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U.S. needs Toyota more than Toyota needs U.S.

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Weep no tears for the world’s No. 1 automaker. Bad as things look for it at the moment, the worst of the crisis is over, predicts Shukan Taishu (March 22). “No way,” reads its confident headline, “America can beat Toyota!”

Unquestionably, the automaker’s once sterling reputation is tarnished as it recalls some 10 million vehicles worldwide and confronts roughly $2 billion in damage claims. Symbolic of the whole affair, which began last fall with a Lexus accelerating out of control on a California freeway until it crashed and killed four people, was the rather sorry figure cut by Toyota President Akio Toyoda in his congressional grilling in Washington last month.

On the other hand, suggests Shukan Taishu, maybe he struck the right pose after all, that of facing the music and being humbled by it. “It was then,” it quotes a Washington correspondent as remarking, “that the wind began to change in Toyota’s favor.”

You see few signs of that as yet. Amid ongoing recalls the complaints and allegations multiply -- that Toyota covered up safety defects, that sales campaigns trumped engineering precision, that top management is out of touch, that the replacement of supposedly rogue floor mats is failing to solve the runaway acceleration problem. Last month’s figures show Ford, General Motors and Chrysler all with rising U.S. sales -- in Ford’s case, by as much as 40% -- while Toyota’s were down 9%.

On the other hand, a ringing endorsement of Toyota by a Democratic Party congresswoman must have cheered Toyoda considerably. “I’ve always been a Toyota owner,” she declared. “After I gave birth to my daughter I came home in a 1988 Camry -- the very car my daughter is driving today.”

So there’s more to the Toyota brand than yesterday’s damning headlines. But Shukan Taishu’s main point is that the U.S. as a whole, and the Obama administration in particular, notwithstanding the government’s newly acquired stake in bailed-out General Motors and Chrysler, can afford to indulge in only so much Toyota bashing. “Toyota,” the magazine reminds anyone who’s forgotten, “employs 20,000 people in its U.S. factories alone. If you counts its American affiliates, it employs 200,000. In that sense, Toyota figures as an important ‘American company.’” Too big to fail, in short.

By way of example, it cites a Toyota engine assembly plant in Putnam County, West Virginia, thanks to which the local unemployment rate is only 6.1%, compared to 9.7% nationally. With seven Toyota plants across the country, plus a new one slated to open this year in Mississippi, it’s possible to argue, as an (unnamed) economist cited by Shukan Taishu does, that “Toyota is a major factor in the American economy; if its fortunes fall any further than they already have, we’re looking at a potentially serious unemployment problem. Toyota-bashing, in other words, is a double-edged sword.”

The fact is, the magazine maintains, the U.S. needs Toyota more than Toyota needs the U.S. Where did president Toyoda jet straight from Washington? To Beijing, where he declared China be a Toyota priority. Naturally. It, not the U.S., is now the world’s No. 1 auto market.

“That,” comments the economist, “gave the Americans pause.”

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Whats new? A Japanese economist makes assertions based on their nationalistic feelings rather than economic facts. US is by far the largest market for Toyota and it will remain so for a foreseeable future. People who think China is a hot item, think about not in terms of overall position (it doesnt mean much) but in term of individual purchasing power. While China's overall economy is #3, their per capita GDP is FAR less than that of US. I think that it is 10 times less than that of US.

The fact remains that the average Chinese will never be able to afford a Toyota and a vast majority of China's automobile consumers buy locally made (and far cheaper) cars. If Toyota thinks that their future is with China, they are truly foolish. China itself has no interest in a foreign manufacturers leeching off their car sales. People here say that US is biased towards Toyota cause the government controls 60% of GM (we had to bail em out). Well think about this, Chinese government has a majority stake in all of Chinese car companies and has an aggressive agenda to sell Chinese-made cars all over the world (and especially in US); how friendly do you think they will be toward a foreign car company (a Japanese one at that) coming in and stealing their business?

