State University of New York Institute of Technology
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Toyota: Setting the precedence for GM

With recent coverage of General Motors’ problems with certain vehicle’s ignition system turning off causing an accident killing the occupants, Toyota Motor Corp, previously faced with a similar problem, will pay a record $1.2 billion to resolve its criminal probe into safety issues.  If you recall, certain Toyota products were speeding uncontrollably and disabling the braking function, causing at least 5 deaths.  Toyota concealed information about the problem from the public and regulators.  This miss leading of customers and safety issues are currently problems of GM.

With GM’s recent recall of 1.6 million car due to an issue discovered 13 years ago, it is believed that the case against Toyota will set the precedence for GM’s investigation and prosecution. This case against Toyota was the first federal criminal case of its kind since the passing of the 1966 Motor Vehicle Safety Act, requiring manufactures to report possible defects.

With Toyota looking to put the investigation behind them, they still face hundreds of lawsuits from customers.  Only time will tell if GM will follow in their footsteps or if jail time will be the outcome.

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