State Farm has been a thorn in Toyota’s side since congress geared up to investigate its recall problems. First, the insurance firm disclosed that it had warned the NHTSA of the prevalence of unintended acceleration (UA) in Toyota models back in 2007, then this past weekend, it clarified that it had actually warned the NHTSA of problems back in 2004. All this has added to the perception that Toyota somehow bought the NHTSA’s cooperation in concealing its UA problem, a perception that is accelerating tensions leading up to Akio Toyoda’s capitol hill testimony. Ironically, Toyota took measures to fight its image as a lobbyist-happy Washington manipulator by… hiring more lobbyists. Unfortunately for Toyota, the Legal Times blog reports that one of its recently-hired K-street reinforcements (Quinn Gillespie) had something of a conflict of interest that QG spokesfolks describe as:

another, long-standing client of the firm was in a position adverse to Toyota in connection with certain matters relating to the company’s recall of some of its vehicle lines

A quick look at QG’s client list reveals only one likely candidate: State Farm Insurance. As a result of the conflict, Quinn Gillespie has terminated its deal with Toyota. According to regulatory filings, Toyota paid QG $30,000 for six weeks of work, during which time it lobbied on “issues related to the vehicle recall, as well as proposed reform of the financial regulatory system.”

TrueDelta has once again updated the results of its Car Reliability Survey. Based on over 15,000 responses for the first time, the new results cover owner experiences through December 31, 2009. Elsewhere, results continue to be based on an April 2009 survey. Thanks to these prompt quarterly updates, TrueDelta can provide reliability stats on new or redesigned models sooner, and then closely track cars as they age.

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Scott writes:

Why is it that the radiator fan turns on when I switch the heater knob to “Defrost” and not in any other mode? I have a 2001 Subaru Outback that does it even with the engine off. Turn the key to “On”, set the vents to blow on the windshield, turn the fan speed on any speed except off, and the radiator fan will turn on (and I’m not confusing it with the heater fan. Open the hood and it’s one of the radiator fans spinning). My 1999 Toyota Camry doesn’t do it with the engine off, but does when it’s on.

When I sit with it idling and have the vents pointed at the windshield, you can hear the radiator fan kicking in intermittently as needed. In both cars, with the selector in any other position, the fans don’t run nearly as often. Both cars are the base four-cylinder models with the typical three-knob HVAC layout (both lack automatic climate control). Thanks in advance.

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Redflex Traffic Systems of Australia succeeded last week in blocking efforts to end red light camera ticketing in Loma Linda, California. While several members of the city council expressed a desire to uproot the automated ticketing machines, Redflex insisted that could not be done unless the city paid $534,558 in early termination penalties. The council declined to take any action at its February meeting.
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We at TTAC pride ourselves as “equal snarkiness journalists”. We don’t care if you’re GM, Toyota, Honda, Hyundai, Fiat or anyone else. You try to pull the wool over our eyes, we’ll strike back with the truth you’re trying to hide. Likewise, not only are we journalists, we are also humans and as such we have our own brands and marques which we are partial to. Anyone who’s ever read my posts and articles (and not just to comment on my regional grammar and spelling) will know that I like, very much, Toyota and Jaguar cars. But that matters not a jot today. I am a blogger and an impartial one at that, so when I say this next article pains to me write, trust me, it PAINS me!

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Ah, political spectacle. When Detroit’s CEOs took the stand at congressional hearings over a year ago, the main browbeating bullet point wasn’t the decades of mismanagement and greed, but the fact that Messrs. Wagoner, Mullaly and Nardelli had taken separate corporate jets to the festivities. The lesson: convenient focal points for anger always trump the complexity of a substantive dressing-down. And as congress gears up to grill Toyota’s CEO, the Japanese automaker has given congress just the thing to sharpen its collective knife against: an honest opinion. One document [via Politico PDF here] briefing Toyota USA boss Yoshi Inaba for the hearings, reveals that Toyota believe the current administration is “activist” and that “not industry-friendly.” True or false, this document sets up an adversarial relationship between Toyota and the majority party going into the hearings. Which would be bad enough if Toyota hadn’t also handed over evidence, already leaked by the Oversight committee, indicating that it balances recall costs against risks and lobbies the government in its own interest. On its own, this evidence might be merely embarrassing, but having slighted the Democrats, news that Toyota treats recalls like a business has become prima facie evidence in the (increasingly political) case against the Japanese automaker.

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You don’t want to be traveling in or to Europe these days. In Germany, Lufthansa’s pilots went on strike this morning, grounding 3200 planes. “The largest strike in the history of German aviation” (Die Welt) paralyzed German air traffic, and caused jams on the ground as travelers switched from planes to trains and automobiles.

Meanwhile next door in France, a nation is running out of gas. Workers at the six refineries owned by the country’s biggest oil group, Total, have been striking for more than a month. The work stoppage threatens to spread “to the two French oil refineries owned by US group Exxon Mobil, where strikes are planned for Tuesday,” reports the BBC. Read More >

After decades of “up-positioning” and premium-branding, the sudden success of cheapskate models such as the Dacia Logan has not gone unnoticed at Europe’s largest automaker Volkswagen. Czech media is abuzz with reports of a new entry model, blatantly codenamed “A Entry,” which may be part of the Skoda line-up.

Reuters cites Czech media reports that the new model could be priced around $13,650, putting it somewhere between Skoda’s smaller (Polo-based) Fabia and the larger Octavia, which sits on a PQ35 (think Golf, Jetta) platform. Priced and positioned like that, it won’t be a Logan-killer. The Dacia goes for under $10,000 MSRP.

