Toyota Lied?

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By Douglas A. McIntyre Updated Published
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“Toyota Lied” is a good headline and catchy enough to get a reader to look further into a story. In this case catchy is not where it ends.

According to The Wall Street Journal, “A U.S. House committee says Toyota made misleading public comments on recalls. The committee also questioned NHTSA expertise in auto electronics.” This is the first time that Congress has directly accused Toyota of actively hiding the truth about what it knew about defects in some of its vehicles from the public.

The Journal reports that In a letter to Jim Lenz, the head of Toyota’s U.S. sales arm, the House Energy and Commerce Committee said documents “show that Toyota consistently dismissed the possibility that electronic failures could be responsible for incidents of sudden acceleration.”

The statement will, as the details behind it come out, almost certainly further hurt Toyota’s credibility with the public and the chance it will be subject to legal consequences both from Congress and customers who will file liability and other class action suits over recalled models. The rapidity and frequency with which bad news has come out about the vehicles made by the No.1 car company and the firm’s candor have overwhelmed the ability of Toyota’s management to keep pace with the burgeoning disaster.

The accusation guarantees that the testimony of Toyota chief Akio Toyoda before Congress will be contentious and the spectacle of his being verbally beaten by US politicians will make Americans even more likely to turn away from the company’s brands as they buy new and used cars.

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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