Toyota 'boasted of £64m recall saving'

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Toyota officials claimed they saved the company $100m (£64.5m) by successfully negotiating with the US government on a limited recall of floor mats in some Toyota and Lexus vehicles, according to new documents.

The Japanese car giant, in an internal presentation in July 2009 at its Washington office, said it saved $100m or more by negotiating an "equipment recall" of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.



The savings are listed under the title "Wins for Toyota - Safety Group". The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.



The documents could set off alarms in the US Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls.



Two House of Representatives committees are holding hearings this week on the car maker's recall of 8.5 million vehicles in recent months to deal with safety problems involving accelerator pedals, floor mats and brakes.



The world's largest car maker has been criticised for responding too slowly to complaints of sudden acceleration in its vehicles, threatening to undermine its reputation for quality and safety.



The documents were turned over to the House Oversight and Government Reform Committee and obtained by The Associated Press. The presentation was first reported by The Detroit News.



A Toyota spokeswoman did not immediately comment.



Kurt Bardella, a spokesman for Rep Darrell Issa, the top Republican on the Oversight Committee, said the documents raised questions on "whether Toyota was lobbying for less rigid actions from regulators to protect their bottom line".



The new documents show the financial benefit of delay. In the presentation, Toyota said a phase-in to new safety regulations for side air bags saved the company $124m (£80m) and 50,000 man hours. Delaying a rule for tougher door locks saved $11m (£7m).



On defect regulations, the document boasts that Toyota "avoided investigation" on rusting Tacoma pick-up trucks. The National Highway Traffic Safety Administration investigated the case in 2008 but closed it without finding a safety defect. Toyota agreed to buy back certain rusty pick-ups, inspect other and extend warranties.



The document lists seven "Wins for Toyota & Industry", including "favourable recall outcomes", "secured safety rulemaking favourable to Toyota" and "vehicles not in climate legislation". Another page lists "key safety issues" including "Sudden acceleration on ES/Camry, Tacoma, LS etc".



In one passage, the document says Toyota "negotiated 'equipment' recall on Camry/ES re SA; saved 100M+, w/ no defect found".



NHTSA had launched an investigation in March 2007 over allegations that floor mats were interfering with accelerator pedals. Toyota told the government a month later that there was "no possibility of the pedal interference with the all-weather floor mat if it's placed properly and secured".



By that August, the government had connected the problem to a dozen deaths and a survey of 600 Lexus owners discovered 10 per cent reported sudden or unexpected acceleration. But the recall in September 2007 was limited to 55,000 Camry and ES350 vehicles to replace the floor mats.



The 10-page internal presentation was dated July 6 2009, less than two months before a high-speed crash near San Diego killed a California highway patrol officer and his family and reignited concerns over sudden acceleration in Toyotas.



In October 2009, Toyota issued its largest-ever US recall, involving about 4 million vehicles, over concerns of pedals getting stuck in floor mats.



The presentation lists Yoshi Inaba, Toyota's chief executive in North America, on its cover. He is due to give evidence before the House Energy and Commerce Committee on Wednesday, along with Toyota president Akio Toyoda and Jim Lentz, president of Toyota Motor Sales USA.



Separately, the government said last night it was already investigating reports of sudden acceleration in Toyota vehicles when the nation's largest car insurer shared complaints about the issue.



The Transportation Department released documents showing that in December 2003 it began investigating 39 complaints of sudden acceleration involving 2002-03 Toyota Camry saloons. That was about three months before State Farm shared with NHTSA complaints of sudden acceleration in 2003-04 Lexus ES300s and 2002-04 Camrys.



The document released by Transportation Secretary Ray LaHood said the department had received allegations of 26 crashes and four injuries involving drivers complaining of their vehicles surging when backing up, pulling in and out of parking spaces and changing gear.



Reports of deaths in the US connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the toll of deaths allegedly attributed to the problem reaching 34 since 2000, according to new consumer data gathered by the US government.

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