This lady says that US needs Toyota, well that is just rubbish. Demand for cars in US is still on the rise, so if Toyota looses sales in US, it will be because US consumers instead buy either domestic cars or other foreign cars (who have factories in US too btw). Whatever US jobs will be lost because of Totota's fiasco, will be made up by US jobs created from domestic car sales and other foreign cars sales (who's factories, again, are often located in US). Often times, those companies hire laid off workers from other auto manufacturers.

These are cold hard facts and a view of someone who has been a loyal Toyota owner for the past 10 years (so I dont have domestic car bias or agenda); speaking purely from a business point of view, if Toyota doesnt play its cards right, they will be in a world of hurt.

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U.S. needs Toyota more than Toyota needs U.S.

Can we laugh, a lot? Take my brother as an example: he just gave up buying a Corolla and now is buying a Hyundai. Do we really need Toyota?

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The fact is, the magazine maintains, the U.S. needs Toyota more than Toyota needs the U.S. Where did president Toyoda jet straight from Washington? To Beijing, where he declared China be a Toyota priority. Naturally. It, not the U.S., is now the world’s No. 1 auto market. “That,” comments the economist, “gave the Americans pause.”

What a load of rubbish; made me laugh out loud. Not only do most of Americans not care about this, over 99.9% of Americans didnt even know the he went to Beijing after he testified in US or that China is #1 auto market. How can it give Americans pause if they dont even know about it? How many people in US do you think read international news (not that it's anything to be proud of)? Most of Americans think that US is the king of the world (for good or bad) and are very ignorant about things that take place outside of US. While it's cute that she is trying to make it look like Americans are scared that they will lose Toyota's attention in favor to China, the fact (and a sad one at that) remains that most of Americans just dont give a damn about what goes on outside our borders. And again, even if China is #1 auto market, the million dollar question is for what kind of autos? Certainly not for the kind that Toyota makes.

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On the other hand, a ringing endorsement of Toyota by a Democratic Party congresswoman must have cheered Toyoda considerably. “I’ve always been a Toyota owner,” she declared. “After I gave birth to my daughter I came home in a 1988 Camry—the very car my daughter is driving today.”

Congresswoman, and the majority of people are out of touch. The Toyota recall is not about a 1988 Camry it is about a 2010 Camry (recalled).

So there’s more to the Toyota brand than yesterday’s damning headlines. But Shukan Taishu’s main point is that the U.S. as a whole, and the Obama administration in particular, notwithstanding the government’s newly acquired stake in bailed-out General Motors and Chrysler, can afford to indulge in only so much Toyota bashing. “Toyota,” the magazine reminds anyone who’s forgotten, “employs 20,000 people in its U.S. factories alone. If you counts its American affiliates, it employs 200,000. In that sense, Toyota figures as an important ‘American company.’” Too big to fail, in short.

Toyota can go down the drain like GM. Nothing is impossible when people in power thinks themselves as untouchable will fall into the trap of making foolish mistakes. 200,000 jobs can disappear as quickly as it appear.

The fact is, the magazine maintains, the U.S. needs Toyota more than Toyota needs the U.S. Where did president Toyoda jet straight from Washington? To Beijing, where he declared China be a Toyota priority. Naturally. It, not the U.S., is now the world’s No. 1 auto market.

China will give Toyota, GM, and Ford among other automakers a run for their money. It is too early to say Toyota is leading because that is not the case as yet in China due to the lack of Toyota foresight in providing fuel efficient cars.

By way of example, it cites a Toyota engine assembly plant in Putnam County, West Virginia, thanks to which the local unemployment rate is only 6.1%, compared to 9.7% nationally. With seven Toyota plants across the country, plus a new one slated to open this year in Mississippi, it’s possible to argue, as an (unnamed) economist cited by Shukan Taishu does, that “Toyota is a major factor in the American economy; if its fortunes fall any further than they already have, we’re looking at a potentially serious unemployment problem. Toyota-bashing, in other words, is a double-edged sword.”

Toyota forget quality control it is not going to work because quality control is not in the majority of Americans vocabulary. Toyota better have engineers that knows what they are doing to make up for the people who assemble the Toyota vehicles so the cars can be on par.

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your brother sees Hyundai as a better alternative to Toyota ????? He wont be laughing in a couple of years...

