Return to Transcripts main page
Rick's List
Toyota Disputes Runaway Prius Claim; Health Care's Crucial Week
Aired March 15, 2010 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
RICK SANCHEZ, HOST (voice-over): Here's what's making THE LIST. Remember the out of control Prius driver?
(BEGIN VIDEO CLIP)
JAMES SIKES, PRIUS DRIVER: I kept hitting the brakes, and it wasn't slowing down at all.
(END VIDEO CLIP)
SANCHEZ: It's looking like his story doesn't check out. And Toyota has called a news conference, coming up shortly.
Glenn Beck assails churches that preach social justice and "TIME" magazine asks, "Why does Glenn beck hate Jesus?" He makes THE LIST.
John Edwards' mistress does a spread on "GQ," revealing with a capital "R."
Robert Gibbs goes into Republican turf, FOX News, to announce health care will be the law of the land. And the GOP tells Candy Crowley --
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER (R-OH), MINORITY LEADER: And we're going to do everything we can to make it difficult for them, if not impossible, to pass the bill.
(END VIDEO CLIP)
SANCHEZ: THE LIST you need to know about. Who's today's most intriguing? Who is making news on Twitter? It's why I keep a list -- pioneering tomorrow's cutting-edge news, right now.
(END VIDEOTAPE)
SANCHEZ: Hi, everybody. I'm Rick Sanchez.
Topping THE LIST right now -- remember this Prius? You see it right there on the highway, right? It had to be stopped by police after it was said to be out of control in reaching speeds of 94 miles an hour. Was he, James Sikes, the driver, telling the truth about this incident? I ask you that question, because government engineers and engineers from Toyota are now saying that they have checked out his story, examined his car, tried to duplicate what he says happened, and they can't. They say his story, quote, "does not appear to be feasibly possible, both electronically and mechanically." Another engineer looking into the case says the story "very, very, very remote."
We're expecting a news conference now from Toyota. We expect it's probably going to happen within the next 20 or 25 minutes. In the meantime, I want to set this up for you. Here is Susan Candiotti with set-up.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): A draft congressional memo seems to take some steam out of Jim Sikes' self- described wild ride in his 2008 Prius. It even had 911 and the California highway patrol running to go his rescue.
SIKES: The gas pedal felt kind of weird, and it just went all the way too fast.
CANDIOTTI: Sikes relived it for our Ted Rowlands.
SIKES: I was in the 80s somewhere. And I kept hitting the brakes, kept hitting the brakes, and it wasn't slowing down at all. It was just accelerating.
CANDIOTTI: Yet after two hours of trying to duplicate what happened on Sikes' own car and another exact model, federal investigators and Toyota came up short. A draft memo says, "Every time the technician placed the gas pedal to the floor, and the brake pedal to the floor, the engine shut off, and the car immediately started to slow down." Experts say that's a key safety feature of the car.
So, if Sikes says the accelerator was stuck, and he was pressing hard on the brake, why didn't his car slow down?
PETER VALDES-DAPENA, SENIOR WRITER, CNNMONEY.COM: Maybe what was happening was not that his engine was overpowering the brakes, but his brakes were incapable of at that point of overpowering anything.
CANDIOTTI: The same memo says his brakes were worn out. It doesn't say whether they were that way before or after the incident. A Toyota told congressional staff, "It doesn't appear to be feasibly possible, both electronically and mechanically, that his gas pedal was stuck to the floor and he was slamming on the brake at the same time."
What does this mean for Jim Sikes?
VALDES-DAPENA: It is possible that he's liar. It is also possible that he simply misunderstood what was happening with his car.
CANDIOTTI (on camera): Sikes says he is sticking to his story and adds that his lawyer will have more to say about this later today.
Susan Candiotti, CNN, New York.
(END VIDEOTAPE)
SANCHEZ: All right. You just heard what Susan said right there, that we're going to be hearing from the lawyer sometime today. Well, this is today. And just a little while ago, the lawyer came out and made his own statement, the fellow who represents Mr. Sikes.
Here's what he said to say.
(BEGIN VIDEO CLIP)
JOHN GOMEZ, JAMES SIKES' ATTORNEY: The notion that they weren't able to replicate it in this particular case really tells us nothing. They haven't been able to replicate a single one of these.
UNIDENTIFIED FEMALE: Are you going to sue?
GOMEZ: No, definitely not. Mr. Sikes has no interest in suing.
(END VIDEO CLIP)
SANCHEZ: OK. So here's where we are with this story. And this one of the big reasons we've put it right at the very top of our list today.
Toyota says that they're going to be coming out in about 20 minutes, and they're going to have a news conference, and they're going to answer some of these questions that have been made not just by Mr. Sikes, but by others, as well. We will cover that fully for you as soon as it begins -- again, roughly in about 20 minutes, give or take a couple of minutes.
