“And the banks–hard to believe in a time when we’re facing a banking crisis that many of the banks created–are still the most powerful lobby on Capitol Hill. And they frankly own the place.” Sen. Dick Durbin (D-Ill.) Spring 2009
Tuesday February 9, 2010 -
February 9th, 2010Toyota Hits the Gas
February 9th, 2010
Ed Wallace
Friday, Feb. 05, 2010
Special to the Star-Telegram
Lee Iacocca, former chairman of Chrysler Corporation, once famously said, "When the crusaders get on their horses, you might as well get out of their way." Then again, Iacocca also did things that corporate executives rarely do when confronted with a serious mistake the company’s made: He ‘fessed up to the error, apologized and quickly made things right with the aggrieved.
For example, in the late eighties it was revealed that Chrysler had disconnected the odometer cables on vehicles used by the company’s executives. Once those vehicles were retired for sale — to a new car dealer and thence to the public — the odometer cables would be reconnected, but the mileage on the car would still show near zero. Disconnecting a vehicle’s odometer violated federal laws; but, while Chrysler’s attorneys were telling Lee not to comment on the issue, Iacocca ignored them and went to the media.
He admitted what had been done, shook his head at the blatant stupidity of it all, and then set about making the customers who had purchased those vehicles whole again. As a result, most who already had respect for the Chrysler chairman gained even more — and the problem quickly went away.
Now it’s Toyota’s turn in the crusaders’ sights. But apparently the Japanese automaker either can’t understand the nature of the crusaders or can’t see how to defuse the problem.
Love Mislaid
The flap has stemmed from reports that, in many Toyota car models, either:
- the gas pedals have stuck, causing unintended acceleration; or
- the floor mats were riding over the foot pedals; or
- the car’s computerized drive-by-wire engine controls had developed a mind of their own — all taking the vehicle out of the driver’s control.
To the media, uncontrollable automobiles have always been appealing stories. It becomes disappointing when the published articles on these potential problems rarely include the opinion of real automotive engineers. Instead we often find data from plaintiffs’ attorneys handling cases against Toyota, or from unnamed "automotive experts" — possibly hired by those same attorneys.
Just to make sure that this pot of fun stays at a boil, throw in a few quotes and statistics from sources claiming to be safety advocates. And the endlessly circulating question in the articles is damning in its premise: If Toyota knew about this problem as long as a decade ago, why did they not do anything about it?
On one day the story is that Toyota’s floor mats are the problem. Next day it’s a gas pedal made by CTS, and yet another day it’s the drive-by-wire acceleration system. One thing is for sure, the idea is being embedded into the public’s mind that someday in the near future, no matter what you do when it happens, you could be the next Toyota statistic. So much for their slogan, "I love what you do for me."
Always the Car’s Fault …
Unintended acceleration in automobiles has been around as a reported problem for as nearly as long as there have been automobiles. The most famous case, because of the resulting publicity, nearly destroyed Audi during the late eighties. Frantic Audi owners lost untold millions of dollars, unloading their automobiles as quickly as they could, thereby taking serious hits in the cars’ wholesale values because nobody would touch a used Audi.
And it was all tragically unnecessary: The National Highway Traffic Safety Administration studied every last car involved and concluded that the cars were neither demonically possessed nor suffering any engineering problem that would cause the driver to be unable to control the car. But when the final report was released that fact was virtually ignored.
This seems like a good time to make a casual observation about automobiles and aircraft. Why is it that when someone has a serious accident in an automobile and blames an uncontrollable car, our first thought is that the problem must be the vehicle — but when an airliner goes down our first thought is pilot error?
Most drivers are amateurs, no matter how long they’ve had a license or been driving. But airline pilots are among the best trained and most often tested professionals in the world. They are not prone to panic, even in the most stressful situation. If the worst happens they will not freeze — their minds and bodies will react as they’ve been trained to.
Whether out of prejudice or pathos, we generally give drivers the benefit of the doubt. It goes against everything we know about human nature and biology, but loss of control always "must be the automobile’s fault."
Except When It’s Demonstrably Not
Today nearly 6 million Toyota vehicles are under recall for some form of action to ensure that a gas pedal does not stick in place, taking away the driver’s control of the car’s acceleration, or problematical floor mats. But NHTSA has conducted at least six investigations and not once found a problem with the gas pedal sticking. Additionally, NHTSA has investigated numerous complaints involving Toyotas’ drive-by-wire engine controls and found zero problems with that electronic system.
So here’s the tally: Six million vehicles driven billions of miles over the past decade have caused fewer than 3,000 complaints (not all of which are legitimate) — and somewhere between nine and 19 fatalities. Statistically, those numbers do not point to an assignable cause, like a recurring engineering problem.
If a serious engineering defect were the cause, then the accident rate would be far higher than is currently being blamed on these reported "issues." Moreover, we would find at least one common defect, and as of today that hasn’t happened either.
Statistically speaking, you’re probably more likely to win the Texas Lottery three times in a row than to have your Toyota unexpectedly accelerate on you.
