Toyota Hybrid Cars and Legal Issues

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Toyota Hybrid Cars and Legal Issues Introduction Automobile industry is a faster growing industry nowadays than any other industry. Most car manufacturers face the challenge of providing the best quality products to remain competitive to retain or regain market share during this tough economic times. Every organization has the opportunity to make more profit than their competitors do by improving delivery method and its impact on the company’s turnover. Toyota Corporation has implemented different plans and techniques to remain competitive and make profit. One of the innovative plans Toyota Corp. created is the Prius. The Prius brought about a major revolution in car manufacturing industry, and opened a place in the market…show more content…
Customers have experienced inconsistent brakes on rough or slick road surfaces. The problem with the brake pedal may increase the risk of crash, for the vehicle stopping distances may increase relative to a customer’s expectation. Toyota has been the top player in the hybrid car segment but the fact that Prius and other hybrid models will be a part of the substantial recall significantly dents its image. Intellectual Property Protection/Patent Infringement In 1994, Toyota was sued by Paice, LLC of infringing a patent belong to Paice, LLC. Paice founder Alex Severinsky, a Soviet engineer and immigrant patented a system for powering high-voltage gas- electric hybrid car (Decker and Ohnsman, 2010). Toyota has been using Paice system since 1997 without permission or payment. Severinsky, 65, has sought royalties from the automaker (Decker and Ohnsman, 2010). The Paice patent covers a way to supply torque to a car’s wheels from both and electric motor and internal combustion engine using a combination of high voltage and low current. Toyota which was found to have infringed the patent in an earlier case, had said its hybrid vehicles are the result of its own research and asked the US Trade Commission to deny Severinsky’s latest claims. The U.S International Trade Commission (ITC) is an independent agency set up to protect U.S.

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