In the meantime, rumors that VW aims a lot lower won’t die in Wolfsburg. Read More >

Nissan’s alleged premium brand Infiniti is going to the dark side…well, the less refined side. The Auto Channel reports that Infiniti are going to put a newly developed diesel power train (produced in grand alliance with Renault) into their vehicles for the European market. They are aiming to put this oil burner into the EX and FX CUV’s, and later into the M saloon. (Which is not a new watering hole. It’s  what the Americans would call a sedan. Which is a town in France. Or in Australia. Or in Indiana, Kansas, Minnesota and West Virginia. You figure it out. ED)

Infiniti has been in Europe for less than a year. Jim Wright, Vice President of Infiniti Europe, compensates lack of experience with lack of shame, and with a PR-writer prone to flowery prose (always a dead give-away for wannabe-luxury:) “The sales success enjoyed by Infiniti in Europe against a backdrop of financial uncertainty proves the cars’ appeal to a discerning audience. We have established Infiniti as the luxury performance brand thanks in part to the remarkable multi-award winning VQ petrol engine that powers most of the models in the range.” (And he didn’t refer to a kitchen stove. ED) Read More >

The Colorado House’s passage of HB-1049 [PDF here], a bill requiring restitution for dealers culled during the Chrysler and GM bankruptcies, has drawn a $60,000 “no” campaign from General Motors. The Denver Post reports that GM’s ad campaign, which features lines like “we must keep driving forward to repay our government loans,” and “don’t let special interests stick taxpayers in reverse,” has riled up local lawmakers more than ever, drawing such timeless put-downs as: “they must be spending tax dollars on Botox to say that with a straight face.” The bill would require OEMs compensate culled dealers for signs, parts, dealer upgrades and more, as well as offer them the right of first refusal for any new area dealerships.

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Chrysler To Recall Entire Range, Will Run “Let’s Recall America” Ad Campaign

After the violently successful “Let’s Refuel America” ad campaign, during which time Chrysler pitched itself as the $2.99/gallon antidote to what seemed like expensive gas, Chrysler plans to follow it up with a new “Let’s Recall America” ad campaign.

The Chrysler Group is poised to announce a spate of wide-ranging recalls, having observed the trend set in recent weeks by global giants Toyota, Honda and Volkswagen. In the absence of actually developing new product, it is understood Chrysler has instead elected to focus on those areas where it remains competitive. As a result – and in a move clearly designed to outgun its rivals – Chrysler’s recall program will extend across the carmaker’s entire lineup, a point the company believes will give it a crucial advantage in the race to the bottom.

“As usual, the media is bowing down to Toyota and their precious recalls. Well, we can out-recall them. In fact, by the end of the week Chrysler will be recalling a bigger percentage of its product line than any other company – 100%!” said Chrysler PR spokesman Charlie Riven.

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Akio Toyoda is spending the weekend in Japan, being prepped for his appearance in front of the modern day version of the tribunal of the Spanish Inquisition, better known as a Congressional Hearing.

According to Reuters, and as suggested by TTAC,  Toyoda “is likely to undergo intense preparation. Toyota may hire lawyers to drill him with mock questions, one consultant said. A company source said it had not yet been decided whether Toyoda would speak in Japanese or English, but the company has already contacted some translation companies.”

The weekend drill was interrupted by the news that State Farm had informed the NHTSA as early as February 27, 2004, that the insurance company had five claims of unwanted acceleration in the 2002 Lexus ES 300 during the previous 12 months. Reuters broke the story, writing “the insurer said earlier this month it had contacted the National Highway Traffic Safety Administration in late 2007. However, prompted by the public interest in Toyota, the insurer reviewed its records again and has now found that it contacted safety regulators initially in 2004.” All hell broke loose … Read More >

Gosh, was it really just Monday that Bob Lutz was complaining about the pay problems round General Motors way? Automotive News [sub] reports that, in addition to hiring ousted CEO Fritz Henderson as a consultant, GM’s Chairman, CEO and VP for Rattlesnake Killin’ Ed Whitacre has been handed a compensation package including $1.7m in cash annually. Not to mention the $5.3 million in stock payable over three years starting in 2012, or the $2m in restricted stock. Sure, that’s not much compared to most Chariman/CEO types, but it’s not bad for a government teat-sucking, profitless wonder. Especially considering former CEO Fritz Henderson only made $950k in cash annually plus $4.2m in stock as CEO (he now makes $700k annualized as a 20 hour per month consultant). Ken Feinberg is slacking!

Because the man clearly knew how to turn The General around. Bob Lutz might not be getting paid enough for his taste, but as Henderson proves, it’s not the numbers on the check, it’s the amount of work you’re expected to do for them. Automotive News [sub] reports:

GM said it had hired Henderson yesterday as a consultant on a month-to-month basis, with the job to end some time this year. GM will pay Henderson $59,090 monthly to counsel GM on international operations. He will work about 20 hours per month and meet once a month with GM’s international president, Tim Lee, or one of his representatives.

Akio Toyoda is getting a crash course in cross-cultural studies, while he is preparing for his appearance on The Hill this coming Wednesday. Toyota already uncovered the time-tested Washington axiom: “We will fight it tooth and nail, but if we can’t stop it, we might as well dress for it.”

Saturday morning’s Nikkei [sub] greets its readers with the message that “Akio Toyoda’s appearance before Congress on Wednesday could be a chance for the embattled automaker to win back consumer trust in the U.S.”

Hedging a risky bet, the Nikkei adds: “But a poor performance could further undermine its reputation.” To avoid the latter, Toyoda is preparing to counter a three-pronged attack. Read More >