Monday, February 22, 2010

Toyota memo shows bragging for savings $100m inrecall

Here's an artist's rendering of the company...




Toyota's reputation for safety has come under renewed scrutiny after an internal memo showed that the carmaker's executives boasted of saving $100m (£65m) through a limited recall of floor mats connected to a potentially dangerous acceleration defect.

The memo was among documents released to a US congressional committee investigating Toyota's handling of safety issues. Its contents were revealed just days before the company's chief executive appears in front of the committee.

The memo shows that in a confidential presentation at its Washington office last July, Toyota said it had slashed costs by persuading US regulators to agree to an "equipment recall" to fix defective floor mats in about 55,000 Camry and Lexus ES350 models.

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