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NHTSA wants data from Toyota to learn if recalls were prompt

The Department of Transportation has opened an inquiry into whether Toyota Motor Corp. conducted three of its recent recalls in a timely manner.

The agency's National Highway Traffic Safety Administration has asked Toyota to provide documents showing "when and how it learned of the defects" that have resulted in the recall of 6 million of the automaker's vehicles in the U.S. because of varied acceleration and braking issues. About 2 million of the vehicles have been caught up in two of the recalls.

If you were involved in a car accident with a Toyota, call RK LAW GROUP at 800-273-9142 or email: ramin@rklawgroup.com. Check our website www.rklawgroup.com for more information regarding defective vehicles. Ramin Kohanarieh at RK LAW GROUP is the lead trial attorney at www.rklawgroup.com.

Meanwhile, Toyota said Tuesday that it plans to briefly idle two U.S. auto factories to adjust to slowing sales caused by its massive recalls in recent months.

"Safety recalls are very serious matters and automakers are required to quickly report defects," said U.S. Transportation Secretary Ray LaHood.

The auto safety agency said it will examine how Toyota learned of the defects -- for example whether through consumer complaints or factory testing.

The agency is asking about production data, incidents, complaints, warranty complaints, copies of tests, dates of meetings, timelines, and supplier information.

Officials also are checking whether Toyota has covered all affected models in its recent recalls to ensure that it did not miss any problems.

Federal law requires all auto manufacturers to notify NHTSA within five days of determining that a safety defect exists and promptly conduct a recall.

"We expect that all manufacturers address automotive safety issues quickly and in a forthright manner," said David Strickland, NHTSA's administrator.

The recalls have resulted in slowing U.S. sales for the world's largest automaker.

Toyota plans to shutter a truck factory in San Antonio for the weeks of March 15 and April 12, said Toyota spokesman Mike Goss. It also will close a Georgetown, Ky., plant that makes the Camry and Avalon models on Feb. 26 and has told workers that it might also not produce vehicles on up to three more days in March and April.

"We are trying to keep a close eye on inventory and match it to meet sales demand," said Rick Hesterberg, spokesman for Toyota Motor Manufacturing Kentucky.

The company has issued 10 million recall notices on three continents in recent months, with 2 million vehicles subject to more than one recall.

"This is a company that is in crisis control mode right now. I think they are concerned about levels of inventory," said Rebecca Lindland, an analyst at IHS Global Insight.

The largest recall, announced last fall, focuses on floor mats that the automaker said can entrap the accelerator pedal and cause unintended acceleration. The second recall addresses gas pedals that Toyota said can stick, also resulting in unintended acceleration. And last week, Toyota recalled nearly 500,000 of its hybrid vehicles, including the 2010 Prius, because of a brake problem caused by faulty computer software. So far, Toyota has fixed more than 500,000 of about 6 million U.S. vehicles that need the repairs.

The problems are slicing into Toyota's business. While most automakers posted year-over-year gains in January, Toyota's sales fell by 16% or, 18,500 fewer vehicles.

Ford Motor Co. is now expected to replace the Japanese automaker as the second-biggest seller of autos in the United States this year, according to Edmunds.com, the Santa Monica automotive information company.

Edmunds estimates that Toyota's share will fall by at least a full percentage point to below 16.5% as buyers look to other manufacturers. Before the recalls, Toyota was expected to account for about 17.6% of what many in the industry project will be 11.5 million vehicle sales in the U.S. this year, Edmunds.com said.

Workers at the plants will still be paid, they just won't be assembling vehicles, said Hesterberg. "They would be doing training or general maintenance. We keep them busy," he said.

The Kentucky factory has about 6,600 workers and has the capacity to build 500,000 cars a year, operating five days a week.

Typically Toyota has among the lowest inventory levels of the automakers. It ended the year with only a 40-day supply of vehicles. American automakers such as General Motors Co. and Ford Motor Co. typically have 70 days of inventory or more, Lindland said.

Toyota's move to idle the plants comes on top of a one-week shutdown of the U.S. factories that make eight of the most popular recalled models and indicates that the automaker does not have a glut of cars on its hands.

"This is a conservative move by a company trying to manage a situation they have never had before," Lindland said.

Posted by: on: Feb 16, 2010 @ 01:02