Parker Waichman LLP

Toyota Saved Millions Convincing NHTSA to Limit Scope of 2007 Recall

Toyota executives were apparently quite pleased with the outcome of a limited recall of 2007 Toyota Camry and Lexus ES models for sudden acceleration. According to The New York Times, documents the automaker turned over to the House Committee on Oversight and Government Reform show that Toyota estimated it saved $100 million by negotiating with […]

Toyota executives were apparently quite pleased with the outcome of a limited recall of 2007 Toyota Camry and Lexus ES models for sudden acceleration. According to The New York Times, documents the automaker turned over to the House Committee on Oversight and Government Reform show that Toyota estimated it saved $100 million by negotiating with U.S. regulators to limit the scope of the recall.

Since September, Toyota has recalled nearly 8 million vehicles worldwide for issues involving unintended acceleration and faulty brakes. The recalls have seriously injured Toyota’s long-standing reputation for quality and reliability. Toyota has also been strongly criticized for what many see as a slow response to the unintended acceleration problem.

According to The New York Times report, Toyota made the $100 million savings estimate for the 2007 Camry and Lexus ES recall in a confidential presentation from July 2009 listing legislative and regulatory “wins” for the company. According to the document, Toyota officials said the National Highway Traffic Safety Administration (NHTSA) had become “more sensitive to public/Congressional criticism, resulting in more investigations and more forced recalls.” But the company said it had achieved “favorable safety outcomes” and “secured safety rulemaking favorable to Toyota.”

Specific to the 2007 Camry and Lexus ES recall, Toyota said it had “negotiated an equipment recall” without a finding of a defect, saving the company $100 million, the Times said. Instead of fixing the cars, Toyota only recalled 55,000 floor mats which it said could become lodged under the accelerator pedal.

The House Committee on Oversight and Government Reform, which obtained the documents detailed by the Times through a subpoena, is one of three congressional committees that have scheduled hearings into Toyota’s recalls and safety problems. Toyota president Akio Toyoda is set to testify before the committee on Friday.

Toyota is also facing other investigations. According to Reuters, Toyota said today that it had received a federal grand jury subpoena for documents related to unintended acceleration and braking that led to the recall. The subpoena came from the attorney’s office for the southern district of New York on February 8.

Reuters is also reporting that Toyota has been asked by the U.S. Securities and Exchange Commission (SEC) for documents related to unintended acceleration of Toyota vehicles. U.S. unit Toyota Motor Sales U.S.A. separately received a subpoena for related documents, including about the company’s disclosure policies, Reuters said. Both the request and the subpoena from the Los Angeles office of the SEC.

Finally, the Detroit News has obtained a series of e-mails between State Farm and NHTSA officials from 2004 that show the government had already been probing the Toyota unintended acceleration issue. In 2004, State Farm notified the government of a spike in unintended acceleration complaints involving Toyota vehicles.

The e-mails show NHTSA was appreciative of the “timely” submissions by the insurer. The records also show that NHTSA continued working with State Farm in 2009 as it further probed the issue of unintended acceleration in Toyota vehicles, the Detroit News said. However, the emails obtained by the Detroit News do not shed any new light on why the NHTSA ended its investigation in July 2004 without requiring any action by Toyota.

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
About 7 years ago, my sister was in a car accident and was very pleased with the way the firm handled her case. Unforuntately, I was in a car accident and she recommended that I call Parker Waichman. I could not be more happy with the way the case was handled and the outcome. The staff is also very friendly, which was refreshing.
Paul Schaeffer
11 years ago
5 Star Reviews 150
I had a friend who recommended Parker Waichman and I have to say I am so thankful that he suggested them. I found them to be very professional. Whenever I had an issue, I always spoke to Tina Morace. She was always prompt in returning my calls, and never to busy to answer any of my questions. She played an integral part in making the whole process stress free for me. Tina and the firm never kept me in the dark on what was going on. I will definitely use them again, and I highly recommend them.
Walter Sherrod
4 months ago
5 Star Reviews 150
I want to give a heartfelt thank you to Ms. Benita Rollis for the exemplary manner in which my case was handled from the inception to the end. Ms. Rollis was compassionate, friendly, understanding, professional, accurate, informative and patient. She took the time and effort to explain the process, timeline, the various documents involved and how to go about obtaining certain forms. She was definitely on point. If I had to go this route again, I would hands down, choose and highly recommend Ms. Rollis because she is highly competent in getting the job done. She is a definite asset to Parker Waichman LLP. On behalf of myself and my family we thank you for a job well done. Be well and be blessed. Margarita R. Mitchell
Margarita Mitchell
3 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038