Wrong Equipment, Improperly Installed
The case that put this issue on the front pages of many national newspapers was that of Mark Saylor. The 19-year veteran of the California Highway Patrol and three other passengers were killed in a runaway Lexus ES 350 on August 28, 2009. This is the case that suggested that a serious problem existed with Toyota floor mats.
And there were problems with that car’s mats — but they weren’t quality or manufacturing problems. Here’s the real story.
The floor mat installed was not made for an ES 350, but for a Lexus RX 350; a much larger floor mat that should never have been put into that vehicle by Bob Baker Lexus, which owned that loaner car. But besides being the wrong size, NHTSA found, the mat was not secured in any way to the clips that Toyota installs to keep its vehicles’ floor mats from creeping up onto either the gas or brake pedal.
According to Toyota, there was even another problem with the oversized floor mat: It was upside down, the carpet side facing the floorboard. This could explain how under heavy foot action it could slide over the important pedals.
NHTSA also noted in its report that the brake pads were scorched and discolored; enough braking pressure had been applied to seriously damage the vehicles’ brakes, but even that hadn’t succeeded in stopping it. The initial sheriff’s report noted that it appeared the floor mat had slipped over the accelerator: possibly due to those oversized and unsecured floor mats, Saylor might have been unknowingly hitting the gas pedal as hard as he was the brake.
Blacked-out Blame: Incomplete Report
Yes, it’s a human tragedy that should not be quickly dismissed or discredited. But why didn’t Saylor immediately put the transmission into neutral to stop his forward movement, or turn off the ignition? We may never know because part five of the NHTSA report is completely redacted (blacked out). At this time the complete story is unavailable.
But somewhere out there is the truth. And it’s caught in a computer memory chip that, like those in other vehicles on the road today, shows exactly what the driver was doing during the last 20 – 30 seconds before an accident.
General Motors and other automakers have long acknowledged that they keep this "get out of court free" chip in their vehicles. Toyota will only concede that such chips enable diagnostic testing of certain parts of the vehicle.
Even when a Toyota Avalon drove into a pond in Southlake, a chip’s memory could answer important questions — like whether the brakes or the gas was being applied at the time of the wreck.
Yet here, both Toyota and the government remain remarkably silent.
We know that NHTSA has investigated these vehicles’ computer systems and brake pedals and as of this writing has found no mechanical or software problems. Which makes it strange that as of this past Tuesday government officials are slamming Toyota for dragging their feet on this matter, when the government admitted they could find no fault with the vehicles and closed their investigations.
But one thing we do know: NHTSA has investigated cases of unintended acceleration for decades in many cars and not once found fault with the vehicle.
Public indecision certainly hasn’t helped Toyota’s case. Maybe they need a Lee Iacocca to tell it like it is — or maybe they’re just heeding his sage advice and getting out of the crusaders’ way.
Note from Ed:
After the article was completed I found that the line, "But NHTSA has conducted at least six investigations and not once found a problem with the gas pedal sticking." was incorrect.
According to Toyota, they discovered the problem with the CTS gas pedals and notified NHTSA in late October 2009. That letter states they would find an engineering solution for the problem.
Toyota’s letter leaves questions as to NHTSA’s statement that Toyota has been dragging their feet on this problem.
Ed Wallace has received the Gerald R. Loeb Award for business journalism, given by the Anderson School of Business at UCLA, and is a member of the American Historical Association. He reviews new cars every Friday morning at 7:15 on Fox Four’s Good Day, frequently contributes articles to BusinessWeek Online and hosts the top-rated talk show, Wheels, 8:00 to 1:00 Saturdays on 570 KLIF. E-mail: wheels570@sbcglobal.net, and access all of Ed’s work at his Web site, www.insideautomotive.com.
http://www.star-telegram.com/ed_wallace/story/1950458.html
Pentagon Pipe Dreams
February 9th, 2010
Volume XV No. 5: February 5, 2010
Pentagon watchers doubled their caffeine intake this week to get through a $700 billion defense budget request along with the Quadrennial Defense Review, a lengthy report outlining future military priorities. They shouldn’t have bothered: Rather than offering a road map for achieving an effective national defense in the shadow of towering debt and deficits, the QDR leads us down a well-worn path of optimistic and unrealistic defense spending.
The QDR was born in 1997 when Congress directed DOD to review long-term plans for force structure, modernization and other military strategies every four years. Though the original law said the QDR must discuss the budget “required to provide sufficient resources” for the QDR’s goals, it was amended in 2007 to ensure the report was “not constrained to comply with the President’s budget submission.” In other words, it exists in its own fiscal la-la land.
This tinkering reflects a longstanding ideological conflict about the role financial constraints should play in military planning. In 1997, a Republican-majority Congress was engaged in battle with Democratic President Bill Clinton over the post-Cold War defense drawdown. “I think there were some who felt we weren’t spending enough on defense,” said DOD Comptroller Robert Hale about the political environment. “They wanted a plan that gave them a sense of requirements without fiscal constraints.” Ten years later, members of that same school of thought worried the QDR process had become too budget-driven and decided to free it from its financial cage.