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The U.S. market is vital to Toyota, so they shouldn't fool themselves. Still, this over-hyped safety issue will blow over, just as Ford's "exploding tire" crisis passed some 8 or so years ago. A bigger worry should be that some of Toyota's most loyal U.S. markets are teetering on bankruptcy (California, New England).

Why does America need Toyota? Everyone should remember that it was competition from Honda and Toyota that drove the U.S. auto manufacturers to improve their products. They lost major market share at the end of the 1990's, because American consumers were tired of American cars that blew their transmissions at 45,000 miles. And Chrysler never did learn (well, it learned the best way to survive was to find a sucker to buy you and support you: Daimler-Benz, Cerberus Capital Management, The Fed-Gov, Fiat - who will be next to swallow this poison toad?).

Anyway, Toyota just needs to bide its time. The U.S. automakers are in the process of replacing their well paid line workers with half-price employees. The wages will be on scale with much lighter service sector sector jobs. Quality should drop as well and Toyota will be on top again.

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Well thank you for the lecture, elephunk. Where do you teach? I'd like to sign up for one of your classes.

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@bicultural huh?

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Most of Americans think that US is the king of the world (for good or bad) and are very ignorant about things that take place outside of US.

THis is a quaint opinion of Americans.. Its several generations old though and while I think you could say most american dont stay up at night ringing their hands about what happens outside there borders, clinging to this old idea that an american MUST be ignorant of foreign events seems rather ignorant in itself.

Have you tested that opinion or do you just used it to keep yourself warm and self-satisfied at night.

As far as Toyota... American doesnt need them NEARLY as much as they need America. Its economics. Weve been through auto plants closing before. The car companies suffered much more than the COuntry over all.. and with auto sales on the rise, but Toyota in decline.. itS just a matter of time before others plans take up the slack... but this won`t come to pass. Americans love their (foreign or domestic) brands, Toyota included.

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@Philly, check and mate: http://www.youtube.com/watch?v=lj3iNxZ8Dww btw, I am an American and I am astounded by the lack of international awareness on the part of my countrymen. Recently, one of the business school students at my university was giving an in-class presentation and one of his opening statements was that "in other European countries, such as Australia...", this is a friggin senior at the university! So yeah, I think that an average American doesnt know/care about what really goes on outside US, not when compared to most other western countries.

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And again, even if China is #1 auto market, the million dollar question is for what kind of autos? Certainly not for the kind that Toyota makes.

Standing ovation from ignorant students attending the lecture.

This is not another stupid TV quiz, there is no million dollar question, there is in fact no question at all as to the fact that Toyota has produced millions and millions of extremely reliable cars that were preferred to US produced junk by same millions and millions of Americans. There exists a little problem here (no need to explain again what problem, thank you) but Toyota will solve it.

The fact remains that the average Chinese will never be able to afford a Toyota

Never is a big word. Even if it is true, there will be plenty of Chinese left who will buy a Toyota. Scaring the US is not the strategy. Looking for and exploring other markets is. Toyota will offer its technology, enter into partnerships with Chinese operations, employ Chinese people locally on their production lines and continue to lead world markets.

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U.S. needs Toyota more than Toyota needs U.S.? This is a beautiful theory that is going to get destroyed by a gang of ugly facts!

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Sorry, but the numbers just don't add up. The number of unemployed people in the U.S. is about 14.7 million. If every single Toyota employee in America lost their jobs, that number would increase from 14.7 million to 14.9 million (according to the numbers in this article), with a corresponding change in unemployment from 9.7 to 9.8, not a huge shift.

On the other hand, if Americans stopped buying Toyotas en masse, Toyoya's market share would drop by a whopping 16%. Hardly a drop in the bucket.

It's foolish to begin with to even argue that any target market needs the jobs more than the product maker needs the buyer in the same target market.

But the unnamed writer of this nationalistic fluff piece needn't concern themselves with actual data.

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Oh, what a feelingggggggggggggggggg, Toyota!

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I wonder how many of these claims are actually true, while I do believe some, it seems like a "get out of jail free" card.

Got caught speeding? Just blame it on the accelerator getting stuck. Want to get attention, make up an accelerator story like that California guy.

