PRODUCT RECALL: Toyota Under Criminal Investigation Over Defective Cars

February 22, 2010

Washington - Toyota Motor Corporation is under criminal investigation after federal prosecutors have found documents revealing that the car maker giant may have misled the public about repairs “which relied on a study that was hastily done to assure consumers.”

Rep. Bart Stupak (Democrat-Michigan), who will initiate the investigation, said that Toyota officials will testify at hearings Tuesday and Wednesday in Capitol Hill.

Previously, Stupak has accused Jim Lentz, president of Toyota Motor Sales USA, of misleading consumers by saying in television interviews that the unintended acceleration were caused by floor mats and pedals.

However, Stupack believes that the company has concealed the potential electronic problems in cars.

In a letter sent to Toyota officials, the lawmaker said the “study over safety concerns, which was only conducted two months ago by the company, appears to be seriously flawed.”

Stupak also said the report released by Toyota “only used an extremely small sample which cannot determine the real cause of the problem."

Stupak, who will lead the investigation together with the House Energy and Commerce Committee, will conduct a hearing that includes Lentz and other top ranking officials of Toyota, Transportation Secretary Ray LaHood, safety experts, and family members of crash victims.

Meanwhile, a Senate committee is planning to conduct another hearing on March 2.

The US Securities and Exchange Commission will also conduct a separate investigation to determine if Toyota has misled its US investors on the safety of its products.