Here's another big story. Now to the item at the very top of the list of the Obama presidency: health care.
This could be make-or-break for health care this week. This is a live look inside the House Budget Committee. This meeting is just getting under way as the House Budget tries to get the process going, anyway.
Are the votes there yet for House Democrats? They're scrambling, as you know, to get 216 votes needed to pass the bill. House leaders say they're going to try and have it by the end of this week.
President Obama is back on the road today. He is selling the plan in the battleground state of Ohio, and wait until you hear -- huh, wait until you hear who he took with him.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I don't know about the politics, but I know what's the right thing to do. And so, I'm calling on Congress to pass these reforms -- and I'm going to sign them into law! I want some courage! I want us to do the right thing, Ohio!
(END VIDEO CLIP)
SANCHEZ: All right. Flying to Cleveland with President Obama: Congressman Dennis Kucinich. He is the liberal Democrat who told me on the air just a week and a half ago that he will vote "no" on health care, because it doesn't contain the public option, right? He said it again yesterday.
So, the obvious question is: is the president trying to twist his arm? Well, interestingly enough, he smiled when someone in the crowd used some strong language, trying to encourage Kucinich to change his mind while he was there in the presence of the president and the crowd.
And who else is doing some arm-twisting on this day? This is important. Vice President Biden is working over Democratic Congressman Steve Driehaus. He's in Cincinnati where he's raising money for Steve Driehaus. Driehaus may vote over concerns on abortion language.
So, here's the vice president campaigning for someone who's saying he's not going to go along with the president and the vice president's plan -- interesting scenario.
(BEGIN VIDEO CLIP)
BOEHNER: We're going to do everything we can to make it difficult for them, if not impossible, to pass the bill.
(END VIDEO CLIP)
SANCHEZ: The GOP will do all that it can to oppose the president. They are saying so while the president's main man goes into the teeth of the Republican territory, FOX News, to say that the bill will pass within the next week.
Showdown is set, folks. And we've got both sides covered for you. That is next.
Also, John Edwards' mistress reveals herself in "GQ" magazine, both physically and spiritually reveals herself. This goes right to the top of our "Wow List," and it's coming just a little bit later.
(COMMERCIAL BREAK)
(BEGIN AUDIO CLIP)
DENNY, CALLER FROM TEXAS: Hey, Rick, this is Denny from Texas. Child care reform will not work without jobs. Without jobs, no one can afford health care. Jobs should be first for the nation.
(END AUDIO CLIP)
SANCHEZ: So, what are Democrats and Republicans saying, the folks that we elect? Well, they tweet, we collect the tweets, and we share them with you. That's why it's called RICK'S LIST and we do this for you every day.
Let's check in on two of them real quick for you now.
First of all, Representative Shimkus, he's a Republican from Illinois. He said since the -- he says, pardon me, "Since the very first version of a health care bill was introduced, I've received 11,500 contacts from constituents about it, overwhelmingly against the government takeover."
And now, let's go to a Democrat. This is Representative Hank Johnson. He's a Dem from Georgia. He has the opposite view. He says, "It's time to unite behind health care reform. It's time to deliver for the American people. This is the week."
So, the spin is coming from both sides. And we'll share it with you from time to time.
All right. Time now to look at THE LIST of politicians that are making the most noise.
After delaying his overseas trip this week for last-minute lobbying, we told you the president is on the road again today. That's three almost in a row, folks. He's looking for support, this time in suburban Cleveland.
He's hammering two issues. One, with seniors in the audience, he's telling them that his plan will not impact their Medicare. And then he told his audience in general, that just because you have insurance, it doesn't mean that you may not get hit if you keep the status quo.
(BEGIN VIDEO CLIP)
OBAMA: For so many people, it may not be a problem right now, but it's going to be a problem later, at any point. And even if you've got good health insurance, what's happening to your premiums? What's happening to your copayments? What's happening to your deductibles? They're all going up. That's money straight out of your pocket.
(END VIDEO CLIP)
SANCHEZ: I should tell you, Democrats are racing this week to try and sway undecided members in Congress. While Republican minority leader, John Boehner, told our Candy Crowley this weekend, that he is going to pull out all of the stops to block this thing.
(BEGIN VIDEO CLIP)
BOEHNER: I don't have enough votes on my side of the aisle to stop the bill. But I, along with the majority of the American people who are opposed to this, can stop this bill. And we're going to do everything we can to make it difficult for them, if not impossible, to pass the bill.
(END VIDEO CLIP)
SANCHEZ: Meanwhile, White House officials were all over television this weekend. They're promising the House will pass the plan sometime this week. But nothing seemed more definitive than Robert Gibbs. We went right into the teeth of the opposition. He went on FOX News to say that health care will pass.