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When one stops to consider all the negatives associated with "The Toyota Way" the conclusion is simple- the US of A does not need Toyota ! More precisely it doesn't need;

-Deaths from Karoshi.

-The millions of defective and recalled products.

-The hundreds of (alledged) deaths and injuries associated with Toyota.

-The corporate predatory model based on market share.

-The corporate culture of ijime, harrasment, sexism- or any other illegal activity Toyota has already been convicted of.

-Ongoing accusations and court cases involving unpaid overtime, manipulated rollover data, dumping, and various violations involving patent infringement !

Not sure what the hell this author is talking about- but the US does not need Toyota and all these self inflicted wounds one ioda !

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The fact of the matter is both Toyota and the U.S. need each other. This article is too dismissive, but probably more for rhetorical perspective than fact.

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kp123; "The fact of the matter is both Toyota and the U.S. need each other"

Please look one more time at my extensive list. Can you honestly say the American people "need" any of that ?

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What a silly article.

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Isn't Toyota's potential costs of damage claims in the U.S. at least $5 billion? That's no small change!

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Branded at 12:31 AM JST - 22nd March. When one stops to consider all the negatives associated with "The Toyota Way" the conclusion is simple- the US of A does not need Toyota !

I guess the consumers don't agree with you. The 2010 Toyota Prius. Even before the Prius actually launched, Toyota sold more of these new hybrid cars than Ford will sell in all of 2009, despite the hype around the new Fusion hybrid. Yet, as Chrysler and GM sit on the near bankruptcy, However, Ford stands strong in America. Today, Ford evokes hope in the hearts and minds of those that believe the US auto industry can still compete.But, what do we really believe in? That Ford understands finance? Obviously, but what about its future products?

If Ford was rolling out Honda's new Insight hybrid, it would have instantly sold out. I Buy American only buyers are dying to put their money in an American product that proves American automakers can compete, especially when it comes to fuel efficient technology. But, can Ford truly compete in the future? Not if its cheapest hybrid is the Ford Fusion hybrid.

In recent months Ford has talked up its gains in lithium batteries. Enough talk. It's time to walk the walk and give America an Toyota Prius contender. Such a vehicle cannot, will not, fail Ford. And the hype, buzz and floor traffic it would create for Ford would result in the biggest marketing coupe in Ford history. So, can Ford compete?

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Most scholarly article (not). Toyota will be fine.

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The Party must control all auto manufacturers for the good of the common man, comrades!

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sfjp, spot on. Branded, guess you can't answer to that.

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I'm sure the congresswoman praising Toyota has one of the Toyota plants in her district. You don't bad-mouth a major employer of constituents... not if you want to get re-elected.

Even if you add in all the supporting firms, a count of 200,000 jobs is NOT "too big to fail". Many of those supporting firms would re-tool and make something else for someone else. America can live without a foreign car company doing business within it's borders. There is a glut of car companies as it is and the others would immediately snap-up the customers when/if Toyota decided to halt sales in the U.S.

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Corporate arrogance and daydreaming are at work in this article. We let big business think they are like oxygen when the facts are these. Companies come and go, the US will carry on with our without Toyota. But Toyota needs the US sales and that will be telling on their future.

I for one like Toyota and believe they will sort things out. But I am sick to death of suit wearing corporate god-wanna be-s trying to make companies more important than anything else. And even more sick of the writers to glorify companies over all else. Large corps are what is largely wrong with this planet today.

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oops, looks like Toyota lied about it not being electronics after all: http://www.cnn.com/2010/US/03/22/toyota.throttle.warning/index.html?hpt=T2

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"I'm sure the congresswoman praising Toyota has one of the Toyota plants in her district."

Yeah. You said it. Because we all know that the only reason to say anything good about Toyota is if they put a plant in your district. Way to go Fadamor! Keep it classy!

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what a freaking moron. americans needs foreign corporations raking profit of the backs of americans like they need a hole in the head. cars. america needs cars. if there were no toyotas to be had, then the public would simply buy another brand and that brand and its suppliers would employ people... might have some hardship in some cities with toyota plants if other brands were not to use the facilities but that hardly seems likely. unused plants with cutting edge technology for pennies on the dollar? it would hardly be a hickup before Ford took them over and tarus' and F-150s would be rolling out the doors.

