w/ (GM) Government Motors
Posted on 03/20/2014 5:19:26 AM PDT by SoFloFreeper
Toyota will pay a record settlement of more than $1.2 billion to resolve a federal investigation into its disclosure of deadly safety flaws that caused vehicles to suddenly accelerate, Attorney General Eric Holder announced Wednesday morning while laying out a blistering critique of the giant automaker’s actions. The settlement will allow Toyota to avoid criminal prosecution. The sudden acceleration problem, which was linked to faulty floor mats and accelerator pedals, resulted in the recall of more than 9 million cars worldwide and was tied to 37 deaths.
(Excerpt) Read more at politico.com ...
This sounds on the surface like a big deal, but 1/3 of current year’s profits is not such a big deal. It’s a temporary setback at best that will not have much of an impact on Toyota at all. One only has to look at the big picture to see. Look at the stock market. Investors see stock values in their individual investments fluctuating by 1/3 from their peaks all the time, especially in the hot traded volatile stocks. So as a publicity stunt to make Holder look like he’s accomplishing something for the consumer, it makes great press. In actuality, it’s a lot of smoke and mirrors that means little.
Toyota agreed to an $8 billion payoff. Some of it went to Jesse Jackson--I'm not sure how much, or whether he continues to get money each year from that settlement.
I have a Toyota which I bought before all that. It has made me very reluctant to consider buying another Toyota--I don't want to put money in Jesse Jackson's pocket.
No kidding!
I don’t drive a Toyota any more but have had several and love them. Heck, my 1983 Supra was still running well when I sold it in 2003.
I now review cars and am fascinated to find Toyota really starting to make interesting cars again, ones that are nice to drive instead of just boring bulletproof appliances. The new Corolla is very nice, even with a damn CVT, and I was impressed by the Avalon recently, too.
OTOH, Lexus is going the other direction. IMNHO.
I’d have bought a Toyota last time (fall 2012) but they didn’t really make anything I wanted to own except the Venza, which was too new for my used car budget. And since no other Japanese company really turns my crank (Honda excepted, possibly) I bought my first German car. I’ve fallen under Audi’s spell and bought a 2005 A4 Avant, V6, six speed manual, lowered suspension. I love it!
Probably won’t be as reliable as a Toyota, but so far so good. Fortunately, my work means I don’t put a lot of miles on it so it should last just fine. It better!
cheers
Jim
Where is the money going? Is this another scheme to funnel money to a bunch of liberal groups?
There are several US plants - the one I know of is in Frankfort, KY - and it is huge - been there for many years.
Funny how all of Toyota’s “problems” started when O-Motors kicked in....weird ain’t it?
Agree, but also wonder what the amount of the bribe was that Toyota refused to pay holder that prompted this vindictiveness?
Toyota WAS exonerated.
This is nothing but a shakedown.
GM is safe for now.
They are a federal agency.
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