Toyota faces possible criminal charges

Toyota faces possible criminal charges

Excuse me but can this Toyota story get any more odd?

Monday began here in Washington DC with a radio report citing a Toyota memo that appeared to gloat that the company had saved one hundred million dollars by convincing US authorities to limit a vehicle recall three years ago.

By lunchtime, however, things had got far worse for the Japanese car giant when Toyota said it had received subpoenas from a US Federal Grand Jury, related to problems with acceleration and braking systems in Toyota cars.

In other words Toyota's widely reported safety issues were now being elevated to the level of a possible criminal investigation. It means someone from the firm's HQ will have to answer questions before a Federal Grand Jury about the unintended acceleration of some Toyota vehicles and the faulty breaking of the hybrid Prius.

Depending on the evidence criminal charges may follow.

The subpoena comes from the Attorney General in the Southern District of New York and at the same time a voluntary request for information has come from the leading US stocks and shares regulator the SEC which is looking into Toyota’s disclosure polices and practices.

In a written statement Toyota said: "Toyota Motor Corporation and Toyota Motor Sales [USA Inc] intend to co-operate with the investigations and are currently preparing their responses thereto."

News of the Grand Jury investigation comes just hours after the release of a document showing Toyota knew of safety problems in its vehicles as early as 2007.

A memo issued to the same committee before which the company's CEO will testify this week appears to show Toyota gloating over their success in limiting a 2007 recall on some cars where the driver’s foot mat interfered with the accelerator.

It's sure to make for a rough ride on Wednesday when Akio Toyoda appears at a congressional hearing in Washington DC on Wednesday.

The grandson of the firm's founder says he'll answer questions with "sincerity and conscience" but the existence of the so called gloating memo and news that possible criminal charges are pending against Toyota mean Wednesday is likely to be another grim day in the life of one of Japan's once gleaming corporations.

Oh, by the way - in case you've ever wondered why the Toyoda family called their firm Toyota?

Apparently Toyota with a "T" is easier to write in Japanese and considered far luckier than Toyoda with a "D" - until now that is!