(BEGIN VIDEO CLIP)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: This time next week -- this time next week -- this time next week -- this time next week, you all will be talking about health care reform, not as a presidential proposal, but as something that will soon be the law of the land.
(END VIDEO CLIP)
SANCHEZ: Also making the rounds, Republicans like Lindsey Graham. He's warning, in the Senate, if Democrats use the controversial procedure requiring just 51 votes, it's going to come back to haunt them, he says.
(BEGIN VIDEO CLIP)
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: You're going to have a hard time convincing Democrats or Republicans to do the hard things, because you have poisoned the well. There will be a price to be paid to jam a bill through, the American people don't like, using a sleazy process.
(END VIDEO CLIP)
SANCHEZ: The president, by the way, is now set to leave on his overseas trip Sunday. House leaders have warned members to be prepared to work through the weekend if they have to.
(BEGIN VIDEO CLIP)
SEN. CHRIS DODD (D), CONNECTICUT: Prices that have led to so much economic carnage in the lives of middle-class Americans was caused by the longstanding failure of our regulatory structure to adapt to our changing financial systems and prevent the sort of dangerous risk- taking that led us here.
(END VIDEO CLIP)
SANCHEZ: If you watched "60 Minutes" last night -- in fact, even if you didn't watch "60 Minutes" last night, you should be fuming mad today. Wall Street seems to be getting everything that it wants, and you and I are getting the shaft. Where is the reform that we were promised on Wall Street? That's important. That's next.
(VIDEO CLIP)
SANCHEZ: Can you believe this? What happens when a cop pulls over a driver and gets hit by a driver he maybe should have pulled over in the first place. I'll put it together for you and we'll be right back.
This is THE LIST, and we're scrolling. I'm Rick Sanchez. (COMMERCIAL BREAK)
SANCHEZ: The Toyota Motor Company has been embroiled in a lot of speculation as to whether or not its cars just speed out of control. Well, guess what? In about 15 minutes or so, maybe a little less, maybe a little more, they have called a news conference, which you are going to watch right here, where they're going to be answering some of those charges.
So stay tuned. We'll all watch this live, as it happens. And we'll have some guests that we have booked around it, as well.
Time for the "Yellin's List," and today, it's topped by the one issue that Americans are starting to get really riled up about.
(MUSIC)
SANCHEZ: We almost went down the tubes 18 months ago, right? Our entire economy almost went down the tubes. So, what's been done to make sure that that doesn't happen again?
Surely, they have put all the things that they have promised they would put back in to make sure that our country can't melt away as it seemed to almost do a year-and-a-half ago.
Jessica Yellin is on Capitol Hill, where she's been attending Senator Dodd's news conference, where he unveiled his latest legislation to try and make sure we are protected as opposed to the fat cats on Wall Street.
And, Jessica, what did you learn?
JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Well, the bottom line here, Rick, is that 18 months later, nothing has changed.
SANCHEZ: Huh!
YELLIN: So, they're trying now to begin to move a bill in the Senate. I mean, it's pretty remarkable. We're just at the starting line for the Senate on this.
And there is no Republican support for the bill Chris Dodd has. He needs to get at least one Republican signed on for it to ever pass. And already, both sides are going to start taking aim at this bill because there are many things in it Democrats don't like, many things Republicans don't like, and Dodd is stuck in the middle.
SANCHEZ: Well, let me just stop -- let me just stop you real quick, because I have to ask the question that people at home were probably thinking about.
YELLIN: Yes.
SANCHEZ: So, when you say nothing has changed, you mean the credit default swaps could still be pulled off, you mean companies could get AAA ratings that don't deserve AAA ratings, like we saw done in the past. You mean regulators could still look the other way, because they're more interested in getting a really cushy job on Wall Street than actually looking at the people on --
YELLIN: Oh, that doesn't --
SANCHEZ: All those things are still there.
YELLIN: Yes. Bottom line, yes. The difference people will say is, you know, everyone is on their guard now. So, attitudes have changed.
But in terms of major rule-writing, making our government crack down on these practices? No. In a big sense, nothing has changed. And that's what they're trying to do here, members of Congress. But as you can imagine, it is getting bottled up in congressional fighting.
SANCHEZ: It's almost like, you know, why don't they just give each American a hammer, and is they can hit themselves over the head with it?
No, I'm serious. This is crazy. Now, there's something called the Consumer Protection Agency.
YELLIN: Yes.
SANCHEZ: When I was reading about civics and stuff in college and in high school, and as I read -- the Consumer Protection Agency is there to protect you and me --
YELLIN: Right.
SANCHEZ: -- from people like that. But I understand, and I don't know what Mr. -- Senator Dodd said, but I understand the Consumer Protection Agency is still a part of the Federal Reserve.
