Ray LaHood Has Tainted The Public’s Trust in NHTSA
Jason Lancaster | Feb 05, 2010 | Comments 26
Two days ago, U.S. Secretary of Transportation Ray LaHood made a startling and ridiculous statement when asked what Toyota vehicle owners should do about Toyota’s sticking pedal recall:
“stop driving it. Take it to a Toyota dealer because they believe they have a fix for it.”
A few hours after making this statement, LaHood was quick to retract saying “What I said in there was obviously a misstatement. What I meant to say or what I thought 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.” Unfortunately, much of the damage from LaHood’s statement had already been done by the time he took it back. The Wall Street Journal reports that Toyota’s stock price fell 5.2% as a direct result of LaHood’s “stop driving” comment. In real money, that’s about $4 billion dollars in market value lost in the span of a few hours…
But LaHood’s comments didn’t just hurt Toyota’s stock price – what rational person wouldn’t be a little concerned after hearing that the government said “stop driving” Toyotas and then quickly retracted? Whatever side of the fence you’re on, we should expect more from the person in charge of NHTSA.
Ray LaHood's comments have tainted the public's perception of NHTSA
The question is, how can we rely upon government officials to be objective about vehicle safety when our government owns a substantial percentage of two major automakers?
Don’t get me wrong – Toyota is NOT an innocent victim here. Perhaps if Toyota’s management team wasn’t so inept and arrogant, they would have taken this issue more seriously when it was raised months ago. Perhaps Toyota wouldn’t be in the boat they’re in today if they hadn’t tried to grow so big so quickly.
Also, for the record, I do not believe that NHTSA is biased against Toyota. While it’s certainly possible LaHood’s comments were a calculated, sinister move to undermine Toyota, there’s a difference between a cheap shot delivered by a politician and a NHTSA conspiracy to undermine Toyota’s safety record. Toyota created this problem – NHTSA didn’t conspire to invent or promote it.
Still, despite Toyota’s mistake and LaHood’s gaff, the American people are left with a problem: How can we trust our government to ensure our safety when it owns a stake in two major auto manufacturers?
Some might say this concern is an over-reaction. If that’s true, why was the White House so quick to clarify LaHood’s comments stating:
The administration’s involvement with GM, “of course, would not have any impact on this administration’s commitment to making sure that Americans are kept safe on our roads,”
Also consider LaHood’s comments about GM and Chrysler at the Detroit Auto Show a few weeks ago:
Mr. LaHood…described the Chevrolet Volt plug-in hybrid as the kind of green car Americans are looking for. In response to a question about Chrysler’s future, Mr. LaHood described that automaker as being “on the cutting edge of developing products that people will want.”
“As innovative and creative as I’ve ever seen” was Mr. LaHood’s summary of Chrysler’s condition.
LaHood made more comments at the Detroit show – Automobile magazine and Automotive News report:
Having bailed out Chrysler and General Motors last year following the companies’ bankruptcy, the government has a vested interest in the Detroit automakers. The Obama administration expressed its “commitment and leadership to get the industry moving again for jobs.”
Are LaHood’s comments an attempt to get GM and Chrysler “moving again for jobs?” Perhaps. Or perhaps they’re just foolish comments from a harried and over-worked public figure.
Whatever LaHood meant to say really isn’t important any more. The fact is, LaHood has tarnished the reputation of NHTSA and highlighted a major conflict of interest: As long as the US government owns a stake in major auto manufacturers, the public will forever question the motives of government officials.
Special thanks to the Cato Institute for inspiring this post.
What do yo think – should we trust NHTSA to be objective as long as the government owns a portion GM and Chrysler?
Filed Under: Auto News
Here is an interesting editorial from the Washington Examiner….
http://www.washingtonexaminer......60857.html
No, we should not trust govt. entities of any kind. They are all crooks if you ask me. The last statement hits it right on the head about the govt. having a vested interest in GM and Chrysler since they bailed them out. Vested meaning they will do anything they can to help those 2 make a profit for a change so the govt. (or should I say the public) get reimbursed for the billions sunk into those 2 companies. I understand the reason they bailed those 2 huge companies out, but still do not agree with it. Competition is good for toyota and ford and without gm and chrysler, toyota and ford would rule the market and become even crappier quality and higher pricing than they already are. Now, we need toyota to get their act together and get back to building a reliable vehicle with less cheap, crappy parts. The new 09-2010 corolla comes to mind of which I have along with my 2010 tundra. Fricking recalls and TSB’s are ticking me off.
