Access To Justice

Last month, Toyota recalled more than 400,000 2010 Prius and other hybrids for braking issues.

Now the question arises: Does the Prius also have an accelerator problem? Acceleration issues with a number of Toyota models led the automaker to recall millions of cars in January.

Recent news reports suggest that there may be acceleration issues with the Prius. USA Today writes that there have been two alleged sudden-acceleration incidents involving the vehicles: one in California, where the highway patrol had to assist the driver in stopping his 2008 Prius, and the other in New York, where a woman ’s 2005 Prius suddenly accelerated and smacked into a stone wall.  The alleged incidents occurred as the automaker insisted that its accelerator problems are mechanical and not electronic, according to 24/7 Wall St.

If you or someone you know has been injured by a Toyota recall model, please contact us.

Potential power steering problems with some of its vehicles have led General Motors (GM) to announce today that it will recall 1.3 million cars in North America, including its popular Chevrolet Cobalt, reports The Wall Street Journal (subscription required).

The voluntary recall involves the 2005-2010 Chevrolet Cobalt; 2007-2010 Pontiac G5; 2005-2006 Pontiac Pursuit sold in Canada, and the 2005-2006 Pontiac G4 sold in Mexico, according to GM.

In January, the National Highway Traffic Safety Administration began an investigation into safety concerns with approximately 905,000 Chevy Cobalts after receiving more than 1,000 complaints of loss of power steering assist and reports of 14 crashes and one injury.

GM says the vehicles being recalled are still safe to drive. “After our in-depth investigation, we found that this is a condition that takes time to develop. It tends to occur in older models out of warranty,” said Jamie Hresko, GM Vice President of Quality, in a statement. “While greater steering effort under 15 mph may be required, if the customer experiences loss of power steering assist, it is important to note that the vehicle can still be safely controlled because the customer can still steer the vehicle.”

GM said both a chime will sound and a ‘Power Steering’ message will be displayed when the issue occurs.

GM’s recall comes as automakers face heightened scrutiny in the wake of the Toyota recall of more than 8 million vehicles worldwide for safety defects in accelerator and brake systems.

As someone who’s been involved in numerous lawsuits related to product liability, I can tell you I have seen it all.  But the Toyota recall is about as close to a perfect storm as it gets.  Case in point: Congress is now holding hearings on the matter.

In true lawyerly fashion, let’s review the facts:

•    Start with a company that has built its brand on quality.

•    Add in the largest recall in the company’s history and one of the ten largest of all time, totaling more than 8 million vehicles, 6 million in the U.S.

•    The recalls relate to everything from faulty gas pedals to brakes, all absolutely critical to safety.

•    According to the National Highway Transportation Safety Administration (NHTSA), 34 deaths allegedly were caused by gas pedal problems.

•    Toyota has allegedly been aware of the potential for problems with accelerators as early as 1999, and the NHTSA had been investigating the issue dating back to that period.

So, if I may paraphrase, it sure seems as if Toyota had some serious problems with its product that could potentially be dangerous, and the company chose to be in denial about it.

Now, once the company issued a recall, how it handled the matter was also a case study in what not to do.

•    To begin with there is evidence that Toyota was basically forced into the January 21 recall by the NHTSA.

•    Toyota CEO Akio Toyoda waited almost two weeks to comment on the recall before apologizing and calling the situation a “crisis”.

• Then, U.S. Secretary of Transportation Ray LaHood tells Toyota drivers not to drive their cars, only to later say he “misspoke”.

•    Toyoda says he won’t testify before a Congressional Committee; in the face of a threatened subpoena, he agrees to testify this week.

This brings us to the consequences of all of this mismanagement and lack of candor and transparency.

•    An estimated 44 class-action lawsuits have been filed under state and federal law by the end of last week.

•    Claims could reach $3.6 billion, based on an average loss of $600 per vehicle.

•    There are dozens of other individual lawsuits alleging that Toyota knew of the risk and did not act swiftly enough to correct the problem. Experts say these cases could cost Toyota billions in settlements.

•    At least one wrongful death lawsuit has been filed for $100 million related to the death of a Texas couple.

Toyota had serious problems with some of its product.  Instead of acknowledging the problems early on and taking the appropriate steps, the company chose a strategy that combined benign neglect with the finger-crossed hope that it could sweep things under the rug.  It is a strategy that too many businesses employ when product defects are in question.

The result: numerous lawsuits that will likely cost the company billions of dollars and damage its brand well into the future.

More importantly, what Toyota did was wrong.  It put people at risk to save a buck.  The company valued its reputation and revenue over the safety of customers.

If you’re one of those customers, you can find more information about the recall at Toyota’s website.

Toyota’s woes continue to mount.