YELLIN: Let me --
SANCHEZ: The Federal Reserve protects banks, right?
YELLIN: Right.
So, let me back up a little bit. Chairman Dodd is trying to get things moving. So, he's come out with a proposal today.
Right now part of the problem, Rick, is that there is no Consumer Protection Agency, nonexistent. That's part of the reason we had these subprime mortgages with adjustable ARMs that people should never have been sold, being sold by the thousands across the country. There is no one looking over the shoulder of these banks and mortgage companies saying, uh-uh, that's a deceptive practice.
So, this agency is designed to say, we're not just going to regulate the banks. We're going to look at the products they're selling regular Americans, your credit cards, your mortgage, your payday loans, to make sure that "A," they're fair, and "B," they're not going to put the entire economy at risk. Now, even the idea of creating such a thing is very controversial, because there are some, mostly Republicans, who say that it could basically clog up the business system, and that it will slow down business, and that regulations are already in place that can do this -- they just need to be enforced.
SANCHEZ: Well, you know what else is interesting that is a conflict with what we were promised?
YELLIN: Yes.
SANCHEZ: And I think that's the thing that we need to talk about, you and I. By the way, Jessica Yellin and I will do this segment for you at this time every single day. We call it "Yellin's List."
We were told that part of the problem, and part of the reason we had to save these companies is because they were, quote, "too-big-to- fail." I've been looking lately at what is being written about some of these Wall Street firms that have survived. They're as big, if not bigger as their predecessors, and part of the reason they're bigger is because the government came in and helped them become bigger.
So, we've got more too-big-to-fails on top of the too-bigs-to-fail that we had had before.
YELLIN: Exactly right. They -- some of these big banks that were too-big-to-fail swallowed up some of the failing banks to keep those banks alive and now --
SANCHEZ: With government -- with my money, by the way.
(CROSSTALK)
YELLIN: -- and pregnant (ph). You know, I mean, they're huge with government taxpayer money.
SANCHEZ: Right.
YELLIN: Now, this proposal does address that. What it would do is set up a whole new council of like the treasury secretary and regulators that exist already in the government, put them all together, and let them monitor these big companies, these big -- too- big-to-fail institutions, and note if they're getting too big, make them have more money in reserve there so that they are not over -- you know, taking too many risks.
And then also, create the power to unwind them, which we basically didn't have. There was no way for an AIG to be taken apart before. That's why we had to bail it out with billions and billions, the government thought.
So, this new council would create the power to unwind these things so we don't get an AIG again. And this is the best part -- you're going to like this, Rick. I know you'll like this.
SANCHEZ: OK. I'm ready. YELLIN: They're also making the banks pay into their own fund so that if they do need a bailout, that fund will be used for the bailout. So it's from bank fees, not from taxpayer dollars -- in the future.
SANCHEZ: That's interesting.
Tomorrow, I'm going to ask you whether or not they can find people who somehow don't have a stake in this, that can look at this problem and help come up with solutions -- because I get a feeling, every time we talk about this, most of the people who are providing the answers, et cetera, et cetera, are people with a stake in the game --
YELLIN: Yes.
RICK: -- are people who come from there. I mean, think about everything that we've done in the last year-and-a-half.
You're great, Jessica. Great conversation. Good information. I'm glad people were able to listen to what you reported from that hearing today.
Meanwhile, take a look at this.
(BEGIN VIDEO CLIP)
SIKES: I was in the 80s somewhere. And I kept hitting the brakes, kept hitting the brakes. And it wasn't slowing down at all. It was just accelerating.
(END VIDEO CLIP)
SANCHEZ: Yes, that's what he says. But now we're expecting a news conference from Toyota, any moment. And suffice it to say, they're fighting back against people who say that their cars are speeding out of control, including that gentleman you just heard right there, because there's now questions about his story. We'll bring you the questions.
Also, should the wife of a Supreme Court justice come out publicly against the president of the United States? The wife of a Supreme Court justice. It's an intriguing question, and it makes the intriguing list today.
That's next. Stay right there. We'll tell you who she is.
And then why is Glenn Beck causing such a furor among Christians? We'll tell you that, as well, as THE LIST scrolls on.
(COMMERCIAL BREAK)
SANCHEZ: Time now for the most intriguing person in the news today. This is a woman who is not a political figure. But she's taking a very public position against the president of the United States. And guess what? Her husband is a Supreme Court justice.
(MUSIC) SANCHEZ: She has started her own tea party branch. She is, quote, intrigued by Glenn Beck, loves Rush Limbaugh, refers to the president of the United States, his administration, as a hard-left agenda.
Usually, the wife of a justice, a Supreme Court justice, would not take such a public position. But that does not stop Virginia Thomas, who is publicly, if not downright, aggressively taking on the left, taking on the president, and fighting for all causes from the right.
