Does the Government Pose a Bigger Threat to Toyota Than its Sticky Pedals?
Toyota’s bad press has been for its sticky pedal incident certainly isn’t surprising, but is all the negative attention warranted? When asked about the Toyota recalls, Transportation Secretary Ray LaHood responded by saying, “My advice to anyone who owns one of these vehicles is stop driving it, and take it to the Toyota dealership because they believe they have the fix for it” and that “we’re not finished with Toyota.” Hood later toned down his remarks but immediately after his “stop driving” comment, Toyota’s stocks plummeted. Even after recovering some, the stock closed down 6% that day.
Much like Vice President Biden’s comments not to use public transportation or ride an airplane because of swine flu, LaHood’s comments were a bit over the top and have caused some to question the government’s motive. We don’t speculate motives at The Heritage Foundation, but it’s easy to understand why a government that now owns a major stake in General Motors would want to put continuous bad press on a rival automaker. ...
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