Toyota's New 1.52 Million Recall: Poor Workmanship Or Fear Of Government Reaction

The Transportation Department probably keeps statistics on car recalls which date back to the Model T. It does not matter much since problem cars are recalled for an infinite number of reasons and some problems are much more serious than others.

Toyota (NYSE: TM) recalled 1.53 million Avalons along with a small number of Highlanders and Lexus luxury cars in the US and Japan. All may have brake lines that could leak. Some have fuel pump problems. No accidents have been reported. This recall can be added to the more than 8 million vehicles that the world’s largest car company flagged earlier in the year and a number of much smaller recalls since then.

The tally of recalls by Toyota is now above 10 million. Almost every other large car manufacturer has had recalls as well in 2010 though none approaches the level of the Toyota problems.

More and more recalls are “voluntary” now. That means that the Transportation Department has not forced an action. The car companies are more apt to find what they characterize as small flaws that owners may want fixed. Whether the recalls are required or not, the number of vehicles that have issues appears to have reached extraordinary levels since the beginning of the year.

Cars may be more poorly made now than they were a few years ago. This could be a reason for the rise in defects. Some experts say that vehicles systems are more complex and full of software and advanced engineering. That adds more pieces to break and more reasons for manufacturers to bring models back to dealerships for repairs.

There is another reason that car companies are anxious to fix any tiny flaw. Every car company executive in the world watched Akio Toyoda testify before Congress and sweat it out while he was attacked by person after person. Toyota’s reputation was damaged perhaps as much by his testimony, which dodged and weaved around the issues, as by the recalls themselves.

Car company executives are more likely to be accused of hiding things about car safety now that Toyota documents have shown that the firm was aware of problems, at least at some level in the management chain. The same charges were leveled against US car companies when Pintos and Jeeps exploded or rolled over.  Automakers have come to believe that it is better to confess than have a confession dragged out of you.

Recalls may be up because car systems are more complicated, but it is just as likely that a minor recall now and then helps keep the public’s trust up and the wrath of the federal government down.

Douglas A. McIntyre