Now Prius Has Accelerator Problem

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By Douglas A. McIntyre Published
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“What can go wrong, will go wrong”–Murphy’s law

A California Highway Patrol officer had to help the driver of a runaway Prius stop his car after its hit 94 miles per hour. The Prius is supposed to have a brake problem, according to Toyota (TM), but not an accelerator problem. Accelerators are the cause of the recalls of eight million of the Japanese company’s cars that are scheduled to be fixed.

The Prius news may overwhelm Toyota’s attempt to minimize accelerator problems by attacking ABC and academic researchers for claiming the bad electronics are to blame for the defect. Toyota would face a greater backlash by customers and the media than it does now, if it is proved that its analysis of the accelerator recall was wrong and that cars with the problem need to be recalled again.

The issue of whether the accelerator problems are caused by electronic and not mechanical problems is also at the heart of Congressional testimony by Toyota CEO Akio Toyoda and other company officials. All have insisted that the company’s cars have no electronic defects and that the firm’s solutions to the problem will end the trouble once and for all.

Toyota has begun to methodically woo back customers. Its new zero percent financing packages and attacks on its critics are at the center of the effort. But, if the Prius has undisclosed problems, Toyota is back to square one in its attempt to repair its reputation.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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