Rodney Johnson - Without Warning

Have you ever played a game where your opponent didn’t play fair? For instance, a baseball player that had a corked bat or a golfer that deliberately moved their ball to improve the lay. In each of these instances, deliberate acts (cheating) can change the outcome. Well, this appears to be what Toyota has been doing for over a decade.

Earlier in the week, I wrote about how Toyota’s sales had been declining due to lapses in quality, reputation and design. Today, the LA Times in an article titled Toyota found to keep tight lid on potential safety problems states, A Times investigation shows the world’s largest automaker has delayed recalls and attempted to blame human error in cases where owners claimed vehicle defects…

In the wake of Toyota’s announcement of the massive recall (referring to the rash of acceleration problems Toyota vehicles have experieced), The Times examined some of the ways the automaker has dealt with safety problems in recent years and found that:

* The automaker knew of a dangerous steering defect in vehicles including the 4Runner sport utility vehicle for years before issuing a recall in Japan in 2004. But it told regulators no recall was necessary in the U.S., despite having received dozens of complaints from drivers. Toyota said a subsequent investigation led it to order a U.S. recall in 2005.

* Toyota has paid cash settlements to people who say their vehicles have raced out of control, sometimes causing serious accidents, according to consumers and their attorneys. Other motorists who complained of acceleration problems with their vehicles have received buybacks under lemon laws.

* Although the sudden acceleration issue erupted publicly only in recent months, it has been festering for nearly a decade. A computerized search of NHTSA records by The Times has found Toyota issued eight previous recalls related to unintended acceleration since 2000, more than any other automaker.

* A former Toyota lawyer who handled safety litigation has sued the automaker, accusing it of engaging in a “calculated conspiracy to prevent the disclosure of damaging evidence” as part of a scheme to “prevent evidence of its vehicles’ structural shortcomings from becoming known” to plaintiffs lawyers, courts, NHTSA and the public.

As a result, plaintiffs attorneys are considering reopening dozens of product-liability suits against the automaker.

If the allegations in the LA Times article is correct, Toyota has been living a life where Silent Problems (in this instance, problems that are being intentionally silenced) have been a normal operating procedure. The allegations are damaging and now that the silence is broken, Toyota’s image and reputation are being challenged and its loyal customer base, compromised.

Prediction: When Silent Problems of the Ice Box variety escape, the resultant impact is huge. What was once under control, is now out of control. Every word is dissected, every claim challenged, every decision questioned. I’m convinced that Toyota is in bigger trouble than most can even comprehend. Don’t be surprised if Toyota is the next G.M.