The Real Scandal Behind the Toyota Recall
02-16-10, 05:27 PM
#1
Lexus Champion
Thread Starter
The Real Scandal Behind the Toyota Recall
Fuzzy findings, media manipulation, and tort lawyers scare the public and destroy millions in shareholder and resale value, writes Ed Wallace
Oh, and about that drop in Toyotas' resale value? According to the National Auto Research Black Book, which covers prices of vehicles sold at regional wholesale auctions each week, a one-year-old Toyota Camry CE dropped $100 in value from Feb. 1 to Feb. 8. And it had dropped $400 in average value from the Jan. 11 book.
However, looking at a one-year-old base model Honda (HMC) Accord coupe in the same book, we find it too dropped $100 in value from Feb. 1 to Feb. 8, and $500—or $100 more than the Camry—from the Jan. 11 book. So the Honda Accord's reputation is intact, but it actually dropped more in value during this period. For what it's worth, the Nissan (NSANY) Altima seems to have gained a couple hundred dollars in value over the past month.
However, looking at a one-year-old base model Honda (HMC) Accord coupe in the same book, we find it too dropped $100 in value from Feb. 1 to Feb. 8, and $500—or $100 more than the Camry—from the Jan. 11 book. So the Honda Accord's reputation is intact, but it actually dropped more in value during this period. For what it's worth, the Nissan (NSANY) Altima seems to have gained a couple hundred dollars in value over the past month.
- some history on bad media reporting problem, this has not been first or last time, quoting some good info and how when real story comes out, media never covers it equally.
02-16-10, 05:35 PM
#2
Lexus Test Driver
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Yea, ever since the first recalls were announced and as subsequent recalls were announced I got the impression that the American media and American automakers were really milking the situation.
02-16-10, 05:56 PM
#3
Lexus Champion
Great well written article. Thanks for posting. Sadly the media doesn't get people to watch their news reporting unless it's got drama. I'm sure Toyota will bounce back fine.
Unfortunately, I think the auto industry will be experiencing the recall hysteria more often going forward.
Unfortunately, I think the auto industry will be experiencing the recall hysteria more often going forward.
02-16-10, 06:43 PM
#4
Lexus Fanatic
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it's about to get possibly worse as toyota is being investigated for not issuing a recall quickly enough.
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We'll certainly see how this all develops.
02-16-10, 08:47 PM
#10
Lexus Fanatic
Although this recall is major and not good for Toyota the media does seem to be blowing it out of proportion, I see something new on Toyota's woes every time I go on the Yahoo or AOL homepage. Considering the mainstream media is overwhelmingly supportive of the current administration which is sympathetic to the UAW and the government now owns part of GM and Chrysler I would not be surprised at all if members of this administration are pressuring and encouraging the media to go after Toyota much more then they would if this recall happened to the big 3. Still, if it comes out that Toyota knew about this issue and other issues and chose to ignore it or stall it in hopes it goes away then I can't feel too bad for them and they should be taking some heat.
02-17-10, 04:15 AM
#13
Lexus Champion
Thread Starter
Although this recall is major and not good for Toyota the media does seem to be blowing it out of proportion, I see something new on Toyota's woes every time I go on the Yahoo or AOL homepage. Considering the mainstream media is overwhelmingly supportive of the current administration which is sympathetic to the UAW and the government now owns part of GM and Chrysler I would not be surprised at all if members of this administration are pressuring and encouraging the media to go after Toyota much more then they would if this recall happened to the big 3. Still, if it comes out that Toyota knew about this issue and other issues and chose to ignore it or stall it in hopes it goes away then I can't feel too bad for them and they should be taking some heat.
there is no problem with govt being hard on toyota... problem is that they are being hard only on toyota.
corolla had 80 complaints for "vague steering, having to hold steering wheel with two hands"... Cobalt has 1200 complaints about "failure of power steering during driving". GM refused to recall even if they fixed the problem on production line year ago (GM said that they dont consider power steering failure as safety issue, 10 days ago).
and then toyota is hiding problems on corollas ;-)
