Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

March 26, 2014 by · Leave a Comment 

Filed under: Government/Legal , Recalls , Safety , GM , Toyota In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration . Failing to report or attempting to conceal anything when there’s been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers. In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn’t stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota’s handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement . Now, the wire-fraud approach could be used for the expected case between the US government and General Motors , based on the statements of Attorney General Eric Holder , who specifically mentioned “similarly situated companies” when discussing Toyota. In order to make wire fraud stick, US prosecutors would need to prove criminal intent. As explained by Reuters , that means there needs to be evidence that GM actively misled either regulators like NHTSA, or the general public, all in a bid to maintain sales.

US-built Corollas will soon be exported to Latin America, Caribbean

US-built Corollas will soon be exported to Latin America, Caribbean

September 29, 2013 by · Leave a Comment 

Filed under: Budget , Sedan , Plants/Manufacturing , Toyota Toyota has announced plans to export the American-made Corolla south, to 18 countries in Latin America and the Caribbean by 2014. The move follows statements made to The Wall Street Journal by Toyota’s South American leader , Steve St. Angelo , that spoke to Toyota’s resolve in emerging American markets. Toyota is expected to begin export production in April, with initial production of 7,500 Corollas in the first year, courtesy of its Tupelo, Mississippi assembly plant . Years of unpredictable swings in the value of the Japanese yen has seen Toyota push its manufacturing operations in other countries , particularly the US, where its builds ten different models. Scroll down to read the full press release from Toyota. Continue reading US-built Corollas will soon be exported to Latin America, Caribbean US-built Corollas will soon be exported to Latin America, Caribbean originally appeared on Autoblog on Sun, 29 Sep 2013 11:05:00 EST. Please see our terms for use of feeds . Permalink

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