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"Isn't Toyota's potential costs of damage claims in the U.S. at least $5 billion? That's no small change!"

Golly. I see better critical thinking skills on Yahoo Answers. 42 accidents since 2000. 5 billion would be 120 million for each plaintiff. How likely is that? Assuming you could even get punitive damages, which seems pretty unlikely considering that the US government has not even fined Toyota, and that its recall was voluntary, AND that some of these cases are likely attributable to driver error, like that one in New York, and I am thinking that the number will be a lot closer to 10 million than 5 billion.

Please, please don't believe me. I won't try to convince you. I will just point out your foolishness for ridicule, believing any old thing as you do. Seriously, you are hilarious. Are you even close to making sense? Bhopal was 470 million (8000 dead, gassed by Union Carbide). Exxon Valdez was 1 billion. Ford Pinto litigation put a value on a human life of 200,000 dollars, so by that calculation, even if 400 people had died in the US from some Toyota problem instead of let's say, maybe 5, then the settlements would be... 80 million.

So here we are. Not one case has been established as the result of Toyota negligence. This liability is going to be three times bigger than Bhopal, Exxon Valdez and Ford Pinto put together? WOW! I think I can see why this Beck character has such a healthy following.

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Hakujinsensei, you are absolutely right. I have no doubt that Americans will drive any old thing and do exactly what their government tells them to do. I also think that the scenario fits in really well with the "Obama is turning the US into the USSR" paradigm. You should develop that. For the longest time, foreign cars were not imported into the USSR. It made it easier for the USSR to protect its domestic companies.

Of course, their quality just got worse and worse, but GM has already got that part nailed, so I say go for it. Time to kick Toyota out and go full commie. Then you and all the other right wingers can finally be happy with Obama as your uber-comrade.

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5SpeedRacer5, the billions you scoffed at don't come from deaths, but from class action suits and general costs to cover the recalls... nice summary here: http://blogs.barrons.com/stockstowatchtoday/2010/03/09/wsj-toyotas-6b-headache/

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5speedracer5- keeps churning along;

"the US government has not even fined Toyota"

No- not yet as the investigation has barely started. Odd, how they do that in America. I mean, waiting for all the facts before making a decision- how strange.

"and that its recall was voluntary"

Toyota's recalls were hardly "voluntary" ! They were backed into a corner and were given an ultimatum by the US government- in short, they had no choice !

"AND that some of these cases are likely attributable to driver error, like that one in New York"

This most recent case in NY has not been proven to be "driver error". The ongoing investigation has determined that the throttle was indeed wide open but the computers did not register the activation of the brakes. Investigators are now looking at the brake pads and tires to determine if the brakes were indeed applied. 5speedracer5- you are awful quick to claim innocence aren't you ? Unfortunately there are more than 50 cases of drivers getting killed in these Toyotas (alledged) and hundreds of inuries (alledged)- a mountain of complaints and reports of unintended acceleration- loooong before any of this poo hit the fan- not "alledged" but "fact" ! I believe the total cost to Toyota, over the long haul, will be in excess of 5 billion- throw in lost customers, damage to the corporate name, and jail time for Toyota execs involved and well...in a word, this is "priceless".

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BTW people- the internet is literally blowing up with accusations, new ones, against Toyota- "Stalling vehicles" is the latest ! And there is also the claims by analysts that Toyota's claims to advanced testing techniques is bogus, Toyota tests are simply unreliable ! Advanced engineers are now pointing to "sun spots" and "cosmic rays" that have been known for years to affect radio waves and air traffic controls as the possible reason for all these unintended accelerations. Seems Toyota's computer systems use many of the same technologies- yeh, and you thought Toyota invented this stuff themselves ? In any case "freep.com" has some excellent analysis- all pointing to the same thing- Toyota knew from day one the risks involved with this technology ! Lie strapping a rocket to a gremlin and then claiming ignorance when the thing exploded ! Scandelous behaviour !