And that is what makes Virginia Lamp, the wife of Clarence Thomas, one of the most intriguing persons in the news today.
(MUSIC)
SANCHEZ: On the list you don't want to be on. Glenn Beck -- for assailing Christian churches that preach social justice. "TIME" magazine is now asking, "Why does Glenn beck hate Jesus?" We'll drill down on that for you. That's ahead.
Also this:
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Yes, Rick, where we are here in Fort Lee, the excessive winds that are, at times, in excess of 60 miles an hour make it difficult to even remain standing at the time.
(END VIDEO CLIP)
SANCHEZ: So, why are you standing at the time? I'm going to tell you what's going on with the weather with some funny pictures.
Get your dancing shoes on, folks. We're heading for "Fotos del Dia."
(COMMERCIAL BREAK)
SANCHEZ: You heard Mr. Sikes saying that his Toyota sped out of control? Toyota has now called a news conference. We're going to it live. Here it is.
MIKE MICHELS, V.P. COMMUNICATIONS, TOYOTA MOTOR SALES: -- Gary and Greg Kaminsky, who are Toyota owners of El Cajon.
Today we'll share preliminary findings of Toyota's technical investigation into an alleged incident of unintended acceleration involving a 2008 Toyota Prius driven by Mr. James Sikes. This incident occurred last Monday and was dramatically covered by the national news media.
During a 24-minute 911 call, the operator repeatedly advised the driver to engage neutral and shut the vehicle power off. Contrary to early reports that the patrol car physically stopped the Prius by positioning it against the front bumper, the highway patrol has confirmed the vehicle came to a stop on its own.
The examination and testing of Mr. Sikes' Prius was performed by Toyota engineers and technicians on Wednesday and Thursday of last week at Toyota of El Cajon. Experts from the National Highway Traffic Safety Administration also conducted their own investigation. And a representative of Congressman Darrell Issa's office also joined in the process.
And while there is more detailed analysis to be done, we were able to assess certain testing and what was observed. Our engineers conducted a methodical examination of major vehicle systems, and examples included the accelerator pedal assembly, the brake assembly, gasoline and electric drive train components, the on board diagnostic systems, and other components relative to the incident.
Individual parts were tested, and the vehicle was also extensively test-driven. Toyota continues to analyze the findings and data and our full investigation is not finalized. However, some findings and observations can be provided. The accelerator pedal was tested and found to be working normally with no mechanical binding or friction. And it should be noted the Prius is not subject to recall for sticking pedals.
The front brakes showed severe wear and damage from overheating. The rear brakes and parking brake were functional. The push button power switch worked normally, and shut the vehicle off when depressed for three seconds as a 911 operator had advised the driver to do.
The shift lever also worked normally, and neutral could be selected. The neutral position is clearly marked, and can be easily engaged by moving the lever left to the "N" position.
There were no diagnostic trouble codes found in the power management computer, nor was the dashboard malfunction cater indicator light activated.
The self-diagnostic system did show evidence of numerous, rapidly repeated on and off applications of the accelerator and the brake pedal. These normal diagnostic capabilities are used by technicians for repairing the vehicle and are not related to the event data recorder, which was not activated because there was no crash.
After examination of individual components, the brake systems were replaced, and the vehicle was taken for an extensive test drive, simulating the incident that occurred Monday, during which the brakes were observed to be functioning normally.
Now, during the testing, the brakes were purposely abused by continuous, light application in order to overheat them. The vehicle could be safely stopped by means of the brake pedal, even with the overheated brakes.
Now, it's very important to note that the Prius hybrid and other hybrids have a self-protective function that acts as a form of brake override. If moderate brake force is applied at the same time that the accelerator pedal is depressed, roughly more than halfway, the hybrid system engine is cut off, fuel is cut off to the gasoline engine. Now, as you may know, hybrid systems use electric motors for power, and these motors switch back into generators in order to slow the car down, which we call regenerative braking. The vehicle cannot break and power at the same time, it can't power and brake the vehicle at the same time.
The system shuts off general power to prevent damage, but the conventional brakes, hydraulic, mechanical brakes, are available to stop the car.
Now, the system was tested under driving conditions and found to be functioning normally, indicating that if the accelerator pedal was stuck, pressing the brake pedal would have resulted in dramatically reduced power to the wheels.
And later today, we have some Priuses available here for you to try this for yourself with some professional drivers to demonstrate, as well as some of the other functions of the hybrid power train.
While our analysis is not finalized, Toyota believes there are significant inconsistencies between the account of the event of March 8th and the findings of this investigation. As I mentioned, this self-protective system was found to be working as designed, and would have easily stopped the vehicle.
Now, separately, it is our understanding that NHTSA is continuing its analysis, and, of course, Toyota will cooperate with any requests the agency may have.
