Car makers running scared

BY CATHERINE HARRIS

What effect is the recent spate of car recalls and safety concerns likely to have on car sales and on the future of car making?

When Akio Toyoda fronted up to the United States Congress last week, he did so to satisfy the American public's demand that Toyota's man at the top publicly apologise for three safety scares in as many weeks.

"For me, when the cars are damaged, it is as though I am as well," he said.

The company widely regarded as the world's most reliable car maker now has the dubious distinction of having implemented one of the biggest car recalls in history.

It has blamed its own rapid growth for lowering quality which has caused the recall of 8.5 million late-model Avensis and Prius models. More recently, US authorities have begun to investigate the Corolla, New Zealand's top-selling car.

"Toyota is still in the middle of its global recalls, and new problems keep showing up. It's like Tiger Woods: new mistresses keep appearing," said Rebecca Lindland, an analyst with consulting firm IHS-Global Insight.

The Avensis' problem came to light after complaints about unintended acceleration. One driver gave evidence that for 10 minutes she could not control her speeding car, even though she used the brakes.

The hybrid Prius, Japan's biggest-selling car last year, made drivers feel as though there was a split-second delay in braking under slippery conditions.

Now Corollas in the US are under investigation after about 100 complaints about the steering suddenly pulling to one side.

In New Zealand, only 321 Avensis and Prius cars have been recalled, and its Corollas are sourced from the company's Japanese factories where no problems have been found.

Toyota New Zealand general manager of after sales, Paul Carroll, said last month that it would be "naive to think this whole thing wouldn't cause some issues".

However, the company is not yet willing to attribute the bad publicity to its fall in market share, from nearly 20 per cent to 13 per cent, in February's new-car sales.

Corolla also lost its lead, slipping to fourth place behind the Suzuki Swift, but the company blamed a quiet period for fleet buying.

In any case, most commentators believe the backlash won't last.

"People will be much more cautious, but there's no way Toyota will lose a lot of sales," said Clive Matthew-Wilson, editor of the car buyers' Dog and Lemon Guide.

He believes Toyota "rightly deserves" the humiliation because of its complacent attitude towards complaints, but quality-wise he thinks it is still better than most car companies which are now "all terrified" of the "faintest hint of a safety cover-up".

The fact is, car recalls happen regularly.

"There would be three or four recalls within the industry each month," says the Motor Industry Association's chief executive, Perry Kerr.

Overseas, Peugeots and Citroens have been recalled for similar accelerator problems. Last month alone, Hyundai recalled its latest Sonata model in the US over sticky doorlocks, and Isuzu recalled 4000 trucks over a natural-gas fuel leak that could result in fires in the cab.

Suzuki has recalled more than 432,000 units with an air conditioning flaw that could cause a fire. Daihatsu, a Toyota subsidiary, plans to recall more than 60,000 vehicles for faulty wiring that could launch an airbag. Nissan has called in more than 76,000 vehicles over defective engine wiring that could stall the car.

So no one is keen to rub salt into Toyota's wounds, says Liz Dobson, editor of Autofile magazine. "They're all running scared."

Nevertheless, she says, Toyota will be under pressure from other car companies for its place at the top of the New Zealand car sales table.

It has been number one for 22 consecutive years, with Corolla outselling its closest competitor two to one.

The Consumers Institute's Sue Chetwin says she's received no complaints about Toyota, and although she believes it will have a "huge amount of ground" to cover, she is confident consumers are adequately protected by law from faulty new cars.

So is Mr Kerr, who says the safety net is robust. "We've got an automatic system that the companies then put in vehicle details and automatically Land Transport then provides the car companies with the names and address of all the registered owners."

They make an assessment first of whether the cars should be taken off the road.

"In my 20 years, that's only happened three times and it was in relation to buses rather than passenger vehicles."

Recently the system was improved so that any car that has been recalled can be picked up during a Warrant of Fitness check.

However, the shock that even Toyota could be tainted by safety concerns has some people questioning whether new cars are simply not what they used to be. Mr Matthew-Wilson believes it's partly due to the speed with which cars are made. Since the advent of computers, he says it can be 18 months from drawing board to showroom floor.

Suppliers of componentry are coming under pressure to reduce their prices. Some of the faults are quite basic, he says. "The faulty accelerator is a software problem ... it's not rocket science."

ANOTHER change some say might have affected quality is the fact that few Japanese cars are now made in Japan. Much of the work is now outsourced to countries with cheaper labour such as Thailand or Mexico.

"You're going to see a big change in the way Toyota assembles cars, quality-wise, says Mr Matthew-Wilson. "Instituting major changes across the board is going to cost them billions and it couldn't come at a worse possible time."

But Ms Dobson thinks manufacturing speed is not a factor in quality. The research is so costly and safety such an important selling point that "they're not going to scrimp".

Mr Kerr also disagrees about declining quality but he thinks expectations and technological advances are greater.

"Cars are complex pieces of equipment these days. There's a lot that potentially can go wrong.

"Probably the bigger problem, looking five years out, is going to be in electronics and is going to be in the repair of them, the servicing of them."

EMERGENCY BRAKE

What to do if your accelerator gets stuck:

- Consumer Reports magazine in Australia says drivers should first brake hard, then shift the vehicle into neutral. Once the vehicle rolls to a stop, switch off the engine.

- Turning off a speeding car could affect power steering and power of brakes.

The engine would still be revving loudly as you try to stop the vehicle, but do not turn it off until the car is stationary. If you turned the key while still in motion, it could activate the steering lock and you may lose control of the vehicle.

- Toyota says: Do not pump the brakes when attempting to stop the car, press down firmly and hold.

- © Fairfax NZ News