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Branded at 12:55 AM JST - 24th March. This most recent case in NY has not been proven to be "driver error". The ongoing investigation has determined that the throttle was indeed wide open but the computers did not register the activation of the brakes. Investigators are now looking at the brake pads and tires to determine if the brakes were indeed applied. 5speedracer5- you are awful quick to claim innocence aren't you ?

Your wrong again. Look and wait for facts before you make comment like above. Here is the article on 3/22/10. Source: http://www.insideline.com/toyota/prius/toyota-prius-crash-driver-error-again.html

The second of two highly publicized cases of unintended acceleration in a Toyota Prius has been attributed to driver error, according to police in Harrison, New York, who have completed their investigation of the incident. In response, Toyota issued a statement on Monday saying "we remain committed to investigating reported incidents of unintended acceleration in our vehicles."

It is the second time this month that a dramatic case of unintended acceleration in a Prius has been debunked. On March 15, Toyota picked apart a California man's account of his runaway 2008 Toyota Prius, saying "there are strong indications that the driver's account of the event is inconsistent with the findings of [its] preliminary analysis,"

In the New York case, a 56-year-old woman driving a 2005 Prius out of a driveway was injured when the car sped out of the driveway and hit a stone wall. During a press conference on Monday, Harrison, New York, police said the "vehicle accelerator in this case was depressed 100 percent at the time of collision. There is absolutely no indication of any brake application," according to media reports.

Earlier, the National Highway Traffic Safety Administration issued a preliminary report in that case saying information retrieved from the vehicle's on-board computer systems indicated there was no application of the brakes and that the throttle was fully open.

Toyota took pains to appear gracious in its Monday response to the Harrison case.

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"Toyota took pains to appear gracious in its Monday response to the Harrison case."

Absolutely- considering Toyota engineers, at least according to the news reports, are the ones "inspecting" the black boxes ! The farce continues- These inspections need to be handled by "independant" agencies with real engineers, not Toyota representatives or former employees connected to Toyota or the NHTSA.

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I have no doubt a large portion of these new claims are attempts at fraud in order to make a quick buck in any class action suits that may arise. Toyota is going to have a heck of a headache trying to sort valid claims from bogus ones.

Speedracer, had the article actually IDENTIFIED the congresswoman they are quoting, I would have been doing less guessing and more stating of facts.

But the plain truth of the matter is that as a politician you do not endorse a product experiencing safety questions unless you have a very good political reason for doing so. If the safety issues are verified, you can bet your "endorsement of a deadly product" will be plastered all over the opponent's ads during the next election cycle... UNLESS the constituency includes that product's employees.

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fadamor; "I have no doubt a large portion of these new claims are attempts at fraud in order to make a quick buck in any class action suits that may arise. Toyota is going to have a heck of a headache trying to sort valid claims from bogus ones."

I agree to a point- that a "small" portion of these claims may be bogus or even honest mistakes. But that should not deter from the fact that more than 50 citizens have been killed (alledged) and hundreds injured (alledged). Toyota has created this monster so the onus is on them to right this wrong- but they still refuse to do it ! They are still playing games with the black boxes, internal mailings, hidden data, time lines, and information in general. Fortunately US citizens are protected by laws- laws with teeth too. Toyota is about to experience the biggest bite to their corporate backside since Horiemon was shut down and sent to prison.

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oops, looks like Toyota lied about it not being electronics after all: http://www.cnn.com/2010/US/03/22/toyota.throttle.warning/index.html?hpt=T2

oops, looks like some Americans have been lying about their accidents

http://search.japantimes.co.jp/cgi-bin/nn20100324a2.html

the 3rd one ive read about

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Toyota, just like all other car makers, have BLOOD on their hands!

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No it does not!

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This was a scam made up to protect US auto makers.

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obviously Toyota has no idea how in america, if you give us enough reason to dislike you we have no problem dropping you and moving on. I think toyota needs to stop with this attitude of superiority and find some good does of humility before this whole gets dug even deeper.

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A Democratic Party congresswoman drives Toyota but Toyota won't name her...well, she or someone must be real proud to have her remain omitted.

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