The result is a document generally dismissed by defense analysts as irrelevant, little more than a government version of a glossy shareholders’ report. The 2010 QDR fails to buck this trend: Though the review disposes with the long-held goal of being able to fight two conventional wars simultaneously, the basic military force structure is left unchanged. In fact, most of the text is devoted to “enhancements” of capabilities such as Special Operations Forces and unmanned aircraft.
Yet few would disagree that miltary planning consists largely of weighing risks against available resources. The QDR admits that “many of these enhancements will be costly” and promises to identify “areas of possible divestment,” but the only tradeoffs referenced are last year’s cuts of weapons such as the F-22 Raptor and this year’s much smaller list of terminations. Important as those cuts were, they’re a drop in the bucket towards the QDR’s goal of “rebalancing” U.S. military goals and resources.
Considering the current economic climate, this is a little like giving someone a risky loan without asking if they have a job. It’s not exactly news that the Defense Department has a planning problem when it comes to money: The Government Accountability Office last year found $300 billion in major weapons cost overruns, and the QDR itself acknowledges that unrealistic cost estimates were a major contributor. They also delay weapons delivery, making bad budgeting dangerous not just to our economy but our national security.
Removing resource constraints from planning exercises like the QDR sets us up to fail. It also deprives the Secretary of Defense of a sharp prod he could use to herd profligate service heads and lawmakers. Future QDRs should explicitly link strategic goals with fiscal projections, even if that means amending the law again. Disconnecting military planning from fiscal realities is not just bad economics—its bad strategy.
Going on at Taxpayer.net This Week
TCS Letter in Opposition to Potentially Costly Water Bill
(February 2, 2010; 5:15 pm) Ongoing TCS Analysis of the FY2011 Budget
2010 Defense Budget Winners and Losers
Joint Letter Urging Administration Not to Increase Risky Loan Guarantee Program
Top Nuclear Loan Guarantee Contenders in Financial Shambles
TCS in the News
TCS was cited in dozens of stories this past week. Check them all out in the Headlines About TCS section of our redesigned website.
Current Action Items
Stop Billions in Treasury-Backed Loan Guarantees for Risky Energy Projects
Stop Subsidizing Wealthy Companies
Not Saving Salmon Could Cost Taxpayers Billions
Notable Quote
"Using CBO’s methodology, the most effective way to create jobs is to load up a C-17 cargo plane with $50 bills and have it fly over the country pushing money out the door."
-Senator Tom Harkin (D-IA) on proposals for a jobs creation bill, The Hill
From: the weekly wastebasket at www.taxpayer.net
Congressman Paul’s Texas Straight Talk
February 9th, 2010
Monday, February 8, 2010
More Spending is Always the Answer
“Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend. It is not likely to be very long before this new ceiling is met and the government is back on the brink between default and borrowing us further into oblivion. Congressional leaders and the administration acknowledge that the debt limit will need to be increased again next year. They are crossing their fingers that the forecasts are correct and they will not need another increase sooner, even before the 2010 midterm elections…”
Click here for full article:
Annual Threat Assessment of the US Intelligence Community for the Senate Select Committee on Intelligence
February 9th, 2010Annual Threat Assessment of the US Intelligence Community for the Senate Select Committee on Intelligence, Dennis C. Blair, Director of National Intelligence, February 2, 2010
•"The national security of the United States, our economic prosperity, and the daily functioning of our government are dependent on a dynamic public and private information infrastructure, which includes telecommunications, computer networks and systems, and the information residing within. This critical infrastructure is severely threatened. This cyber domain is exponentially expanding our ability to create and share knowledge, but it is also enabling those who would steal, corrupt, harm or destroy the public and private assets vital to our national interests. The recent intrusions reported by Google are a stark reminder of the importance of these cyber assets, and a wake-up call to those who have not taken this problem seriously. Companies who promptly report cyber intrusions to government authorities greatly help us to understand and address the range of cyber threats that face us all. I am here today to stress that, acting independently, neither the US Government nor the private sector can fully control or protect the country’s information infrastructure. Yet, with increased national attention and investment in cyber security initiatives, I am confident the United States can implement measures to mitigate this negative situation."
http://intelligence.senate.gov/100202/blair.pdf
Borowitz Report – Toyota’s new slogan
February 9th, 2010
February 8, 2010
Toyota Unveils New Slogan: “Drive a Toyota. You’ll Never Stop.”
Hopes to Reverse Public Relations Setbacks
TOKYO (The Borowitz Report) – Hoping to reverse a series of public relations setbacks, Toyota today unveiled a new slogan, “Drive a Toyota. You’ll Never Stop.”
Company spokesman Hiroshi Kyosuke said that the slogan was chosen after the company considered several others, including “Toyota Puts the Pedal to the Metal. And Keeps it There.”
Mr. Kyosuke said that the company considered, but then abandoned, the slogan, “Toyota. The Last Car You’ll Ever Drive.”
For real-time fake news updates, follow Andy Borowitz on Twitter. twitter.com/BorowitzReport
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May 11, 2010 at 07:00 PM
Washington, DC!
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