BobG – Great link – I like the “Chicago way” of automotive politics. There are some connections between LaHood and organized labor, but the REAL connection is between Rahm and the UAW. Rahm’s a HUGE friend of organized labor, and I’m wondering if he’s loading LaHood’s lip…but can’t prove it, so not going to publish it.
mk – I hear ya – and they recalls are wearing me out too.
If anyone thinks LaHood’s comments are just a fool mispeaking, I have a bridge to sell them in Brooklyn. Come on people, they own the competition. Which is exactly why these socialist need to have no part of our economy.
But don’t worry, you health care will be in good hands.
Why are fingers being point and blame being shifted. Did Lahood design the assemblies? Did Lahood have anything to do with Toyota? What is the purpose of the NHTSA? Isn’t it to ensure safety. So with that being said isn’t Lahood comment just that, ensuring safety by telling the public to take it to the dealers and not to drive them? If it is to save one life isn’t it worth it? It was a NHSTA cover thy ass statement, as they are there for safety wouldn’t you expect somthing along that line? If he didn’t everyone would say he is not doing his job! So what do you want? Toyoda offered his appoligies stating “I offer my apoligies for the worries” and “Many customers are wondering whether their cars are ok”. Don’t you think MAYBE he sould have stated somthing about the vehicles are safe?
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Joe Smith, if you don’t like Toyota and are so jealous of the so-called goverment owned competition trade it in. It appears their quality is well beyond the standards of Toyota.
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So in closing stop the blame shifting. There is only one person to blame for all this and his name is Akio Toyoda, the head guy at Toyota.
Wow…….I am going to need to deprive my brain of oxygen so I can reply to the low standards that last comment went to. Wait….still holding breath………room spinning. OK. IF Lahood(lum) had the best interest of the American public in mind…would he not then also recommend everyone with a Ford to stop driving them? An airbag to the face at 70 mph is INFINITELY more dangerous than a stuck gas pedal, WHICH the odds of happening on its own is next to nothing. which is higher than it should be, I will grant that. IF we are going to subscribe to the moron code of safety we need to remove all Ford vehicles off the road…due to exploding and flaming odds and ends. MOst toyotas off the road…due to pedal and rusting. All Chryslers…..one word: French….this has mass death toll written all over it. Most GM’s…what is going to fall off or rust off today? All Nissans…might die at the stop light and not restart. Some Hondas….FLAMING ARMREST OF DOOOOOM! and any car that does not have a TPMS incase the tires go low. Blow outs. also All Motorcycles HAVE to be banned as well as pudding pops and jello. Bill Cosby could make you laugh and you might wreck.
The toyota issue was the supplier was screwing up. PERIOD. Toyota, who neither owns nor makes the piece, appologized. Do we need to fly my Toyoda to the US and exicute him on national TV? WOULD THAT BE GOOD ENOUGH?
