Toyota Recalls
With the extraordinary foofarah surrounding the recall of Toyota products, one can’t help but wonder if U.S. officials aren’t engaging in deliberate media manipulation to damage the reputation of a foreign auto manufacturer in order to provide a market advantage to domestic auto makers. One also wonders about the timing of this foofarah, coming as it does in the midst of renewed attention on the “Buy America” provisions of the U.S. government’s stimulus package. Coincidence? I leave you to be the judge.
Toyota initiated a voluntary recall on a number of makes and models. So what? Car manufacturers do it all the time. Nevertheless, I can’t remember when a recall attracted so much media attention for such low-risk concerns. There are millions of units on the road, no fatalities reported and only a handful of minor injuries related to defects (sticking accelerators and braking issues).
Nor can I remember when a recall has been so expensive. The cost is now estimated at $2bn in the U.S. alone. But fears of consequences to sales and reputation are reflected in a $33bn drop in Toyota’s market capitalization. Ouch. Now concerns have spread to the 2010 Prius.
But alongside the market punishment is another form of punishment. Transportation Secretary Ray LaHood told owners of recalled Toyotas that they should stop driving their cars. He later retracted the statement, but by then the damage had been done. Now, it appears that the U.S. Transportation Department will be launching a formal investigation into the braking system of the 2010 Prius. Not only does Toyota have to weather an economic storm, but it also has to brace itself for a “Buy America” mudslide that threatens to dump all over it.
Could this be – maybe, just maybe – a case of classic American xenophobic protectionism hiding itself behind corporate-speak and a folksy concern for consumer safety? When Toyota executives are being hauled onto the carpet to testify before a congressional committee, I can’t help but hear faint echoes of an earlier time when the House Committee on Un-American Activities was sitting. Could this be McCARthyism?
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Disclosure:
I own a 2010 Toyota Prius. At various times, I’ve owned American-built vehicles too (GM & Chrysler products). Like all other automobiles, the Prius is not a perfect car. There is a significant blind spot. And the concern about its braking system is a legitimate concern. I have noticed a “lurch” as it comes to a stop on uneven ground or when slowing suddenly into a turn. I spent a couple hours yesterday afternoon trying to reproduce that “lurch” but there was nothing I could do to persuade my car to misbehave. Notwithstanding some drawbacks, the 2010 Prius is by far the best car I’ve ever owned. I can’t speak for Ford products, and certainly Ford’s reputation for quality has gained considerable ground in the last couple years. But as for GM and Chrysler products, there is such a disparity in quality that it isn’t even worth discussion.
When people ask if I like the Prius, I compare it to Apple’s MacIntosh computer. I’ve heard that there are Mac users who switch to PCs. I’ve never met any of them, but I’ve heard they exist. On the other hand, I know lots of people who switch in the opposite direction. Once they start using a Mac, they wonder why it took them so long to make the switch. The Prius is like a Mac. Once you start driving one, you wonder why you ever wasted your money on American-built cars.
(Feb. 05, 2010)
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