Behind The Wheel
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- Savings at the Pump Still Supreme for Car Buyers
- GM Says It's Dropping Out of Super Bowl Ad Race
- Two New Models, Two Different Drivers in Mind
- GM Still Likes Its No-Facebook Ad Strategy
- World's Biggest Brands Flex Their Muscles
- A New World Record: 80 Million Vehicles... and Counting
- Is Toyota Back?
- Ford Cuts Summer Idle Time at US Plants, Will GM Follow?
- Auto Stocks Stuck in Neutral
MOST SHARED
- Greece Pours $22.6 Billion Into Four Biggest Banks
- Europe Has Wall Street's Bull on a Short Leash
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Spain's Borrowing Costs Near Danger Level: Bailout Next?
- Winemaking Lures the Wealthy, But Not With Profits
- Collectors Wary Of Investing In Josh Hamilton
- The Shortage of Women Billionaires
- 5 Spots Where the Dollar Buys a Great Vacation
- 10 Ways to Save Money by Spending More
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Spain's Debt Costs Near Danger Level: Is Bailout Next?
- US Markets Will Be Watching Europe—And Jobs Report
- European Companies Plan for Greek Unrest and Euro Exit
- Public Pensions Faulted for Bets on Rosy Returns
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Italy 2-Year Borrowing Costs at Peak Since December
- Euro Bond Wins Supporters, but Details Remain Vague
- German, UK Bond Yields Will Go Even Lower
- Labor Board Member Resigns Over Leak to GOP Allies
RSS FEED
Prius Problem Exposes Toyota's Bigger Headache
CNBC Correspondent
![]() |
Getty Images 2010 Toyota Prius |
His story is a scary one in which he says the car kept speeding up even as he hit the brake.
It wasn't until a California Highway Patrol officer caught beside him and yelled over the squad cars PA system to use the emergency brake that the driver could get the Prius to slow down to 50 MPH where the driver then could turn the car off and safely bring it to a stop.
The driver says he checked the floor mat (the '08 Prius is part of the floor mat recall) and that wasn't the problem. The Highway patrol officer says he could see the brake lights of the Prius were on and he could smell the brakes as he approached the car after it stopped.
There in a nutshell are the facts as we know them.
While Toyota [TM
Loading...
()
] and the National Highway Traffic Safety Administration are investigating the car and the incident, the real problem for Toyota is that this incident raises new questions about the company.
Specifically, people are asking if this case shows Toyota has a bigger problem with its cars?
Yes, I know that there are people who will be skeptical of the Prius driver's story. Just as there are others who are convinced this is one more case of Toyota vehicles have a serious problem with their electronics. But it's the big group in between who are going to hear this story and say, "Hmmm, what's going on?" They may not make up their minds either way, but this has created enough uncertainty to make them think twice before driving or buying a Toyota. As a friend of mine who has been a happy and loyal Toyota owner told me this morning, "I now find myself taking my foot off the gas on the highway every so often just to see how the car will react."
The runaway Prius in California may not have hit other cars and nobody was injured, but Toyota will suffer because it will keep the public asking, "Do they know everything that's wrong with these cars?"
On a day when Toyota showed a technical demonstration refuting allegations that it may have flaws in its electronics, one incident on a California highway has blown coverage of the technical display completely out of the water.
Instead of things returning to normal, Toyota once again finds itself defending the safety of its vehicles.
__________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
___________________________
Questions? Comments?










