State Farm, the US’ largest automotive insurance company, began warning federal regulators in 2007 about unintended acceleration in Toyotas, the
Washington Post reports. Yet the National Highway Traffic Safety did not begin to act for more than a year after State Farm’s initial alerts. This
revelation follows by more than a decade the insurer’s warnings about Ford Explorer rollovers, which the Post reports led to a congressional
investigation, and legislation that “created an “early warning” system for auto safety.” But NHTSA apparently hasn’t been paying attention to the information it has collected. Randy Whitfield, a Maryland consultant, using data from NHTSA, two years ago determined that the 2007 Toyota Camry and Lexus ES 350 had excess injuries due to unexpected acceleration. State Farm insures more than 40 million customers.

The Japanese government is getting increasingly worried that the Toyota debacle might turn into a worldwide backlash against Japanese cars, or even all Japanese products. As the world’s 4^th largest export nation, Japan has a lot to worry about.

Today, large parts of the Japanese cabinet came down hard on Toyota, says the Nikkei [sub]. Read More >

It’s the software, stupid. At a press conference at 3:30 pm Japanese time, Toyota came clean and announced that it will recall 223,068 hybrid vehicles in Japan, including its latest Prius model and three other models–the Sai, the Lexus HS250h and the Prius Plug-In Hybrid, says the Nikkei [sub]. They will get a re-flash of the brake software.  Worldwide recalls of affected models will follow. This ends – for now – weeks of waffling over the latest in a series of Toyota problems.

The recall will start Wednesday. A total of 199,666 Prius vehicles manufactured between April 20, 2009 and Jan. 27 of this year will receive new ABS software. Read More >

As the search for clues to what went wrong with Toyota’s much-vaunted quality rolls on, Automotive News [sub] has discovered that Toyota discontinued top-level quality-focused meetings shortly after Akio Toyoda took over early last year. The “Customer First” quality meetings were instituted under Toyoda’s predecessor Katsuake Watanabe as a response to Toyota’s 2005 recalls. A Toyota executive involved with quality decisions at the time tells AN [sub] that the Watanabe-headed committee simply disappeared over time:

We saw that the whole company and each division understood what they need to do in terms of Customer First operation. It became a daily activity rather than a special activity. So they didn’t need an executive to instruct them. Because Customer First is something like a philosophy, Customer First activities themselves are continuing. But we don’t have an official organization like a committee.

Ironically, Toyoda used the term “Customer First” repeatedly in his comments to the Japanese press last week. How he squares that emphasis with the decision to cut an executive-level committee named for that phrase remains very much to be seen. Meanwhile, his motivations for cutting the program couldn’t be more obvious, as the slow-and-safe approach added months to vehicle development time.

If there’s one certainty in the car business, it’s that you know a company is in trouble when their ads forgo showing off their latest models in favor of gauzy images of beloved products past. It’s a trick that the Detroit firms have played to death over their 30 years of decline, and now Toyota is dipping a toe in the soothing waters of nostalgia. For contrast, check out Hyundai’s “more-Toyota-than-Toyota” Super Bowl spot after the jump.
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Readers of the Nikkei [sub] were greeted this morning with the purported news that by the end of this month, Toyota “is expected” to recall its Sai and Lexus HS250h hybrids, which use the same braking system as the Prius hybrid. Furthermore, “the company is believed to have decided” to recall the current Prius, “and is expected” to notify the Transport Ministry of the plan early this week. Read More >

After piles of books have been written about the „Toyota Way,“ this round of recalls will have a permanent place in the annals of how to completely NSFW-up crisis management. The epicenter of the disaster at Toyota is not in the pedal dept., it is not in the software development dept., it is in the Public Relations Department in Toyota City. Or possibly, right at the top.

Last Friday evening, Toyota trotted out their CEO and founder’s grandson Akio Toyoda to address the complaints about Prius brakes. Toyoda said nothing of substance. What irked the public, and what became instant fuel to the already raging fire, was that Akio Toyoda refused to address the fact that Toyota had changed the Prius software, and changed the braking hardware in January, for cars in production. People wanted to know what happens with the cars they had already bought. Akio Toyoda left his customers in a lurch. Answering in very bad English instead through an interpreter made matters worse.

