At the beginning of 2010, Toyota had to recall millions of cars across the world due to a potential problem with sticking accelerators. This has now been followed by problems with the brakes on the Toyota Prius. Toyota’s president, Akio Toyoda, admitted the company faced ‘a moment of crisis’ and announced he would create a new quality control committee. Toyota estimates that its losses will reach £1.23 billion due to the costs and lost sales from the worldwide recall of vehicles due to faulty accelerator pedals. The recall of the Prius models due to brake issues will make the damage even worse. Toyota had been renowned for its quality, but its reputation has been seriously damaged following the brake and accelerator incidents.
The defence company BAE Systems has admitted to two criminal charges and agreed to pay £286 million to settle US and UK investigations into allegations about the way it had won some of its contracts. The company decided to plea bargain and admit to some of the more minor charges in return to an end to further investigations being conducted. Campaigners against the arms trade were ‘shocked and angered’ that BAE Systems will not have to face a court because of the deal it has done. Under the plea bargain agreement, BAE has paid more than £250 million to the USA, which had accused it of ‘wilfully misleading’ US investigators over payments made to win contracts. BAE has also paid about £30 million in the UK — a record criminal corporate fine — for other wrongdoings. The UK charge is linked to a £25.2 million contract signed in 1999 to supply a radar system to Tanzania.
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