Feb
27
Mr. Toyoda’s Apology, from Victor Niederhoffer
February 27, 2010 |
Perhaps someone can educate me, but an astute friend writes to me that Mr. Toyoda gave a very contritionate diplomatic apology to the US. It seems from the bleachers to me that the problem with making an abject monkey and whipping boy of the big Japanese auto maker is that there is retaliation. It's like raising the tariffs that started World War 1 to me. Surely there is something better to do than bash the Japanese who make cars so much safer than we do, and whose customer satisfaction is so high. Do we really think that this kind of thing helps…
Alan Millhone replies:
I'm on my second leaded Nissan and find them to be a very solid auto. My dealer says Nissans are "Bullet proof" in terms of reliability. You are likely right in your assertions concerning Mr. Toyota. All of us need to learn to get along and be supportive of each other. Likely more mortgage troubles loom and under reported unemployment figures and troubled banks to haunt all of us in the near horizon. I feel my rentals will come back from the dead like gangbusters as folks will not be able to muster required higher down payments to purchase the American dream of owning a home.
Dan Grossman writes:
I would guess the truth of the acceleration for Toyota is something like:
1. We don't know what it is.
2. It may be nothing (mostly driver's error like Audi, maybe a floor mat or two, and for the rest very minor statistical happening of 2 in a million cars, can't reproduce, can't scientifically identify).
But if Toyota said that, all hell would break loose, "The American people will not stand for this" and all kinds of Congressional and Transportation Dept posturing.
So they have to apologize again and again, and recall all the cars, and "fix" the defect that they really have not been able to identify.
I know nothing about auto mechanics, but that's my guess.
Pitt T. Maner III comments:
So if it turns out to be electronic what would this lead to? Would the onboard computer come from another country?
Dave Gilbert, a professor at Southern Illinois University automotive technology department found a design flaw in the electronic system, which prevents the vehicles onboard computer from “detecting and stopping certain short circuits that can trigger sudden speed surges.” As a result of the onboard computers failure to detecting and stopping the short circuits, the computer does not record an error code; and doesn’t activate the system that is designed to shut off the vehicle’s power and put it into “limp home” mode. Therefore there is no way to trace back to the original issue after an incident of sudden acceleration, which has led Toyota officials to continue dismissing accusations of electronic malfunctions. A Safety Research & Strategies advocate stated, “The system is fallible, in fact, it’s got some really troubling design strategies that are employed by Toyota that appear to be outside the norm. And their system clearly has design strategy that has a very slim margin of safety.”
James Lackey writes:
Toyoda has been apologizing since he took the job.
1. Cars break.
2. All cars have defects.
3. All car makers do cost benefit to recall or not to recall and if not to recall why pay for the redesign.
4. All Toyota's problems are from truck losses. They top ticked a new truck line in 2005.
5. F and T both use the same hybrid brake tech with the same feel problems. T was based, F wasn't. Proof there is drama, but why?
6. Toyota employees– so many Americans, it's funny. They wasted trillions of Yen with GM and no one could even come up with an argument not to close the factory of the future in California. We just wondered what took so long for GM to go bust and Toy to quit.
7. See INTC keeping AMD around.
8. Japan and Korea love to argue. Hyundai and KIA are in Alabama and making and selling cars. Watch Olympic speed skaters and you'll understand the battle.
9. In the 80s the Japanese feared a traders tax so they assembled them here.
10. The pedal in question is Indiana manufactured. The Japanese pedal worked fine. Some one is in huge trouble.
11. Toyoda, if like the last Ford CEO named Ford, wasn't much of a car guy. His job is PR. Last year he spent all him time apologizing to the Japanese investors for a financial loss at #1.
Akio Toyoda?
Born May 3, 1956 (1956-05-03) (age 53) Nagoya, Japan Nationality
Japanese Education Faculty of Law, Keio University MBA, Babson College
Occupation President and CEO, Toyota Motor CorporationEnd.
It's a preannouncement silo earnings, dump all bad news and all recalls/problems at once. It's a blizzard. Notice all the car guys (GM F Chrysler/Fiat Honda KIA/Hyundai Nissan Daimler BMW) keeping their mouths shut. It's not that they are being nice and humble, they all have their problems. My dad called me today on a car electrical problem. It's hard to test over the phone. Then I thought, hey where were all the mechanics at the hearings and on the news tape? The people that work on the cars can tell you every single problem and fix per model, if they can't the dat recorders can.
Comments
Archives
- January 2026
- December 2025
- November 2025
- October 2025
- September 2025
- August 2025
- July 2025
- June 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- Older Archives
Resources & Links
- The Letters Prize
- Pre-2007 Victor Niederhoffer Posts
- Vic’s NYC Junto
- Reading List
- Programming in 60 Seconds
- The Objectivist Center
- Foundation for Economic Education
- Tigerchess
- Dick Sears' G.T. Index
- Pre-2007 Daily Speculations
- Laurel & Vics' Worldly Investor Articles