Federal regulators are expected to announce a preliminary investigation today into reports of possible steering problems with the automaker’s popular Corolla model, according to an Associated Press report. The AP writes that the investigation could involve around 500,000 vehicles. Toyota says it is looking into fewer than 100 complaints about the car’s power steering. The company so far has not issued a Corolla recall.

The government probe comes just before a congressional hearing next week into the recent recalls by Toyota, says AP. The company has recalled more than 8 million cars since last November for sticky accelerators, problems with gas pedals and floor mats, and braking issues.

Another day, another automotive recall.

Earlier this week, Toyota recalled more than 400,000 2010 Prius hybrids for braking issues.

Now, the Associated Press reports that Honda Motor Co. has expanded a 2008 safety recall it issued for air bag inflation problems with its 2001 Accord and Civic models. Honda says it is recalling another 378,000 cars because the driver’s side air bag inflator may deploy with too much pressure, which can the inflator to rupture and hurt or kill the driver.

The company says it has received reports of 12 such incidents in the US, including 11 injuries and one death. No incidents have been reported since July 2009, when the company initially expanded its original recall to 440,000 cars. Honda says its most recent expanded recall includes certain 2001 and 2002 Accord, Civic, Odyssey, CR-V and some 2002 Acura TL vehicles.

Some of Toyota’s most popular car and truck models will languish on dealer lots as the automaker suspends sales while it investigates problems with accelerators that stick on certain vehicles, according to an ABC News report.  ABC has broadcast a series of reports examining random acceleration incidents involving Toyota vehicles, including some fatalities.

The Japanese motor company told its dealers to halt sales of the following models:

•    2009-2010 RAV4
•    2009-2010 Corolla
•    2009-2010 Matrix
•    2005-2010 Avalon
•    2010 Highlander
•    2007-2010 Tundra
•    2008-2010 Sequoia
•    2007-2010 Camry

“This action is necessary until a remedy is finalized,” said Group Vice President and Toyota Division General Manager Bob Carter in a press release. “We’re making every effort to address this situation for our customers as quickly as possible.”

Toyota also said in the release it would stop production at three of its US factories and a Canadian facility as it works to remedy the problem with the accelerator pedal assemblies.

Last week, the company recalled 2.3 million vehicles to fix problems with sticky gas pedals that could potentially cause cars to suddenly speed up, resulting in accidents. The eight suspended models were part of that recall.

If you or someone you know has been injured by one of the Toyota recall models, please contact us.

Recalls ruled the news cycle this week as a slew of announcements flowed from the likes of Toyota, Graco, and Conair. From autos to mops to strollers, it was a tough week for consumers.

Manufacturers involved in crib recalls may soon be required by the Consumer Product Safety Commission (CSPC) to provide refunds and other monetary credits to their customers to get them to discard defective cribs, writes Bloomberg.  Consumers have failed to fully respond to offers of free repair kits to fix product flaws, so many defective cribs continue to be used or resold in secondary markets, according to the CSPC. Refunds or credits may provide more of an incentive to get parents to respond, says the story.

Bloomberg noted that more than 7 million cribs have been recalled since 2007. That number rose again this week when about 635,000 cribs were recalled by Dorel Asia after a 6-month-old became entrapped and strangled in a crib when its drop side hardware failed, according to an Associated Press report.  The recall involves 20 models of Dorel Asia cribs with both drop sides and fixed front rails. Some cribs were recalled because a child can suffocate or strangle when the drop side detaches; others because a child can be trapped if a slat is broken or damaged. In one of the largest US crib recalls, the CPSC last November announced a recall of 2.1 million cribs by Stork Craft Manufacturing.

First it was Maclaren. This week it was baby products maker Graco that recalled about 1.5 million strollers after some children had their fingertips amputated after placing their fingers in the vehicle’s hinges. The CPSC said the strollers pose an amputation and laceration hazard to children when opening or closing the canopy.  The recall involves the Passage, Alano and Spree Strollers and Travel Systems. The products were sold at major retailers including Babies R Us, Toys R Us, Kmart, Sears, Target, and Wal-Mart, among others.

Just months after announcing one of the largest automobile recalls in US history, Toyota is facing a second major recall. ABC News reports that the carmaker issued a recall of 2.3 million vehicles this week to address potential problems with gas pedals that stick, causing cars to suddenly accelerate. In November, Toyota recalled 4.2 million cars because accelerators could become stuck under floor mats and cause vehicles to speed up, resulting in crashes and fatalities. The company says the current recall is separate from last fall’s action, in which floor mats and accelerators were replaced and changed, according to ABC News.

Also recalled this week: the Lysol Steam Cleaning Mop by Conair Corp. The CPSC said the mops pose a burn and laceration hazard to users. According to the CPSC, hot water mixed with Lysol can forcefully spurt out and rupture the housing unit.

At Sokolove Law, we’ll be watching how these events play out.