Tuesday, February 16, 2010

Gov't: 34 deaths alleged in Toyotas since 2000

WASHINGTON – Complaints of deaths connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the alleged death toll reaching 34 since 2000, according to new consumer data gathered by the government.

Complaints to a database maintained by the National Highway Traffic Safety Administration about the popular Toyota Prius hybrid grew by nearly 1,000 in just over a week.

On Monday, Transportation Department spokeswoman Olivia Alair said NHTSA is quickly gathering information to help guide the government's examination of sudden acceleration, the Prius braking system and other safety issues.

Toyota Motor Corp. has recalled 8.5 million vehicles globally during the past four months because of problems with gas pedals, floor mats and brakes, threatening the safety and quality reputation of the world's No. 1 automaker. The government typically receives a surge in complaints following a recall. None has yet been verified.

The new complaints reflect the heightened awareness of the massive recalls among the public and underscore a flurry of lawsuits on behalf of drivers alleging deaths and injuries in Toyota crashes. Three congressional hearings are planned on the Toyota recalls.

In the past three weeks, consumers have told the government about nine crashes involving 13 alleged deaths between 2005 and 2010 due to accelerator problems, according to a NHTSA database. The latest complaints come on top of information from consumers alleging 21 deaths from 2000 to the end of last year.

The database also shows that new complaints skyrocketed over the 2010 Prius gas-electric hybrid, which was recalled last week to replace braking software.

When NHTSA opened its investigation of Prius on Feb. 3, the government had received 124 consumer complaints. Through Feb. 11, the government had a total of 1,120 complaints alleging 34 crashes, six injuries and no deaths.

The government has renewed an investigation into potential electromagnetic problems in vehicles built by Toyota and other manufacturers. Consumer groups have pointed to potential electrical problems while the company has said recalls to fix sticking gas pedals or accelerators that can become jammed will address the problem.

Toyota spokeswoman Martha Voss said the company takes "all customer reports seriously and will, of course, look into new claims." Toyota was taking steps to improve quality control and investigate customer complaints more aggressively, Voss said.

Testing by Toyota, NHTSA and Exponent, an outside consulting firm hired by Toyota, has found no evidence of problems with Toyota's electronics, said Toyota Vice President Bob Carter at the National Automobile Dealers Association convention in Orlando, Fla.

"There is no problem with the electronic throttle system in Toyotas," Carter said Monday. "There's not anything that can even remotely lead you in that direction." Carter said Exponent was told to tear the components apart to try to find anything wrong and initial tests could find nothing.

Carter said Toyota has repaired about 500,000 of the 2.3 million vehicles recalled over a potentially sticky gas pedal.

Toyota has received many complaints over vehicle speed control in the 2009 and 2008 model years, according to an Associated Press analysis of government data.

In 2009, Toyota received the most complaints that year — a total of 130 for Toyota, Lexus and Scion vehicles. Ford and its Mercury brand received the second-highest with 14, followed by General Motors and Honda vehicles with 9.

Among Toyota vehicles in the 2009 model year, the Camry led the list of models with 52 complaints, followed by Corolla (17), Tacoma (16) and Prius (13). The AP found eight of the top 10 vehicles with complaints over vehicle speed control were manufactured by Toyota.

In the 2008 model year, Toyota vehicles received 176 complaints of vehicle speed control, followed by Ford with 44 and Chrysler with 25. In that year, Prius had 31 complaints, followed by Tacoma with 28 and Camry with 25.

Since Jan. 27, NHTSA has processed 686 complaints from consumers about problems related to "vehicle speed control" on cars and trucks manufactured by Toyota, nearly all of them submitted through NHTSA's Web site or by e-mail.

Regarding the AP analysis, Alair, the Transportation Department spokeswoman, noted that Toyota had a large market share of vehicles in the U.S. but said she could not comment on the AP figures without further analysis.

Friday, February 12, 2010

Your Cell Phone Company's Dirty Little Secret

Mobile phone companies have been lauded for slashing the cost of unlimited voice plans, but many wireless customers' monthly bills are actually going to get a bit more expensive.