Since the resent publicity regarding recalls, claims of unintended acceleration have inexplicably skyrocketed. This is an issue of complex and great importance, but rushing to judgment in the absence of facts and balance does the public a disservice.
To say this incident was sensationalized would be an enormous understatement. Jumping to conclusions is dangerous, and investigations should be allowed to take their course.
Toyota takes all verifiable complaints seriously, and we'll investigate them quickly by deploying teams of engineers and technicians to examine the vehicle and share their findings with safety officials.
I would also like to set the record straight recording news reports that Mr. Sikes had been turned away from the dealership when he brought his car in for a recall. There is no information to suggest that Toyota of El Cajon did anything but act properly in its handling of the customer.
And now I would like to introduce Mr. Gary Kaminsky, co-owner of Toyota of El Cajon to give some of his comments. Gary?
GARY KAMINSKY, CO-OWNER, TOYOTA OF EL CAJON: Thanks, Mike. On behalf of our entire team of Toyota of El Cajon, I would like to thank you all for being here, and for considering the facts you have just heard. First, I want all of our customers and our community to know that nothing is as important to us as the safety of Toyota owners and the public. We take every possible step to assure that every car or truck that leaves our driveway is as safe as possible.
Contrary to what has been reported, we never turned Mr. Sykes away for any recall work that needed to be done on his vehicle. He came in after receiving a consumer advisory notice in the mail regarding floor mats.
We inspected his vehicle, we serviced it, and we made sure that the floor mats were properly installed and secured. We also put his vehicle identification number into Toyota's database to make sure that nothing else was need on his vehicle.
There have also been reports that Mr. Sikes had been trying to get in touch with the dealership and that nobody was getting back to him. The day after the incident took place, my brother and I, our customer relations manager, and a representative from Toyota met with Mr. Sikes and let him know that we were there for him for whatever he needed.
We also saw him a few times the next day, when he was at our store for the investigation.
There has been an avalanche of bad news regarding Toyota in the media lately. In my opinion, some of it may be valid, but most of it is not, and perspective and balance are lacking.
Media attention and speculation that makes people unnecessarily concerned about their vehicle is dangerous because it leaves them ill- informed about the very low risk of driving.
According to Carnegie Melon University risk experts, walking one mile or using your cell phone while driving a car is riskier than driving a Toyota that has been recalled.
The idea of unintended acceleration, whatever the cause, can be very scary. I myself tried to press my gas pedal probably 30 different times in my car, and I shifted from drive to neutral repeatedly just to get a feel of how it worked. I think once you do that, it takes the fear away are and shows you that you can control your car pretty easily.
My whole family drives Toyotas. I have two little girls. When they grow up, they'll be driving a Toyota. And even right now I would be fine if they were driving a Toyota that was on the recall list without the recall work being done.
I would like to say thank you to all of our customers who have sent us e-mails, letters, who have called us and sent messages to us, letting us know how extremely loyal they are to Toyota. Even when the news has been at its worst, they have been there standing beside us, and it's meant the world to us. Thank you very much.
MICHELS: Thanks, Gary. Now, I'd like to bring Jeff Braken and Bob Waltz up, if you could stand to the side here, and we would be happy to take your questions for a short time. And then after that, we will start the demonstrations of the brake override system. So first question, sir.
QUESTION: Who is who?
MICHELS: I'm sorry. This is Bob Waltz. Jeff Braken is on your left.
QUESTION: How is -- (inaudible)
How does Toyota explain the wear that was found on the vehicle Mr. Sikes drove? And did your inspection find the type of wear found was consistent with the way that one would use brakes?
MICHELS: As I mentioned, the diagnostic system captures a lot of information, one of which was rapid and repeated on and off activation of the brake and the accelerator.
The brake override system would have required him to -- if he hit the brakes, he would then have to release the accelerator or somehow the car would have to, you know, reaccelerate. So he would have to release the brake. So that on and off action would have been required to keep the car going at any kind of high speed.
It is also fairly easy to overheat brakes by just touching them lightly and continuously, where they would build up a lot of heat.
Bob, I wonder if you -- did you have any more thoughts on that?
BOB WALTZ, TOYOTA USA V.P. OF PRODUCT, QUALITY, AND SERVICE SUPPORT: Well, let's clarify. The rear brakes were fine. There was -- the rear brakes were fine. The rear brakes looked like any vehicle that has that kind of mileage. I believe it was 55,000 miles, roughly. So the rear brakes showed nothing.
On the Prius, because of the regenerative brakes, they help recharge the bat trees on the vehicle. So as such there is a little more bias to the front brakes than there are to the rear brakes.
So you can drive that vehicle resting your foot or lightly pumping the brake pedal, and it will not activate the override because it's not applying enough pressure.
