SEC doesn’t do criminal investigations. While they can make criminal referals, usually to the USAO,, the agency’s own powers are limited to civil sanctions.
From 90 a share to 75 in 4 weeks. Shave another 10 bucks off the share price and I’m in for a sawbuck. It’s going back up to 100 eventually.
Meanwhile Government Motors is being handed their opportunity. Ditto the Italian connection.