Drivers did not engage their brakes in virtually all of the “sudden acceleration” cases with Toyota cars, according to the U.S. Department of Transportation. While falling short of exonerating Toyota, the results suggest that that the congressional show-trials that occurred in February were – surprise – both preemptive and a political stunt.
Typically I would suggest that this is simply a case of Representatives attempting to score political points. But, in a time when the government holds a major stake in GM and Chrysler, it appears that the government has more nefarious motives. It makes a lot of sense to demonize the competition if you want to boost GM and Chrysler’s sales. The government is in a unique position where they can abuse their powers to grow their investment.
Just another reason why government should stay out of business – private companies are at a severe disadvantage when competing against government owned companies.
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Pingback: Charles
Interesting. Can’t say I’m surprised though.
Pingback: Sammy
Pingback: Larry
protectionism doesnt solve anything larry, it’s a stupid anti-free trade policy that damages the economy even further.
I agree obviously that government should stay out of business, but I’m not sure how much this proves that point. Ari, can you address Charles’s question? Inquiring minds want to know!
Not Ari on this one, but I will bite.
As I mentioned in the post, the congressional hearings on Toyota in February were filled with political posturing and attacks.
This video (AP) features one of the so-called victims and two so-called experts who claim findings which today have been all but disproven. However, they were relayed on every national news station in the United States due to the congressional hearing: http://www.youtube.com/watch?v=eFlI6kuOnwM&feature=related
By bringing Rhonda Smith out for all of the media to photograph, the government created enormous fear. All of this happened, of course, before the facts were known.
This video (Reuters) features a few short samples of the grilling that Akio Toyoda received from congress: http://www.youtube.com/watch?v=L3hWiWGZQUM
The Department of Transportation was doing its job when it tested the vehicles and reported that virtually all of the ‘sudden acceleration’ cases resulted from the drivers hitting the gas instead of the breaks.
The government, on the other hand, was demonizing Toyota when it dragged Akio Toyoda into a congressional hearing where politicians, who know nothing about the mechanics of a car, lectured Toyota on safety. They used Rhonda Smith as a pawn to create fear and anger in the American public, before the Department of Transportation concluded its tests.
So the government blamed Toyota until the facts showed that they were absolutely wrong. However, the government attacks had already cost Toyota millions (if not billions) through lost sales by forcing a PR campaign.
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