This vehicle was driven, and it had numerous applications of the brake pedal. We believe it was the overheating that was caused by observations of it, the seals on the calipers, for example, were melted, which only happens from overheated situations. The brakes were metal to metal in the front.
QUESTION: How do you explain that?
WALTZ: We think that they -- the brakes -- the vehicle was being driven with the front brakes being partially applied.
QUESTION: Lightly?
WALTZ: Lightly. QUESTION: You don't think that the heat -- stood on the brakes, as he said, that caused that kind of wear.
WALTZ: No.
QUESTION: Regenerative braking, which activates automatically, continued to brake the car at the same time the motor is running? Does one have to be in the (inaudible)
WALTZ: No, the brakes and the engine slowing the vehicle down can happen simultaneously.
QUESTION: You say lightly. The brakes seemed to be overheating from light application. Would that have to go on for an extended period of time?
WALTZ: Yes.
QUESTION: And is it consistent with the amount of time he says that he was having problems?
WALTZ: Yes. And it also -- not to interrupt you, but the data that we were able to measure off of the vehicle indicates that the brakes were applied possibly 250 times during that particular ride.
SANCHEZ: There seem to be two trending stories that are coming out of this news conference that we have been following for you. One of them is that we have heard now for the first time what is Toyota's version of events, not the night of the accident or the night when the car was out of control, but rather what this guy's history was with Toyota, that Mr. Sikes had complained he had gone to the Toyota dealership, and that he was upset that he didn't get enough support and service, and that he was upset that they then didn't return his phone call.
The other trend here is that Toyota is now fighting back. They're saying, look, to a certain extent, because of the way the media has covered this story, we're the victims here, and there's a lot of bad information that's going out there to the general public. This is an interesting perspective.
I want to do this. I've got Rick Newman standing by with "U.S. News and World Report." He joins me from time to time whenever we cover stories in the automotive industry. Rick, stand by. I want to hit you with those two issues and what your observations were on this, as well.
And we're going to monitor the news conference during the break. And if we see anything else coming out of there, we'll bring it to you right away.
This is "The List." We'll be right back.
(COMMERCIAL BREAK)
SANCHEZ: Welcome back. I'm Rick Sanchez. Now we're revisiting the number one story on our news list today, and it is all about Toyota. Toyota is fighting back not only against accusations that its cars tend to speed out of control, but specific accusations by this Mr. Sikes, who said it was his Prius that did that to him.
In fact, look at what we're getting now. Let's go to the Twitter board, if we possibly can, Robert. You see the one in the middle there, John? He says, "So it appears that the driver may have had an issue, not the vehicle." All right, that's one of our viewers' take. Rick Newman, what's your take on this?
RICK NEWMAN, "U.S. NEWS AND WORLD REPORT": Well, it kind of feels like we're watching a preview of Toyota's legal defense strategy, doesn't it, for if and when they end up in court, trying to defend some of these cases.
I think you're right, Rick, Toyota is fighting back. We have heard so many apologies from Toyota, from the executives in front of Congress and in other formats.
And you almost get the feeling watching it that people inside Toyota have just been chafing for the opportunity to come out and say, look, our cars are the no nearly as bad as everybody is making them out to be, and it's almost -- I mean, yet another irony of the situation is that it was a so-called run-away Prius couldn't say incident.
SANCHEZ: Well, that's just --
NEWMAN: -- actually giving Toyota the opportunity to defend itself.
SANCHEZ: That's what I was just going to say. Interesting you picked up on that. I think this Jim Sikes character has given Toyota -- and that's not to say that his story may not be true, but because of the questions surrounding his case -- and it was interesting they brought in this GM from the El Cajon Toyota station, where he comes out and says, look, we did everybody he wanted us to do and did return his calls, almost as if to set up the story that goes something like this -- Jim Sikes was mad at Toyota because of what he perceived to be the treatment he got when he took his Prius in, so he made up this story to make Toyota look bad.
They didn't say that, but that seemed to about what they were intimating, wasn't it?
NEWMAN: Yes. They cast doubt on his story, again, like it were a legal strategy. They brought out a couple of Toyota executives who are kind of doing this folksy thing. One of them is not even wearing a tie. The spokesman, the dealership owner is talking about driving his two little girls around in Toyotas with no worries.
This is different from what we've seen from Toyota see far and it's almost -- you know, we all are -- recalling balloon boy, right, that hoax. We were all sympathetic towards that family and it turned out to be a hoax. And that sort of cynicism among the public, I think, is working in Toyota's favor probably right now. SANCHEZ: Let me ask you question about what Toyota is doing, because it seems to me that these officials that they brought out before the cameras today seem to me to be more sincere, more genuine, more honest.
I know those are all valuated terms. What do I know? I'm just judging as a person -- compared to what they did before, which seemed like it was almost happenstance-ish, afraid, defensive. Something's going on here, right, Rick?