Last month, both Verizon and AT&T lowered their unlimited voice plans by $30 to $70 per month. Sprint recently unveiled a plan that allows unlimited calls to any mobile device for $60 per month. That brought the three biggest mobile carriers' prices closer to rival T-Mobile, which offers a $60 per month unlimited plan, and in line with a slew of low-cost carriers that offer similar plans for about $40 per month.

But as the wireless giants go around touting their lower voice prices, data plan costs have been quietly moving higher for some non-smartphone customers.

It began with Verizon Wireless. Last month, that company began requiring certain non-smartphone customers to subscribe to a data plan that costs at least $10 per month. Mobile experts believe Verizon's move marks the first step in a larger trend to make up for carriers' lost revenue from voice.

"There's a big shift going on among mobile companies, in which there is a price reduction on voice and an increased emphasis on selling and requiring data services," said Dan Hays, partner at PRTM. "It is like a dirty little secret."


The New Smartphones


Smartphone owners are used to paying for an unlimited data plan with T-Mobile, Verizon and AT&T customers doling out the most: roughly $30 per month. Sprint offers a slightly different service, but also requires smartphone users to subscribe to an unlimited plan.

But non-smartphone customers aren't used to high-priced data plans. Less expensive, limited data plans have been largely available but not widely adopted. Verizon said it began to require new customers who purchase so-called "3G multimedia" phones to subscribe to a data plan in part so that they could get the full functionality out of their phones.

"Many customers didn't understand they could use the Web on their phones," said Brenda Raney, spokeswoman for Verizon Wireless. "We hope that people who were reluctant to use data plans because they didn't know it was affordable will use them now."

Previously, Verizon offered non-smartphone customers two data plans: $10 for up to 25 megabytes or $20 for up to 75 megabytes. In January, Verizon eliminated the $20 plan and replaced it with a $30 unlimited plan that was previously available only to smartphone users.

3G multimedia phones include a wide array of phones, ranging from the LG enV Touch, which has a touch screen and a QWERTY keyboard, to the Motorola Entice, essentially a standard flip phone that can access the mobile Web.

Other carriers are planning similar data requirements for their non-smartphone devices in the next several months, analysts say.

"Non-smartphone users aren't using as much data as smartphone users, but they're getting closer," said Ramon Lamas, mobile device analyst with IDC. "Carriers see them as a breeding ground for increased data usage."


Data Overload Vs. Revenue


It's not just about increasing revenue, say analysts. Carriers are banking on the consumer-friendly aspect: phones are more fun and useful with the Internet.

"The 'naked aggression' reason is to boost revenue to offset declining voice revenue," said Charles Golvin, mobile analyst with Forrester Research. "But carriers also realize consumers won't get the enjoyment out of their devices without data."

But analysts caution that carriers need to be careful of data overload. 3G data networks are already in high demand from smartphone users, and smartphone usage was up 40% in 2009, according to an IDC study. AT&T has had well-documented 3G network troubles in New York and San Francisco due to the success of the data-hogging iPhone.

"Carriers are getting people to move to data, but they're doing it cautiously," said Lamas. "Rather than have everyone move to data immediately, they're testing the waters and taking the people who can weather higher prices first."

"Look how much revenue AT&T is getting from the iPhone," said Golvin. "It's easy for Verizon to make hay of AT&T's problems, but it's a problem that Verizon wishes it had."

Relatively few complain about Toyota

NEW YORK (CNNMoney.com) -- Despite a torrent of high-profile recalls that have tarnished Toyota's once stellar reputation, a study published Wednesday reveals that the automaker actually gets fewer customer complaints per car than the majority of its competitors.

Edmunds.com reviewed more than 200,000 complaints filed with the National Highway Traffic Safety Administration (NHTSA) over the last decade and found that Toyota ranked 17th among the top 20 automakers in the overall number of complaints per vehicle sold.