A day later, Reuters wrote that Toyota will recall the Prius “in the next few days.” Who was the source? A Toyota spokesperson? Nah. A “person close to the matter?” Nope. The source was a Toyota car dealer. “Toyota officials were not immediately available to comment.”

Today, the Nikkei [sub] writes that Toyota “has decided to recall and repair free of charge the latest model of its Prius hybrid sold in the domestic market due to complaints over brake problems.” And who’s the source? A Toyota spokesperson? Nah. Read More >

Oy, will they get slaughtered for that: So Toyota Prez. Akio Toyoda met the press late in the Japanese evening in Nagoya. And what did he say? Basically nothing. He said he “ordered swift action” to get a grip on the reported brake problems of the (in Japan) wildly popular Prius hybrid. But he didn’t say anything else. Recall? Shirimasen. (I don’t know.) Free repair if customer requests it? Shirimasen. Computer reflash? Shirimasen. Does Toyota know what’s going on? Shirimasen. Apparently, LaHood’s threat of bodily harm was lost in translation. Read More >

Toyota’s President Akio Toyoda will do something highly unusual tonight: The usually reclusive CEO will meet the press in Nagoya on Friday night at 9 p.m. Japanese time to discuss product quality, says the Nikkei [sub]. Toyoda won’t face the Fourth Estate all alone. Executive Vice President Shinichi Sasaki will also attend, and hopefully deflect the worst.

The press conference is not for Japanese consumption. Friday night at 9, most papers are put to bed, and the evening news are over. The meeting is for U.S. consumption. Friday night at 9 in Nagoya is 7 a.m. in New York. Read More >

Ford says emphatically no, but the evidence (such as it is) indicates certain similarities. Let’s take a look…

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According to MSNBC, Toyota’s US-based spokesfolks are refusing to confirm a Nikkei report that Toyota has issued a recall of 270,000 2010 model-year Priuses for brake issues the company has already acknowledged. “We have no information on any decision to recall the Prius,” said Toyota Motor Sales USA spokesman John Hanson, who said the company is working with the NHTSA on a “preliminary evaluation” of the problem. According to another report, the recall (which will be filed “shortly”) involves 100k Priuses in the US market, with the remaining 176k in Japan.

While Toyota may or may not recall the Prius, Ford is not recalling its Fusion and Mercury Milan Hybrids for what appears to be a similar issue (poor transitions between regenerative and conventional brakes). Instead, Ford is instituting a “Customer Satisfaction Program” involving free software upgrades it says will fix the problem, which was first reported by Consumer Reports.

UPDATE: Ford responds with a press release after the jump.

UPDATE 2: While we sort some of these late-breaking developments out, here’s another spurious log for the fire: ABC News impugns “federal investigations were extremely limited in scope, after negotiations involving former safety investigators who had been recruited to work for Toyota’s Washington, D.C. office.”

UPDATE 3: Oy!

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TTAC has reported on VW’s plans to become the global number one. Looking at Toyota’s current quality problems, one could be excused for thinking that there just might be some substance to Wolfsburg’s plans. After all, Toyota’s days of glory seem to be over, while VW is on a roll, with sales growing and quality improving. Right?

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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 >

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LaHood may struggle with some of the technical details (like, you know, how to actually stop unintended acceleration), but he’s got the politics down pat. The gameplan in these kinds of situations is simple: scare the public, shame the automaker, and say lots of things that make it sound like you’re taking charge. Like threatening Toyota with the maximum allowable $16.4m in civil penalty fines [per the Detroit News], potentially shattering the previous recall fine record of $1m set by GM in 2004 for its handling of a windshield wiper recall. The fact that all this makes the government’s “investments” in the auto industry look a little better is just the gravy on top. [UPDATE: Reuters reports that LaHood meant to say that “owners concerned about unintended acceleration should instead seek out dealers for advice and necessary repairs.” You know, instead of implying that all Toyotas are fundamentally dangerous. “What I said in there was a misstatement,” confessed LaHood. [Hat Tip: commenter Fonzy]

“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 >