NEWMAN: Yes. In those Congressional hearings, those were kind of been the definitive moment up to now. And those were very awkward for Toyota. There's a huge culture gap, and the CEOs from Japan, their remarks were translated. We had the CEO of the company saying he's not familiar with the presentations in Washington.
And you had members Congress sort of flummoxed by the whole thing. Everyone was scratching their heads. I don't think that was a convincing performance.
I don't know if Toyota deliberately changed its strategy. I think partly they had -- it's a very opportunistic response because they had this case fall into their hands that favors them, because it appears, just taking Toyota at its word, it appears the facts of this case support Toyota and not the driver.
SANCHEZ: But it -- can this -- can this be definitive that Toyota's wrong and Mr. Jim Sikes is -- pardon me, that Toyota is right and Jim Sikes is wrong? Or does it even matter? Does it have to be definitive?
NEWMAN: I don't think it can be definitive because each side is basically trying to prove a negative at this point. Toyota has to prove there was not a problem, a defect in the car and that's almost impossible to do. And now the driver, Mr. Sikes, has to prove that he was not faking it.
So this is really a matter of where opinion fall? That's really what matters here.
SANCHEZ: His wife, by the way, is now being interviewed. She's saying, look, this is unfair. We've been cast in this horrible light since this thing. We wish it never had happened. My husband is not lying.
Now, Toyota came out today and made a very important point. They said reports by the media that this car was so out of control that it had to be stopped by a trooper, a California highway patrol officer with his car in front of it, is completely untrue. He says the car came to a stop all by itself.
And just late this afternoon, the attorney for Mr. Sikes gave this comment to the media. I'm going to share it with you, Rick, and share it with our viewers just getting home. Here it is.
(BEGIN VIDEO CLIP) JOHN GOMEZ, JAMES SIKES' ATTORNEY: The notion that they weren't able to replicate it in this particular case really tells us nothing. They haven't been able to replicate a single one of these.
QUESTION: Are you going to sue?
GOMEZ: Definitely not. Mr. Sikes has no interest in suing.
(END VIDEO CLIP)
SANCHEZ: What about the possibility that Toyota rigged to gain in their favor by taking the car and making sure that every test they found was good for them?
NEWMAN: If Toyota did that, it would be really foolish, because we've had several instances so far where Toyota has said, no, we're sure about something, and then documents come out after the fact and show maybe Toyota is not so sure.
So it would really be devastating to Toyota if they were trying to game the system here and then something comes out. Which I think --
SANCHEZ: But they couldn't, right, because they had the National Transportation Highway Safety officer there as well, or --
NEWMAN: That's right.
SANCHEZ: Hold on. I'm a skeptic. Is there a possibility those guys would do a wink and nod with Toyota because they don't want to hurt them?
NEWMAN: It becomes kind of a house of mirrors, doesn't it, Rick?
But what's Toyota really trying to do? For the most part, Toyota's not trying to rebut one case. They need to regain some credibility and boost sales again. Comes at a time when Toyota is doing a lot of other things to get customers back in. They've got a new set of incentives that actually appear to be working. Toyota sales are up this month.
And Toyota is really working to generate some trust again and give people a reason to buy Toyotas.
SANCHEZ: That it's why I have you on, so you can take us through an industry that you write about daily in "U.S. News & World Report." And by the way, you got a Twitter account. Don't you?
NEWMAN: Yes, Rickjnewman?
SANCHEZ: Rickjnewman?
NEWMAN: Right.
SANCHEZ: We've got you down. You're on the list.
Breaking news now. Let's go to that if we possibly can. This is going on in Houston, I understand. As it's described to me, Angie it's light rail versus bus. At least one person has now been taken away on the stretcher.
Are these live pictures we're looking at? All right, these are live pictures from KHOU, the CBS affiliate there I in Houston, and also our affiliate.
It's kind of hard to make out what's what. Now, that's the bus on the -- on the bottom there, right? Is the train turned over or is that still on the tracks? Only one person, at least, confirmed injured, and they were taken I way on a stretcher, right?
How does something like that happen? Almost like the shot's too tight to be able to discern. Nonetheless, that's the situation. Breaking news as it happens right now in Houston, Texas. We will be following it for you.
What else is going on. Why are three Americans killed in Mexico? And obviously the story there is that they're Americans. What does it say about safety there for Americans? An objective view of that situation, we'll cover it for you.
Also, Rielle Hunter's revealing "GQ" interview, and photos that show more than anyone would have expected. We've just gotten reports that she told Barbara Walters that she's upset with these pictures that have just been revealed of her in "GQ" magazine. We've got the pictures. Wait until you see the spread. Stay right there. We'll be right back.
(COMMERCIAL BREAK)
