Toyota Issuing 'Goodwill' Checks to Dealers

Exclusive-EconomicPolicyJournal.com has learned that Toyota is so concerned about its relations with its dealers, because of the current negative publicity surrounding the recall, that it is informing dealers that each will be issued a "goodwill check" from Toyota.

Toyota will be sending checks to dealers based upon sales volume. The checks will range in size from $7, 500 to $75,000.

Independent Analyst: Toyota Concerns Overblown; NOT LINKED TO ANY ACCIDENTS

Not even most Toyota dealers believe their government would intentionally harass Toyota, but it continues to be a highly suspicious situation, especially when you take into consideration what independent experts are saying..

AFP reports:

David Champion, director of automobile testing for Consumer Reports magazine, said the reaction to the recall was overblown.

"When you look at the statistics we are putting an awful lot of effort on a very small risk," he said.

"There has been something like 2,000 complaints of unintended acceleration in some 20 million Toyota vehicles -- it's almost like trying to find a needle in a haystack."...

he said a congressional investigation was an "overreaction" and noted that the "sticky" pedal problem that caused Toyota to halt production and sales of eight models last month was not linked to any accidents or injuries.

Ray LaHood a Complete Government Hood

Transportation Secretary Ray LaHood has not in his entire life ever received a paycheck from a private sector non-government affiliated enterprise. He joined the government by teaching in public schools and has hop scotched in government and government related jobs ever since then. Bottom line, this guy is a total government hood.

Before becoming Secretary of Transportation, LaHood served for 14 years in the U.S. House of Representatives from the 18th District of Illinois (from 1995-2009). Prior to his election to the House, he served as Chief of Staff to U.S. Congressman Robert Michel, whom he succeeded in representing the 18th District, and as District Administrative Assistant to Congressman Thomas Railsback. He also served in the Illinois State Legislature, according to his Transportation Department bio.

Before his outright political career, Secretary LaHood was a junior high school teacher, having received his degree from Bradley University in Peoria, Illinois. He was also director of the Rock Island County Youth Services Bureau and Chief planner for the Bi-States Metropolitan Planning Commission in Illinois.

LaHood received a 0% rating from the conservative and anti-earmark Club for Growth 2007 RePORK Card. He received an 11% rating from the conservative lobbying group Citizens Against Government Waste for 2007 and holds a lifetime 49% rating from the group.

The man has never earned a private sector penny and now is in a position to harass, and tell Toyota how to run their business. Do you think he would be as forceful if the problem was with General Motors? Not a chance.

LaHood Backtracks On 'Don't Drive Your Toyota' Comment

Secretary Ray LaHood now says he misspoke when telling owners of recalled Toyotas to stop driving then, reports CBS.

Instead, LaHood says take them to dealerships to get them repaired.

LaHood told reporters it was "obviously a misstatement" when he told a House panel earlier Wednesday that he would advise owners not to drive recalled vehicles. The remark came during testimony to the Appropriations subcommittee on transportation.

LaHood Crushes Toyota

Wow, they are really going after Toyota.Transportation chief Ray LaHood says Toyota owners should stop driving cars affected by recall. I would like to see some independent stats on how many cars have actually accelerated because of this problem.

Toyota Sales Fall as a Result of Obama Administration Harassment

Toyota Motor today estimated that it lost about 20,000 sales in the last week of January after it recalled millions of vehicles and temporarily stopped selling some of its most popular models. The recalls were made at the request of the Department of Transportation, and appear highly suspicious by some Toyota execs, given the extremely small number of vehicles that have experienced the gas pedal problem (under 200 out of some 1.8 million).

As a result of the harassment of Toyota, the bailout baby General Motors said its sales increased 14 percent. But even Obama Administration harassment of Toyota couldn't help Chrysler. It's sales decreased 8 percent.

If you want a good deal on a car right now, find a seller of a low mileage slightly used Toyota. Thank Obama and his cronies.

More Harassment of Toyota Scheduled

I pointed out earlier this week that some Toyota execs suspect that the muscled recall of Toyota vehicles by the Transportation Department may be a political operation to slowdown Toyota for the benefit of government bailed out U.S. automakers. It looks like Transportation Secretary LaHood as further harassment planned for Toyota.

Here's the latest via AFP:

Toyota's massive recall of cars and trucks in the United States to fix an accelerator problem only came after pressure from the US government, a top US official said Tuesday.

"Since questions were first raised about possible safety defects, we have been pushing Toyota to take measures to protect consumers," Transportation Secretary Ray LaHood said.

"While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point," he said in a statement.

Department of Transportation officials flew to Japan in December "to remind Toyota management about its legal obligations and followed up with a meeting at DOT headquarters in January to insist that they address the accelerator pedal issue," LaHood said.

"We're not finished with Toyota and are continuing to review possible defects and monitor the implementation of the recalls."

Is Obama Behind the Curious Toyota Recall?

Many Toyota insiders are furious at the Obama Administration. The recall Toyota has issued is the result of pressure from the U.S. Transportation Department. They believe that the pressure is coming not because of a true concern for safety, but an attempt by the Administration to drive sales toward American carmakers including those recently bailed out.

Although Toyota insiders admit that pedal sticking has occurred in a few cars, they point out that it has occurred in fewer than 300 cars, and not something where the Administration shouild have pushed for an immediate full recall, but rather something that could be handled during routine maintenance after a reasonable priced solution was developed.

Toyota insiders tell me that the only solution at this time to correct the "problem" identified by the Transportation Department would cost $2,000 per car. There are 1.8 million vehicles that are subject to the recall.

Transportation Secretary Ray LaHood told WGN Radio in Chicago that "the reason Toyota decided to do the recall and to stop manufacturing was because we asked them to."

LaHood said the department urged the company to act and credited Toyota for going "a step above" by stopping production.

David Strickland, the administrator of the National Highway Traffic Safety Administration, told reporters in Washington that the Transportation Department had been in regular communication with Toyota about the recall. He said the company's decision to stop selling the vehicles was "an aggressive one and one that is the legal and morally correct thing to do."

MSNBC reports:

The timing of the recall and production suspension could not be worse for Toyota. Two years ago, the company beat out General Motors Co. to become the world's largest automaker. Now just weeks into 2010, it is stopping some sales in its biggest market, the U.S., at a time when it desperately needs to sell cars here after reporting its first-ever annual loss last year.

General Motors is offering interest-free loans and other incentives to Toyota owners who may want to get rid of their cars due to fears about faulty gas pedals.

GM General Manager of Retail Sales Steve Hill said Wednesday the company is responding to thousands of inquiries from Toyota owners.

Toyota has its scientists and design engineers working furiously in an attempt to find a cheaper method of fixing the problem, than the $2,000 per car fix. The current fix would cost the car maker $3.6 billion.