Kate….. where to start…. Well Mr. Lahood statement about Toyota owners should park them until fixed. Well Kate has this been ever stated to other recalls out there? Most recalls are safety intended. I could be struck by lightning twice before my pedal sticks. I have an 07 Crewmax which falls under this recall. I have over 78,000 miles on it. If I had a sticking pedal it would have done it by now. So just because it may have happen to a few I’m suppose to park my truck? I don’t think so. What Mr. Lahood did was the same that Mayor Neagan in New Orleans did for Katrina. They failed the public. You fail to see so many coincedences that have been happening here. Tell me if this isn’t a coincedence that the same day Toyota comes out with a recall, General Motors comes out with a $1,000 rebate on Toyota’s (Which was a failure also)? Who owns GM? Yes the Govt. Isn’t NHTSA a govt agency? Didn’t our administration state when they bailed out GM “We will do whatever it takes to bring back GM to being sucessful”. As soon as Ray Lahood put out this statement which he knew will kill Toyota he waits and then retracts it. In-between that time why did our administration come out with basically an apology for the statement? You don’t see that this is a conflict of intrest? By Lahood coming out with that statement he did what he wanted done and that was to bring down Toyota. You saw the numbers where Toyota went down and GM went up. You still want to play that game? Tell me why that cadillac last year had the runaway pedal possibly the same company that makes it, and Ford has the same brake issues with their 4 Hybrid vehicles (Milan, Fusion, Mariner, Escape) as the Prius? Who’s getting hammered here? Are you seeing a picture here? I don’t need Mr. Toyoda to state my truck is safe. Since 07 my truck had the highest ratings and was the only truck to receive the safest award by the Insurance Institute. Whenever a manufacturer makes a TSB or recall do you have the owner come out and state we do have safe vehicles? By the way Kate there’s more than one person to blame out there dear not just Mr. Toyoda. The idiot driver……
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Breathe deep J.D.
Stupid people make me go a little wacky.
Another good article here.
http://www.investors.com/NewsA.....?id=520336
So did the media and NHTSA make a big deal of spare tires falling from Tundra’s or Tacoma’s breaking in half all due to rust? So don’t give that BS that the Goverment is holding us down and promoting other manufactures. Open your eyes, Toyota did it to them selves and eveyone is acting like its a personal attack. Now as for blaming the manufacture of the accelerator assembly, they are only half of it. Toyota’s quality assurance department apparently doesn’t exist. So if the Goverment wanted to really do you guys conspiracy theory and scare the public into buying other brands it would be really easy. Just make a big deal of the truth and run all the quality issue of Toyota for the past couple years. Accelerator, brakes, frames, does it get any worse? Now bring up other manufactures recalls, but remember are any of them breaking in half. Tundra the truck that is changing everything literally!
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JD I agree stupid people make me wacky too, but whiners are defiantly worse. Oh but it is the goverments fault and they are making Toyota look bad. No, ignorant owners who don’t know how to drive or maintain their vehicles are making them look bad, but blame others. LMAO
Kate – I love the devil’s advocate comments – keep em’ coming! As for your point about blame shifting, I think you might want to re-read the article. The issue here isn’t that Toyota screwed up – the issue is that a politician made a blatantly incorrect statement…and when you combine his mistake with the fact that GM and Chrysler are government owned you have the possibility of a conflict of interest. Until GM and Chrysler are removed from Uncle Sam’s portfolio, politicians like LaHood have to be extra careful when they make such sweeping statements about rival manufacturers.
Anonymous glad you can state what you like. It’s a free country. When the same issue of brakes on Fords Hybrids are the same on Toyota then you go ahead play a giraffe and put your head in the dirt and claim I don’t see anything. The same goes to cadillac that had the same issue of runaway but wasn’t promoted the same way. Yes the quality assurance has missed the brakes. As for the rust time had to tell that. As for this pedal issue the same. Why not read those articles I put up and then you can throw your hate as usual out there.
Excuse me Kate. Jealousy has nothing to do with my point. Rational thinking is my crutch.
Nothing in my post indicated I don’t like Toyota. In fact, as long as the govt is in an ownership position with GM or in bed with the UAW (which is to say as long as I stay on the planet) I will own nothing but a Toyota, all things being equal. Of course circumstances could change and I would be forced to alter that position.
At this point in time the quality issue is a moot point. Thay all have issues. My position on freedom from tyranny is non negotiable. See you at the polls.
Good post Kate! You’re exactly right with the blame shifting.
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JD: The reports of the F150 airbag deployment have occurred at startup of the vehicle, while in park, not moving. Not one accident from such issue has been reported. So your 70mph is a nice hypothetical scenario, which possibly could occur, but hasn’t as of yet. And a car running away at over 100mph due to a sticking pedal is just as dangerous as an airbag going off at 70mph. The Ford airbag issued needs fixed, no doubt.
