Yesterday, Transportation Secretary Ray LaHood had a reassuring message for Toyota owners: “My advice is, if anybody owns one of these vehicles, stop driving it.” He said it in front of cameras at a House of Representatives hearing, cameras rolling (or whatever cameras do these days.)

“LaHood’s explosive comment,” writes Reuters, “sent shares of battered Toyota Motor Corp plunging.” (Read More…)

Complaints about allegedly faulty Prius brakes are growing by the minute. This morning’s Nikkei reports that in addition to the 14 complaints received by  Japan’s Transport Ministry, dealers in Japan are handling 77. Today, Toyota conceded that the brakes can get confused on icy roads. (Read More…)

When Martin Winterkorn took over as CEO of Volkswagen, he said that Volkswagen wants to be better than Toyota, not just in units, but in profitability, innovation, customer satisfaction, everything. Toyota was the declared enemy of VW. Toyota was bigger, made more money, had happier customers. When Winterkorn declared the lofty goal, it was shrugged off. Incoming CEOs routinely make grand announcements which nobody really takes seriously. The year was 2007, Volkswagen had just become #3 in the world. Toyota was #2, leading VW by more than 2m units sold worldwide. Towering above all was GM, with 9.3m units sold, 800,000 more than Toyota.

A little after the quote above, first rumors about a “Strategy 2018” surfaced. The plan wasn’t public. I knew someone at VW who had seen (but wasn’t given) the strategy, and he confirmed that it said that Volkswagen wanted to overwhelm Toyota – in 10 years. Insiders (this reporter included) rolled their eyes and denounced the plan as the usual hubris of an incoming CEO, a suit who’d be busy collecting his pension by the time 2018 rolled around. I was wrong. (Read More…)

“We’re not finished with Toyota,” said Transportation Secretary Ray LaHood in an e-mailed statement to Reuters. Bad choice of words? Doesn’t that sound a tad vengeful? If a 900 lbs gorilla barks “I’m not through with you” at me, then I’m very afraid. Toyota should be too. (Read More…)

And the hits, they keep on coming. Now, brakes of the Prius flake out.

Japan’s transport ministry has received 14 complaints about problems with brakes on Toyota’s latest. The ministry has asked Toyota to investigate the complaints, says the Nikkei [sub.] “Those are purely reported cases, so we still need to investigate to find out where problems really exist,” said a ministry spokesman, who said that the number of complaint over such a short time-span “more than usual.” There is more in the U.S.A. (Read More…)

Complete numbers for U.S. January 2010 light vehicle sales are pretty much in (subject to change.) They look mildly promising. Overall, Automotive News [sub] records a gain of 6 percent over January 2009 so far. Here are the sales reported: (Read More…)

Germany is suffering from Abwrackprämien-withdrawal. Message to dealers: Not this month, we have a headache. January sales are down 4.3 percent compared to January 2009. Only 181,189 new cars found their way on Deutschland’s roads. 4.3 percent may not sound earth shattering. But we are comparing with an exceptionally crummy January 2009, when sales were so awful that Berlin quickly launched their German cash-for-clunkers Abwrackprämien program. This time around, Germans bought even less. It’s been the most miserable January in some 20 years. (Read More…)

Opel is running out of time and out of money. In the second quarter of 2010, the company will be out of cash again, figures the German Handelsblatt. As indicated yesterday, discussions with the unions are going nowhere. Says the Handelsblatt:”Management is preparing for a breakdown of the talks.” Reilly and his crew are trying to find ways how to get Opel going without wage concessions by the unions. But how? (Read More…)

Today, Toyota gave a press conference in Nagoya, the first at Toyota’s home base to address the recall. Akio Toyoda was AWOL as usual. Instead, Toyota’s Vice President Shinichi Sasaki, who is also in charge of quality assurance, did the dubious honors. He did what he had to do: He apologized profusely.

“I’d like to offer an apology for causing anxiety among our customers around the world,” Sasaki said, according to the Nikkei [sub]

Sasaki said Toyota aggravated the situation by disclosing the problem before firming up countermeasures. By doing so, “we ended up creating mistrust in the market,” he said. “We prioritized customer safety, focusing on releasing solid information first.”

In a rather un-Japanese move, he passed a tiny bit of the blame: (Read More…)

IP squad, to the front! SinoCast, relying on information from a “top executive of Geely Automobile Holdings Ltd.” says that Geely will buy 100 percent of Volvo, “including the ownership of existing technologies in the fields of safety and environmental protection, as well as technologies of new car models.”

Before, it was reported that Ford could hold back some sensitive technology, namely new environmental and safety gear. Nothing doing, says Geely. Also, Geely seeks to get their hands on advanced hybrid and electric car technologies jointly developed by Volvo and Vattenfall. (Read More…)

China’s Tengzhong is a little-known machinery maker in southwest China’s Sichuan province. They have  been buying GM’s Hummer for what, more than half a year now? Today they said that they and GM have agreed not to rush it and to push back the deadline for the closing  from January 31 to the end of February. Delaying it was a prudent move, because there still is no approval  from Chinese regulators. If they don’t have approval now, then they probably won’t have it by end of February either. Due to the Chinese Lunar New Year festivities, most of China will be closed for most of February, and the really important regulators will not be back from Spring vacation before March. (Read More…)

TORRANCE, Calif., February 1, 2010 – Toyota Motor Sales (TMS) U.S.A., Inc., today announced it will begin fixing accelerator pedals in recalled Toyota Division vehicles this week.  Toyota’s engineers have developed and rigorously tested a solution that involves reinforcing the pedal assembly in a manner that eliminates the excess friction that has caused the pedals to stick in rare instances.  In addition, Toyota has developed an effective solution for vehicles in production. (Read More…)

Japanese car sales are coming back with a vengeance, reports The Nikkei [sub] Sales of new vehicles (exluding minivehicles, or Kei cars) rose 36.8 percent to 238,362 units. That according to data by the Japan Automobile Dealers Association. January marks the sixth consecutive month of growth, and the increase is the largest ever recorded for the month of January. Minivehicles edged up 0.7 percent to 128,297 units in January, recording their first rise in 15 months, as per data by the Japan Mini Vehicles Association. (Read More…)

In case you are reading TTAC before watching the “Today Show,” turn it on. According to the Wall Street Journal, “Jim Lentz, the executive in charge of Toyota’s U.S. sales arm, is scheduled to appear on NBC’s “Today Show” Monday morning, a Toyota spokesman confirmed. Mr. Lentz is expected to lay out a timetable for shipping repair parts to dealers, as well as for resuming sales of the eight models whose sales were suspended last week and for restarting production and shipment of new vehicles that are free of the gas-pedal problems, according to people briefed on the plans.”

And here is today’s media schedule according to the Nikkei [sub]: (Read More…)

Yesterday, the Wall Street Journal wrote: “Hell, in modern imagination, is not a place of fiery lakes and acrid fumes. It’s a maze of deposition rooms you can’t escape, where nothing is what it seems. That’s where Toyota has landed.“

Welcome to hell. (Read More…)