US Government Involvement in the Auto Industry

Toyota Blames Drivers for Some Sudden Acceleration Cases

Toyota Motor (TM) has long blamed motorists for some incidents of unintended acceleration in Toyota and Lexus brand vehicles. The world's largest automaker has reiterated that charge, which it calls "pedal misapplication," following a news report Tuesday that federal investigators have found little evidence of an electronic source for the problem.

In a statement Wednesday, Toyota said its own investigation of nearly 2,000 cases of unintended acceleration found no problem with its electronic throttle system and that driver error was to blame in some cases.

Toyota issued the statement after a Wall Street Journal report Tuesday said early results from U.S. Transportation Department analysis of data recorders from wrecked Toyota vehicles involved in cases of unintended acceleration suggested driver error as the cause. The agency found that at the time of the crashes, the vehicles' throttles were wide open and the brakes not applied, the Journal reported, citing unnamed sources familiar with the matter

Still Not the Whole Answer

That evidence suggests that drivers of Toyota and Lexus vehicles who reported their cars accelerated uncontrollably were mistakenly pressing down on the gas pedal rather than the brakes. The Journal story noted that the initial findings don't exonerate Toyota from two known issues of the problem -- sticky gas pedals and faulty floor mats that may pin the accelerator to the floor.

Toyota has recalled nearly 7 million cars in the U.S. to fix those problems. The sticky pedal recall, which involved some 2.3 million cars in the U.S., was also the source of a $16.4 million fine imposed by the National Highway Traffic Safety Administration earlier this year. Toyota paid the fine in April.


See full article from DailyFinance: http://srph.it/bJEFjs

The federal government’s ownership stakes in GM, Chrysler, AIG and others, at a glance
By AP
April 21st, 2010

The government’s remaining stakes in US companies

General Motors says it’s finished repaying $6.7 billion in loans it received from the government as part of the bailout that helped it emerge from bankruptcy protection. That brings total repayments from banks and other firms to the government’s bailout fund, the Troubled Asset Relief Program, to $186 billion, the Treasury Department said.

But the government still owns most of GM and large chunks of several other firms. Here’s what Uncle Sam — in other words, the taxpayers — owns:

— GM: Government owns 60.8 percent, a $40.7 billion investment.

— Chrysler: Owns 9.9 percent after investing $12.5 billion.

— GMAC: Owns 56.3 percent after investing $17.2 billion.

— Citigroup: Owns 27 percent after investing $25 billion.

— Small banks: $69.1 billion invested in 641 small banks.

— AIG: Owns 79.8 percent in return for $47.5 billion invested. Federal Reserve has lent an additional $63 billion.

— Fannie Mae: Owns 79.9 percent after providing $75 billion.

— Freddie Mac: Owns 79.9 percent after providing $57 billion.

The government also owns millions of warrants. These provide the right to buy additional shares in many of the companies it has bailed out. Some of its largest warrant holdings are in Citigroup, Wells Fargo and AIG.