Even Uncle Sam can get caught between a rock and a hard place. We’ve seen evidence of that this week during congressional hearings on Toyota’s vehicle safety recalls.
Because the federal government oversees traffic safety, the Japanese automaker was called to answer questions on how safety issues and recalls have been handled.
Fair enough.
Toyota is not facing anything different from what other automakers with similar problems have experienced through the years. This time, though, there is one big difference: The government has a conflict of interest in that it effectively owns two American automakers, Chrysler and General Motors, after taking substantial stakes in those companies last year during the recession.
Sure, Uncle Sam didn’t want to become the owner of two car companies. The act was a desperate response to a desperate situation. But watching congressional leaders grill officials from Toyota – a direct competitor of the government-owned automakers – I couldn’t help but see America’s government in a strange and uncomfortable position.