Feb 9th - Toyota Cleared In Probe, will sales accelerate now?

Now that a federal investigation has found that engine electronics played no role in sudden, unintended acceleration of Toyota Motor Corp. vehicles, the focus has shifted to whether the outcome will provide a tailwind for the firm's flagging U.S. sales.

Japan's leading automaker recalled nearly 8 million cars through the end of January last year over the acceleration issue. Consumer concerns over the quality of Toyota cars have largely receded since then, but much damage has been done. Although total U.S. auto demand grew 11% on the year in 2010, the firm's sales there slipped 0.4%.

One reason for the poor performance is that many potential buyers were waiting for updated models to be rolled out, including a revamped Camry compact. But weighing even more heavily on sales was that a significant number of consumers chose to put off purchases until the Department of Transportation came to a definitive conclusion about the causes of sudden acceleration in Toyota vehicles.

For the investigation, the National Aeronautics and Space Administration (NASA), which headed the probe, mobilized its engineers with expertise in such areas as electronic engineering, electromagnetic interference and ergonomics.

That Toyota's electronics control system has been cleared by an organization as respected as NASA is expected to go a long way toward easing consumer concerns about the quality of its cars.

Also, the findings will likely have a major impact on the product-liability suits against Toyota at a California federal district court, because the safety of Toyota's electronics control system is one of the central issues.