Toyota Hearings May Result in Automotive Reform

More oversight of the auto industry may be the result of a Congressional hearing on safety problems with several models of Toyota cars and trucks, though that increased regulation could be difficult.

Finding out who is at fault may not be easy for the U.S. House Energy and Commerce Oversight Committee investigating problems with sticking accelerators in some of Toyota's vehicles. The problem has led to 8.5 million Toyota vehicles being recalled worldwide after hundreds of crashes that resulted in injuries and some deaths.

Despite some heart-wrenching testimony from victims who were either in accidents or had close calls due to the safety problems, legislators with districts housing Toyota factories are not so quick to point the finger at the company. No doubt they fear losing even more manufacturing jobs in an industry that has already seen staggering hits.

"We don't want to just assume automatically that Toyota has done something wrong and has tried to cover it up," said Rep. Joe Barton, a Texas Republican, according to the Associated Press. He also cautioned against legislators going on a "witch hunt," but later admitted he felt the automaker's investigation was "a sham." There is a Toyota Tundra plant in Texas, according to the San Antonio Express News.

CBS News reported Rep. Steve Buyer, a Republican from Indiana, has a number of factories in his district that manufacture parts for Toyota, and questioned the motives of two expert witnesses. Buyer asked Sean Kane, president of Safety Research & Strategies Inc. of Massachusetts, if he was being paid by lawyers with litigation pending against Toyota. Kane admitted he is but said that had no bearing on his testimony Tuesday. Kane's company issued a report recently that said more than 2,000 Toyota and Lexus (manufactured by Toyota) owners filed complaint reports about sudden acceleration. The report said that sudden acceleration led to 815 crashes, 341 injuries and 19 deaths since 1999.

The exchange between Buyer and Kane got so heated at one point committee Chairman Bart Stupak, D-Mich., had to step in and cool things down.

Legislators were also being accused of having a personal stake in trying to take down Toyota. Some Toyota dealers, and even four state governors, said they felt the federal government was investigating Toyota because of the U.S. government's large share in American automakers Chrysler and General Motors.

When asked if this was true, Transportation Secretary Ray LaHood answered with a defiant "no." He also said he had contacted three of the four state governors to tell them it was not true.

"I think you should call the fourth, because I think he needs to know, too," added John Dingell, a Democrat from Michigan.

While Reuters reported Democrat Henry Waxman said the problems may mean reform for overseeing the automotive industry, change may prove difficult. LaHood confirmed he could not deal with Toyota officials in the United States on company policy, but had to travel to Tokyo to do so.

"I told Mr. (James) Lentz their business model may need tweaked a little bit," LaHood said. Lentz is president of Toyota's U.S. operations.

Waxman said the National Highway Traffic Safety Administration (NHTSA) is ill-equipped for monitoring the safety of modern vehicles.

"Ultimately, I believe addressing this problem will require legislation," Waxman said, according to Reuters. "Carmakers have entered the electronics era, but the NHTSA seems stuck in a mechanical mind set."

Automakers are watching the proceedings closely to see if changes may be coming to their industry.

LaHood also seemed to indicate the NHTSA may be undermanned and under budget, but he added the department would do its best with its resources and if Congress calls for change the NHTSA will do its best to perform those duties.

After the first day of testimony, it seems clear there are no easy answers to the problem, but it will take years and cost millions of dollars to find a solution.

Sources:

CSPAN 3

http://www.cbsnews.com/blogs/2010/02/23/politics/politicalhotsheet/entry6235684.shtml

http://www.mysanantonio.com/news/85091587.html

http://www.centurylink.net/news/read.php?ps=1018&rip_id=%3CD9E1TLD82%40news.ap.org%3E&_LT=HOME_LARSDCCLM_UNEWS

http://www.reuters.com/article/idUSN2313724820100223