Toyota’s Inaba boasted saving $100 million avoiding full recall last year

Last July, Toyota executives boasted the company saving $100 million by negotiating a limited recall for the Toyota Camry and Lexus ES over a problem that could cause unintended acceleration.

In an internal Toyota document that was used during a presentation on its government relations, dated July 6, 2009, it says: “Negotiated ‘equipment’ recall on Camry/ES re: [sudden acceleration], saved $100 million+ with no defect found.”

“Equipment” recall is a type of a limited recall that is often used to repair an accessory or non-essential part of the car. The presentation was given by Yoshi Inaba, Toyota’s top North American executive.

A month after Inaba’s presentation, in which he boasted Toyota saving $100 million over a full recall, a family of four were killed in a Lexus involving a stuck gas pedal under a floor mat. In November 2009, Toyota eventually issued a full recall on the issue to prevent further incidents.

In a statement released by Toyota regarding the documents it recently shared with Congressional Committees, Toyota said:

“Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality. Our recently announced top-to-bottom quality review of all company operations, along with new quality initiatives and a renewed commitment to transparency are all designed to reaffirm these values.”

You can check out a video of the Lexus family’s 911 call after the jump.

– By: Omar Rana

Source: CNN