The Auto Writer

Jim Lentz to testify before Congressional committee

Transportation Secretary Ray LaHood

The beat goes on today for Toyota. Or should I say the beat down continues for the world’s largest automaker.

Later this morning the president of Toyota Motor Sales USA, Jim Lentz, will join US transportation secretary Ray LaHood in testifying before the House Energy and Commerce Committee. Lentz will seek to defend his company in the face of a relentless barrage of criticism as well as to try to lessen the blow of what appears will be huge civil and criminal penalties against Toyota.

Electronic Issue

On Monday, Toyota revealed that they had been hit with subpoenas from the Securities and Exchange Commission (SEC) and a federal grand jury with the house committee also issuing an 11-page letter outlining what will be discussed today. The central point of that letter says that Toyota has been resisting the possibility that an electronic issue is at play when it comes to vehicle acceleration.

Separately, LaHood’s team received a letter outlining Congress’ concern that his department does not have the expertise to evaluate possible electronic control defects.

Unfriendly Committee

For Lentz, he will be walking into the lion’s den when he meets with Congress. The US government is a major shareholder in General Motors and Chrysler which means that Toyota’s problems may work to their respective gains especially for GM. Two influential Democrat congressmen head up the house committee, Henry Waxman of California and Bart Stupak of Michigan.

Neither congressman has been known as being particularly friendly to Toyota given that the Japanese automaker has been taking sales from America’s car companies for years while running non-union factories, most of which are located outside of the rust belt. Another important committee member, John Dingell, represents the house district which includes Detroit.

Moving Forward

Toyota’s president, Akio Toyoda, arrived in Washington, DC over the weekend and is expected to testify on Wednesday. Toyoda, grandson of Toyota’s founder, took over the automaker in 2009. In Toyota’s fiscal year (which ends on March 31) the automaker posted a multi-billion dollar loss due in part of rapid over expansion and costly product introductions.

ABC News, the Los Angeles Times, and other medial outlets have been hammering Toyota relentlessly ever since a runaway Lexus story broke last summer. That fiery accident killed a California highway patrol officer, his wife, daughter, and brother-in-law. Subsequently, consumer safety leader Sean Kane released documentation outlining his own investigation about Toyota acceleration, an issue he has been tracking for more than a decade.

After rolling over and playing dead in response to withering criticism, Toyota began a campaign to bolster its image. The company has been running full page newspaper ads and television commercials centered on its “moving forward” theme. But that tag line has been widely teased by social media enthusiasts who have been doctoring ads to say: moving forward always; even when you apply the brakes.

Photo Credit: Wikipedia

Resource

Safety Research and Strategies, Inc: Toyota Sudden Unintended Acceleration