If news about recalls can’t bring Toyota sales in China to their knees, maybe insurance premiums will.

The Nikkei [sub] reports from China that insurance premiums on Toyotas have recently risen by as much as 40 percent. Insurance premiums are going up everywhere in China. No wonder, considering that more than 100,000 die a year on China’s roads, and about half a million are wounded. But Toyota premiums are rising particularly sharply. (Read More…)

A Toyota press release [via Marketwatch] reads:

Toyota Motor North America, Inc. (TMA) today announced that Toyota has committed $250 million to its contracted manufacturer New United Motor Manufacturing, Inc. (NUMMI) to fund transition support for NUMMI’s salaried and hourly team members. Toyota’s financial support is enabling NUMMI to offer bonuses to salaried and hourly team members who continue to produce quality vehicles for Toyota through April 1, 2010, when Toyota’s production contract with NUMMI will end. This funding is subject to ongoing negotiations between NUMMI and the United Auto Workers with respect to those hourly team members represented by the union.

[Hat Tip: PickupMan]

When it comes to the cause of the alleged Toyota unintended acceleration, the TTAC commentariat is divided into two camps:

One side is convinced they know what’s wrong with Toyota. (It’s the cursed computer. May it roast in hell and grow tin whiskers.)

The other side isn’t so sure and argues for caution. It could be pilot error. Plain old hysteria also isn’t ruled out. Or some trade warfare that reared its no so pretty head at yesterday’s hearings: “You block our beef because of mad cow disease. We do the same to your cars.”

Well, who says life is fair. Flash: The doubters are being discriminated against. The commentators who know what’s wrong with Toyota can become instant millionaires. Here is how it works: (Read More…)

When we reported that unintended acceleration in general and Toyota in particular are not a big topic in Europe and Japan, the answer was: “What do they know? They use their excellent public transport system and drive less.” (A myth, by the way. Unless there are mandatory annual odometer readings, nobody knows for sure. But the generally accepted average number of miles driven by year and car is 12,000 in the U.S.A. In Germany, the industry works with a 20,000 km average. Which is 12,427 miles.) The only countries halfway accepted as comparisons were Australia and Canada. Well, their numbers are in. (Read More…)

In testimony before the Senate Committee on Commerce, Energy and Transportation, Transportation Secretary Ray LaHood said he was “looking at the possibility of recommending” mandatory brake override systems on all new vehicles sold in the US. Given the congressional hysteria about auto safety in the past few weeks (not to mention the already-expectant MSM headlines), such a requirement would likely face little political opposition. When Toyota first announced that it would be installing the buzz-worthy “failsafe” system on its new cars, we whined that the days of doing burnouts in Mom’s autobox IS350 were over. Which, frankly, was fairly petty of us. At this point it’s become fairly clear that, whether there are unfound defects still lurking in the evil minds of our appliance-mobiles or not, Americans need to feel that they could stop their cars in a worst case demonic possession scenario. So let them eat brake override systems, say I. At least until I hear someone advocating for mandatory manual transmissions.

Toyota and GM have both announced 0% financing on 2010 models, reports Automotive News [sub]. GM will offer the 60-month financing deal on 55 percent of its new models, while Toyota will offer the same terms on its Camry, Corolla, Matrix, Avalon, Yaris, Highlander, RAV4 and Tundra (not including hybrids). According to GM’s Susan Docherty, Toyota’s woes had nothing to do with the decision to offer finance deals, telling AN [sub]:

Obviously, with our hot launch products, we don’t need to put 0 percent financing for 60 months on that. That 0-for-60 will be primarily on products like our pickups. That’s completely in line with what our marketing strategy is. We’re going headstrong into truck month for both Chevrolet and GMC, which is a traditional play that we have normally done during March.

And no wonder: GM’s truck sales were flat in February. According to Automotive News [sub], Toyota will also offer several lease and dealer cash deals which vary from region to region.

Yesterday I asked our Best and Brightest if congress should hear testimony from former Toyota lawyer Dimitrios Biller. The lack of unqualified endorsements mirrored my own skepticism about the testimony of a guy who has sued Toyota several times, and today it seems that congress may just agree. When the House Oversight Committee wrote Toyota’s Yoshimi Inaba asking for a response to Biller’s accusations, it attached several of Biller’s apparently damning documents to its letter [PDF of original letter and attached Biller documents here]. But, as the Detroit News reports, the letter has been reposted without the attached Biller documents after Toyota claimed they violated attorney-client privilege (the alleged internal memos all have non-disclosure requests attached). Senate hearings on the Toyota recall have just started, and are available at Cspan.org.

Toyota was listening closely to the “revolving doors” talk at last week’s hearings.

In today’s Senate committee hearing, Toyota will announce that former U.S. Transportation Secretary Rodney Slater has come on board to lead Toyota’s new quality panel of independent experts, reports The Nikkei [sub] this morning.

