Toyota, GM auto recalls may set record

Two automakers accused of concealing safety issues.
By TOM KRISHER and DEE-ANN DURBIN, Associated Press Published: April 10, 2014

— Big U.S. recalls by General Motors and Toyota have put the auto industry on a record pace as companies try to avoid bad publicity and punishment from an increasingly aggressive government.

On Wednesday, Toyota announced it was recalling nearly 1.8 million vehicles in the U.S. to fix a spate of problems, including air bags that might not inflate. It’s part of a worldwide recall of 6.4 million cars and trucks.

So far this year, automakers have recalled about 9 million vehicles in the U.S. If that pace continues, the nation would break the record of 30.8 million recalled vehicles set in 2004.

Most of the recalls are from Toyota and General Motors, which are under government scrutiny and facing bad publicity and allegations that they concealed safety issues.

Toyota’s latest recalls were announced before the company even developed specific repairs. They come two weeks after the Justice Department skewered the Japanese automaker for covering up problems that caused unintended acceleration in some cars starting in 2009. Toyota agreed to pay $1.2 billion to settle that case, but federal prosecutors can resurrect a wire fraud charge if the company fails to comply with the terms of the settlement.

Toyota’s actions come as rival GM recalls 2.6 million small cars for defective ignition switches the company links to at least 13 deaths. Of those, 2.2 million are in the U.S. As that crisis unfolded, GM announced recalls of another 3.4 million U.S. vehicles.

GM is facing a Justice Department investigation, and last week its new CEO was grilled by Congress over its handling of the ignition recalls. It also faces possible fines of $7,000 per day.