GENERAL MOTORS has blamed a supplier partly owned by Toyota for a faulty car part that led to the recall of 1.3 million Chevrolet and Pontiac cars in North America.
Bob Lutz, GM’s vice-chairman, yesterday told the BBC in Geneva that the supplier – separately identified as JTEKT, a joint venture between Toyoda Machine Works and Koyo Seiko – had not met “all requirements for reliability and durability”.
His criticism came as Toyota, its reputation battered after recalls affecting more than eight million cars and trucks, sought to reassure US lawmakers at the third congressional hearing in the past 10 days into the safety and reliability of its vehicles.
Takeshi Uchiyamada, Toyota’s chief global engineer, rejected allegations linking unintended acceleration to vehicles’ electronic systems rather than the mechanical defects identified by Toyota. The Japanese carmaker reported an 8.7 per cent fall in its US sales last month.
GM announced yesterday it was recalling 1.3 million small cars in North America due to a power steering problem linked to 14 crashes. US safety regulators opened an investigation in January into about 905,000 Cobalt models in the US after receiving more than 1,100 complaints of power steering failures.
GM said the affected vehicles could still be “safely controlled” but that greater steering effort might be needed under 15mph (24kph). Drivers would see a warning light and hear a chime if the power steering failed.
JTEKT is based in Japan but has five manufacturing plants in the US. A call for comment to the company’s US head office in Michigan was not returned.
Toyota yesterday unveiled several fresh measures to help rebuild its reputation following the recalls of vehicles with potentially defective accelerator pedals, floor mats or braking systems. It began offering discounts and interest-free financing deals in the US.
Susan Docherty, GM’s North American sales chief, said that none of the Chevrolets or Pontiacs affected by yesterday’s recall would be sold until the power steering motor had been replaced.
Separately, General Motors said yesterday that it was increasing its own contribution to the restructuring of Opel from €600 million to €1.9 billion – more than half the €3.7 billion it now says it needs to turn around its European operations.
The US carmaker said it would put up the additional amount in the form of both equity and loans.
The move will reduce the total amount GM is seeking from Germany and four other countries. – Copyright The Financial Times Limited 2010