The results come amid a series of recalls totaling more than 8.1 million Toyotas worldwide, including 400,000 of the popular 2010 Prius hybrid for problems associated with sticking brake pedals, software glitches and faulty floormats.

The study was based on the percentage of complaints each automaker received versus the total number of vehicles they sold in the United States between 2001 and 2010.

As a result, British carmaker Land Rover had the highest proportion of complaints relative to the number of cars it sold. The company received 0.6% of the total complaints in the database, while its sales amounted to only 0.1% of all new cars sold in the United States.

Meanwhile, Toyota had 9.1% of all the complaints in the database. But the company was number 17 on the list because its sales made up 13.5% of the U.S. market.

According to the study, Toyota had fewer complaints than its American rivals. Ford was number 10 on the list, while General Motors came in at number 11.

The only automakers to receive fewer complaints than Toyota were Mercedes-Benz, Porsche and the Mercedes-made Smart Car.

Among the other automakers that ranked high on the list were Suzuki and Isuzu, which came in at numbers 2 and 3 respectively. German automaker Volkswagen came in at number 4.

The complaints lodged against Toyota ranged from minor problems with lighting to more serious issues such as sudden acceleration and difficulty steering. But the study did not rate the reported incidences for severity.

Edmunds.com said that it found some unreliable reports in the database, including one complaint indicating that 99 people had died in one vehicle as a result of an accident. It also said that about 10% of the complaints appeared to be duplicates.

Quality control: Not just Toyota's problem
While the issues raised by Toyota's recent recalls shouldn't be overlooked, quality control concerns are apparent across the entire automobile industry, said Jeremy Anwyl, Edmunds.com chief executive.

"A broader view shows that consumer complaints reflect an industry issue, not just a Toyota issue," said Anwyl. "It is no longer an option for car companies to dismiss consumer complaints, even if the event is difficult to replicate or diagnose."

Some automakers assume that customer complaints are the result of driver error and not necessarily a reflection of design problems, said Jeannine Fallon, an Edmunds.com analyst.

"It depends on the culture of the car company," she said. "But it's clear now that Toyota has not had very many conversations with NHTSA."

Wednesday, February 3, 2010

Prius brakes questioned; Toyota probe expands

WASHINGTON – Americans should park their recalled Toyotas unless driving to dealers for accelerator repairs, Transportation Secretary Ray LaHood warned Wednesday — then quickly took it back — as skepticism of company fixes grew and the government's probe expanded to other models in the U.S. and Japan. Questions now are being raised about the brakes on Toyota's marquee Prius hybrid.

The Prius was not part of the most recent recall, but Japan's transport ministry ordered the company to investigate complaints of brake problems with the hybrid. LaHood said his department, too, was looking into brake problems. About 100 complaints over Prius brakes have been filed in the U.S. and Japan.

Harried dealers began receiving parts to repair defective gas pedals in millions of vehicles and said they'd be extending their hours deep into the night to try and catch up. Toyota said that would solve the problem — which it said was extremely rare — of cars unaccountably accelerating.

At a congressional hearing, LaHood said his advice to an owner of a recalled Toyota would be to "stop driving it. Take it to a Toyota dealer because they believe they have a fix for it." His comments prompted new questions and rattled Toyota stockholders, causing shares to plunge 8 percent before they recovered, declining 6 percent for the day.

LaHood later told reporters, "What I said in there was obviously a misstatement. What I meant to say ... was if you own one of these cars or if you're in doubt, take it to the dealer and they're going to fix it."

Adding to Toyota's woes, LaHood said his department had received new complaints about electronics and would undertake a broad review, looking beyond Toyota vehicles, into whether automobile engines could be disrupted by electromagnetic interference caused by power lines or other sources. Toyota has said it investigated for electronic problems and failed to find a single case pointing that direction.

Toyota Motor Corp., in a statement, said if owners were experiencing problems with the accelerator pedal "please contact your dealer without delay. If you are not experiencing any issues with your pedal, we are confident that your vehicle is safe to drive."

But the damage was done for many drivers.

