Feb 4, 2010

Report: Administration may be bullying Toyota on recall

It is well known that the U.S. government has a major stake in Toyota rivals General Motors and Chrysler.

Is that why U.S. transportation chief Ray LaHood (pictured) has rebuked Toyota's handling of a massive safety recall publicly?

From a report at the link below:

"The optics are terrible because -- and this is what happens when a government owns a company - the two companies that are going to gain the most out of this are General Motors and Chrysler," said Peter Morici, a professor at the University of Maryland's business school.

"But their behavior is consistent with the general policy of the US government, whether it's dealing with coffeemakers or cars."

Safety officials understand that product design mistakes are inevitable and will work to help companies correct the problem and alert consumers. But they will not tolerate a slow or weak response, Morici told AFP.

In this case, the Obama administration seems to be working against Toyota rather than trying to help the problem. Otherwise why did transportation chief LaHood tell Toyota owners to stop driving it. Take it to a Toyota dealer?

Was LaHood trying to protect GM (Government Motors) and the many thousands of UAW workers or did he just have a Biden moment?

Link