Presentation shows Toyota knew of tougher regulation

[Omaha Steve]

Source: Detroit Free Press

By Justin Hyde

WASHINGTON – Toyota’s Washington executives warned new U.S. chief Yoshimi Inaba last summer that federal regulators were getting tougher on vehicle recalls, and said the $3-billion cash-for-clunkers plan was a “conquest bill for Toyota.”

In the same presentation given to congressional committees where Toyota’s staff said limiting a 2007 recall of floor mats was a $100-million “win” for the company, the staff warned Inaba that the National Highway Traffic Safety Administration had new powers to force recalls, including civil fines.

Earlier this month, NHTSA opened three investigations into Toyota’s handling of two recalls covering 5.6 million vehicles and other complaints of sudden acceleration. In theory, the agency could fine Toyota as much as $49 million if it found the company withheld information in all three cases, although NHTSA has never levied a fine greater than $1 million over a recall.

During his testimony Wednesday, Inaba said he did not recall the July 2009 meeting where he received the presentation, but that the claim of saving $100 million by limiting the 2007 recall to floor mats was “inconsistent” with Toyota’s principles.

Read more: http://www.freep.com/article/20100225/BUSINESS01/100225028/1318/Presentation-shows-Toyota-knew-of-tougher-regulations