LAST UPDATED : 2010-09-02 13:41:17 GMT+7 
 


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US politics playing large part in Toyota issue

 
Hiroshi Ikematsu and Keiichi Honma
The Yomiuri Shimbun
Publication Date: 26-02-2010

The US Congress' unusually zealous move to hold three public hearings over Toyota Motor Corp's massive recalls in just eight days seems to partly reflect the calculating motives of Congress members from car-manufacturing states in anticipation of November's off-year elections, according to observers.

Given this, these hearings could be regarded as a political showdown between Congress members representing states that are home to the US Big Three carmakers and pro-Toyota lawmakers from states where many Americans work at factories run by the Japanese automaker.

The conflict of opinions among House of Representatives members over Toyota's recalls and repairs became evident when they spoke at a hearing at a subcommittee of the House Energy and Commerce Committee on the issue Tuesday. During the hearing, Rep Joe Barton, Republican from Texas, insisted on restraint in attacking Toyota, saying, "I don't believe...we should go on a witch hunt...We don't want to just assume automatically that Toyota has done something wrong and tried to cover it up."

Barton's sentiment was echoed by Marsha Blackburn, Republican from Tennessee, who asked other members of the committee not to "play politics" in dealing with the issue, adding she did not want erroneous information spread about Toyota. She said there should not be a "trial" at Tuesday's hearing at the Oversight and Investigations Subcommittee.

Both these Congress members' home states - Texas and Tennessee - in the southern United States host Toyota manufacturing facilities.

Their defence of Toyota was in stark contrast to the relentless criticism levelled against the Japanese car manufacturer by Democratic subcommittee members representing Midwestern states, where Big Three production bases are concentrated.

Subcommittee Chairman Bart Stupak, Democrat from Michigan, pulled no punches when he said: "Toyota provided software upgrades to certain vehicles...but we're left to ask what Toyota will do for the owners of its cars that can't receive the safety upgrade."

Bobby Rush, Democrat from Illinois, was even more merciless in castigating Toyota. "[Drivers getting into their Toyota cars] had no idea that their trusted vehicles had the potential to become, literally, killing machines."

According to observers, the US jobless rate, which has hovered around a disturbing 10 per cent, is a factor behind the crude attack on Toyota by some Congress members. It should be noted, however, that Toyota keeps more than 170,000 workers on its payroll in the United States, including employees at dealerships. Therefore, Congress members from states that are home to Toyota plants and dealerships have good reason to defend Toyota.

To members of the US House and Senate, televised congressional hearings are an excellent opportunity to play to the gallery.

In a Jan 19 special election, Republican Scott Brown captured the Senate seat held by liberal champion Edward Kennedy in Massachusetts for nearly a half century, upsetting Democrats from coast to coast.

Immediately after the Republican win, Toyota announced its massive recalls, arousing growing concerns among the US public about suspected defects in some of the carmaker's models. All this prompted Congress to decide on a series of public hearings on the problem, the first of which was held Tuesday.

Divisions among Congress members over the Toyota problem resembled their attitudes toward the aid package revealed by the administration of President Barack Obama for the beleaguered General Motors Co and Chrysler Group, LLC, last year. Democrats from midwestern states - where their party prevails - threw their support behind the rescue package. Meanwhile, those representing southern states - home to manufacturing facilities run by Toyota and other Japanese corporations - blamed the Obama administration.

The current conflict of views among committee members over the recall issue means the tables have been turned. In addition, the governors of six states, where Toyota has plants, have spoken in defense of the Japanese carmaker. This odd development was described by a recent Wall Street Journal article as "a tricky political situation" into which "Toyota is wading".

The ongoing attack on Toyota in the United States can be attributed, in part, to the automaker's failure to properly address growing concerns and frustration felt by US consumers about the safety of Toyota cars since last autumn. Over the years, Toyota has increased the number of its manufacturing facilities in southern states, where the Republican Party dominates. The Japanese automaker also has formed ties with GM - which enjoys strong connections with Washington - including joint NUMMI operations in California. For Toyota, GM has served as a conduit for the US administration and Congress.

However, all this was turned around when Obama came into the White House last year, followed by GM's business failure.

This came after Akio Toyoda was named Toyota president in early 2009, coupled with new operational arrangements for Toyota's car production in the United States. This apparently contributed to Toyota's delay in accommodating changing circumstances affecting the firm in the US market.

But Toyota's current recall crisis seems to be anything but a fatal blow to the world's biggest carmaker. On Tuesday, US Consumer Reports magazine named the Toyota Prius as the best eco-friendly car among 300 vehicles, despite the hybrid being the center of the recall fiasco. This shows US consumers still value Toyota cars, indicating the besieged car giant stands a good chance of regaining consumer trust, according to observers.





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