Meredyth Waterman, who bought a 2010 Toyota Corolla in December, said the alarming statements from Washington confused her and she planned to wait until her dealer told her to come get the fix to bring her car in for repairs.

"If it is largely believed to be a rare instance, why would he tell people to stop driving their cars?" asked Waterman, of Burrillville, R.I. "It was an irresponsible thing to say."

The confusion came as the world's No. 1 automaker dealt with fresh probes in the U.S. and Japan over the Prius, the best-selling gas-electric hybrid, and growing interest from congressional and other government investigators. Toyota has shut down several new vehicle assembly lines and is rushing parts to dealers to fix problems with the accelerators, trying to preserve a reputation of building safe, durable vehicles.

Since October, Toyota first recalled about 5 million vehicles over problems with floor mats trapping gas pedals and now, in a recall announced Jan. 21, some 2.3 million vehicles amid concerns that gas pedals could become stuck or slow to return to the idle position. The latest recall involves 2009-10 RAV4 crossovers, 2009-10 Corollas, 2009-10 Matrix hatchbacks, 2005-10 Avalons, 2007-10 Camrys, 2010 Highlander crossovers, 2007-10 Tundra pickups and 2008-10 Sequoia SUVs.

Lawmakers who are now digging into the recalls said they would also look into the Prius. Rep. Bart Stupak, chairman of the House Energy and Commerce investigative subcommittee, said his panel would request a briefing from Toyota officials about the hybrid.

New York Rep. Edolphus Towns, chairman of the House Oversight and Government Reform Committee, sought more information about the acceleration issue from Yoshi Inaba, chairman and CEO of Toyota Motor North America and asked the question on the minds of Toyota owners: "Is it safe to drive the Toyota models that have been recalled?"

Towns' committee, which is planning a Feb. 10 hearing, also wants more details on how Toyota handled complaints about pedal entrapment, reports of stuck accelerators and electrical problems. Other panels in the House and Senate also are planning hearings.

Many consumer groups have questioned whether Toyota's fix will work and have asserted it could be connected to problems with the electronic throttle control systems.

Joan Claybrook, who formerly lead Public Citizen, a watchdog group, noted that Toyota told owners during last year's recall to remove floor mats to keep the accelerator pedal from becoming jammed. "I don't think that's what the issue is. I think it has to be electronic when it slam dunks and takes off and goes 120 miles an hour," Claybrook said.

The National Highway Traffic Safety Administration, meanwhile, asked CTS, the Indiana company that made the pedals behind Toyota's latest recall, if the same problem could exist for other automakers. CTS makes pedals for Honda, Nissan and a small number of Ford vehicles in China, but the auto supplier has said the issues are limited to Toyota alone.

LaHood, who plans to speak with Toyota President Akio Toyoda about the recalls, said the government is considering civil penalties against the carmaker. But he also said that it appeared "Toyota is making an all-out effort to do all that they can to fix these cars."

The Obama administration has been forced to backtrack on several statements during its first year, though LaHood's warning was particularly striking.

Last year, when LaHood suggested the administration consider taxing motorists based on how many miles they drive instead of how much gasoline they buy, his comments were quickly rejected by the White House. Vice President Joe Biden triggered a day of backtracking after publicly swearing off trains and planes because of swine flu worries.

LaHood's comments irked many dealers, who have been fielding calls from nervous customers for days. Most dealers are just getting the parts, a steel shim a couple of millimeters thick, to be inserted in the pedal assembly to address potential friction that could cause the pedal to stick.

The secretary "has the best of intentions, but unfortunately we can't fix 100 cars at the same time," said Adam Lee, head of Lee Auto Malls and owner of a Toyota dealership in Topsham, Maine. "I'm sure he has the best of intentions but it may not be very constructive for us."

Earl Stewart, who owns a Toyota dealership in North Palm Beach, Fla., said LaHood's comments "could instill panic." Stewart was expecting to begin making repairs — at half an hour per vehicle — later Wednesday.

"We're leaving our service department open 'til the last customer tonight," he said. "After Ray LaHood's statement, it might be all night."