U.S. launches criminal probe into Toyota safety

[DainBramaged]

Federal prosecutors have launched a criminal investigation into Toyota Motor Corp.'s safety problems and the Securities and Exchange Commission was probing what the automaker told investors, the company disclosed Monday. Newly released internal documents showed that Toyota officials visited with U.S. regulators years ago who "laughed and rolled their eyes in disbelief" over safety claims.

The twin developments created new public relations challenges for Toyota plus the prospects — however likely or unlikely — of hefty federal fines or even indictments against executives in the U.S. and Japan. They also complicate Toyota's ability to discuss details driving its recall of 8.5 million vehicles because anything executives say could be used against the company inside a courtroom.

Top Toyota executives were expected to testify at hearings Tuesday and Wednesday on Capitol Hill. One lawmaker said he believed Toyota misled owners about the repairs and relied upon a hastily-arranged study to reassure the public.

In a new filing with the SEC, Toyota said it received the grand jury request from the Southern District of New York on Feb. 8 and got the SEC requests Friday.

It wasn't immediately clear what U.S. laws Toyota might have broken. A subpoena would specify why prosecutors sought company documents, but Toyota would not comment beyond its disclosure with the SEC. A spokeswoman with the U.S. Attorney's Office for the Southern District of New York declined to comment, saying it does not confirm or deny its investigations as a matter of policy.

http://www.msnbc.msn.com/id/35520628/ns/business-autos/

It's about time.

[DainBramaged]

1. More

preliminary assessment is that Toyota resisted the possibility that electronic defects could cause safety concerns, relied on a flawed engineering report, and made misleading public statements concerning the adequacy of recent recalls to address the risk of sudden unintended acceleration."

Stupak said the documents show the sole report produced by Toyota on the acceleration issue purported to test and analyze potential electronic causes. The report, by consulting firm Exponent Inc., "was initiated just two months ago and appears to have serious flaws,"


I wrote about and read that report. Flawed wasn't the word.

Toyota study clears (itself of) electronics as acceleration cause
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7715998

[BeatleBoot]

2. As well they should n/t