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And the Ford CC recall was a suppliers (Texas Instruments) faulty piece. The Explorer rollovers were due to a suppliers (Bridgestone/Firestone) faulty tire. Ford who neither owns nor makes these items apologized. Using your philosophy, then neither of these are Ford issues since they were built by vendors. So exactly, where is the difference between this Toyota recall and Fords? Ford used Firestone tires and that CC switch was built to Ford specs, as the pedals were built to Toyota specs. Toyota and Ford are equally to blame for their recalls, enough of the shifting blame as Kate stated.
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This lame lazy excuse of the government owning GM/Chrysler and doing this on purpose, all while now adding a rebate is tiresome. Why are some Honda dealers offering discounts for this same thing then? Last I checked they are imports and not owned by the government? Yes it
Justin – I’m shocked – somehow the article has been hijacked! This isn’t about a conspiracy to blame Toyota, nor is it about “shifting blame.” Re-read the article – the point is clear. NHTSA is inherently suspect so long as the government owns a portion of GM and Chrysler, and LaHood’s initial comments (plus his awkward backpedaling) did nothing to diffuse that suspicion.
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Where’s this talk about discounts? I don’t remember mentioning discounts…what am I missing?
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To me, it’s clear that some people (Justin, Kate, anonymous), are more focused on convincing Toyota owners that Toyota is at fault than they are acknowledging that our government officials could be guilty of a conflict of interest. SO, let me set everyone straight: Toyota is ABSOLUTELY, UNEQUIVOCALLY to blame for this problem.
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NOW, since we’re all on the same page…How screwed up is it that our government owns two major auto manufacturers and yet is still responsible for safety? This fact causes suspicion…and LaHood’s stupid comments didn’t do anything to diffuse it.
Thanks Jason, well resaid.
Marko – LOL! Re-said indeed. Thanks.
Jason: How about this conflict of interest? Toyota has its friends in DC that’ll defend them, no?
http://finance.yahoo.com/news/.....0&.v=11
Justin – Good link. I think the case could be made that Toyota might “own” some members of congress, and GM/Chrysler/UAW might own some members of the Obama administration. We’ll never know of course, but LaHood’s comments are definitely suspicious, and congress’s investigation of Toyota could to be tilted “pro Toyota.”
Justin that can be stated for all manufacturer’s here in the US period. All senators would fight to get a big manufacturer for their respective district or states. But that doesn’t exclude what Jason put out with the govt owning two manufacturer’s and running the NHTSA. That there is a conflict of intrest.
Also Mr. Lahood could have settled this by simply stating to Brian Williams that he is intrested in ALL safety issues on ALL manufacturing of vehicles, not just Toyota. But not mentioning that makes it clear he’s only on one objective period.
Ok, so now there is a post “Runaway Toyota Accidents Almost Always Driver Error”. So any Toyota fan or owner should thanks Lahood for looking out for their safety. Apperently Jason also knows the issue of Toyota owners operating their vehicle in a safe manner just as Lahood does. So it makes since now, I understand why owners and fans are so upset about his statement. Atleast there is a trend to identify ignorant people these days, they drive Toyota’s.
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Congress and the other BS, that’s funny push the blame!
todd – I don’t understand – you’re assuming that driver error is not a factor in accidents, and that Toyota’s are inherently unsafe – is that it?
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Jason no need to try to talk to a moron. You know as well as I the police don’t call vehicle crashes “accidents”. They are called crashes for a reason. There’s always someone negligent in one. Jason, Todd knows what you’re saying he’s playing the dumb rule. He knows Toyota isn’t the only one that has the accelerator issue. If he even bother to look it up he would see for a long time this has been an issue on all the manufacturer’s. Toyota doesn’t have the most incidents either if he even bother to look. Todd just a cheerleader on the sideline wishing he was in the ball game. Now Todd if you’re the knowing one tell my Mr. Lahood or who ever was in charge of the NHTSA didn’t state the same to GM with their ball joint and lower control arm issue? That’s safety also. Many crashes occurred on this. Now quit being a stooge for the domestics and use your god given brain.
Mickey – LOL – Todd will respond with something clever I’m sure…