Slater was Bill Clinton’s LaHood. He since joined the lobbying firm  Patton Boggs and became a partner in James Lee Witt Associates, a risk management firm headed by former FEMA head James Lee Witt.

Tomorrow the Senate will be taking its shot at the Toyota scandal, with hearings scheduled before the Committee on Commerce, Science & Transportation. Giving testimony will be three Toyota executives including Yoshimi Inaba, NHTSA Administrator David Strickland and Clarence Ditlow of the Ralph Nader-founded Center for Auto Safety. Conspicuously absent from the list is Dimitrios Biller, the former Toyota lawyer who claims that Toyota hid documents related to vehicle design from discovery in several suits against the automaker. The House Oversight Committee has reviewed a number of Toyota communications courtesy of Biller, and a letter from chairman Ed Towns (D-NY) demands that Toyota answer Biller’s charges [Towns’ letter and Biller documents in PDF format here, courtesy of DetNews]. By invoking Biller’s charges, Towns has dragged yet another witness into the fray whose story raises more questions than it answers [one of Biller’s several suits against Toyota can be found here.] And yet, probably because of his complex backstory] there are no plans for Biller to testify under oath before congress. Should he, or does his testimony just cloud the picture even further?

„Itai!“ Or rather, „tong!“ Ouch, that hurts: Toyota boss Akio Toyoda bowed deeply to 300 reporters assembled in Beijing, and to 1.3b Chinese who could watch the drama live on national TV. Four times in one hour, Toyota’s chief  “apologized to customers in China for the company’s quality problems and emphasized the significance of the nation’s fast-growing market to his company,” as Shanghai Daily has it. There must be nothing more painful for an upstanding Japanese captain of industry than to bow deeply in front of the Chinese. But as they say in China: „bú tòng bù qiáng.” No pain, no gain.  Even more astonishing: (Read More…)

Japanese sales of new cars and trucks continue their solid comeback in February. Japan has filed away carmageddon. Japan is utterly unimpressed by the Toyota troubles. Japan has not been spared Toyota recalls. The hearings and public apologies have received wide coverage in Japan. And what is the Japanese reaction? A plus 47.9 percent vote of confidence. With the currently very tight Japanese wallets. There is a long waiting list for the Prius, Toyota’s best selling car. [Editor’s note: Japan is currently in the throes of its own Cash-for-Clunker prgram]

Also interesting: Sales of minivehicles, formerly feted as the future, are barely holding their own, whereas sales of “real” cars continue their double digit climb. Let’s look at the numbers: (Read More…)

Let’s make something very clear: This is not a post about Toyota. We are not advocating or accusing any brand. This is a post about a phenomenon called sudden unintended acceleration. An American phenomenon, as it seems at first glance. To get to the bottom of it, we need your help.

MarkKyle64 asked an interesting question during the discussion of TTAC’s NHTSA Data Dive: 95 Cars Ranked In Rate Of Unintended Acceleration Complaints:

”Can TTAC find out, for example, if German drivers report lower levels of UA than American drivers?”

I tried to. In an admittedly unscientific way. I had no other choice. (Read More…)

A quiet Sunday. Time to fire up Google and put in “Toyota AND [cause OR reason].” We come up with ample explanations why Toyota is not called Toyoda.  Or why Peiping turned into Peking, and then into Beijing. What about the causes of sudden acceleration? Let’s see what we find. (If you have other things to do on a  Sunday: We find a lot of questions and no answers.) (Read More…)

Toyota may record “a double-digit drop in the automaker’s U.S. sales for February,” says The Nikkei [sub] today. The Nikkei bolsters the assessment with interviews at dealerships in the U.S.A., but knowing the Nikkei, a sales droid in northern California is not their only source.

The Nikkei notes that “Toyota was the only major automaker to suffer a double-digit sales decline in the U.S. last month. Its sales were down 15.8 percent from a year earlier, compared with the 24.4 percent and 14.6 percent growth enjoyed by Ford Motor Co. and General Motors Co..”

A continuation of this trend would be extremely dangerous for Toyota. We are comparing with the absolutely worst times of carmageddon, and if you are double digits below carmageddon, you roast in hell. (Read More…)

Surprisingly good news out of Japan: Seemingly unimpeded by the Toyota-bashing, production of cars, trucks and buses in Japan increased 30.7 percent on year in January. Output is up for the third consecutive month, the Japan Automobile Manufacturers Association said today via The Nikkei [sub]. Vehicle output rose to 753,773 vehicles in January from 576,539 vehicles in the same month a year earlier.

Even better fared Japan’s exports of cars, trucks and buses: Exports shot up 45.6 percent from a year earlier in January, the first rise in 16 months, says The Nikkei [sub] in a separate report. “Shipments to key markets such as Asia, Europe and” – gasp – “North America increased in line with recovering auto demand.” To this embedded observer, it seems as if the jobs created by this brouhaha are in Japan.

Let’s see what the next month brings, especially in the U.S. Awfully little, predicts Reuters. (Read More…)