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Is Toyota's make-good offer fair?

YOUR WHEELS

November 30, 2005|Ralph Vartabedian, Times Staff Writer

When Samuel Silverman took his green 2001 Toyota Prius to a West Los Angeles dealership Aug. 23, he wasn't sure what had caused the master warning light for the hybrid system to turn on.

While the hybrid car was at the dealership that night, a fire started in the rear compartment near the high-voltage battery and burned through the back seat. The next morning, mechanics discovered the damage, which his insurance company declared totaled.


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Now, more than three months later, Toyota engineers are not sure what caused the fire, although they are still investigating it, according to officials at the company's U.S. headquarters in Torrance.

Toyota has agreed to cover the totaled Prius, although the company has offered a lot less than Silverman claims it would cost to replace. Neither party is disputing the circumstances surrounding the fire, only the reimbursement.

Silverman received the used car from his father, Alan, a retired Voice of America broadcaster who is a big fan of the Prius. That Prius was one of three owned by the family. "I have no lack of confidence in the hybrid system, but I do have concerns about how the service was handled," Alan Silverman said.

The Prius has become an icon of the environmental movement and appreciated by a broad spectrum of consumers. It is highly favored in the entertainment industry and admired by many aerospace engineers for its technology. The auto has performed reliably, despite its many advanced systems.

That's not to say it's perfect, however, because the car's high-voltage battery has had a few glitches. Toyota adopted a special service campaign -- a type of extended warranty that critics sometimes term a silent recall. Under the campaign, known at Toyota as the 40G program, owners of Prius models from 2001 through 2003 were warned that the high-voltage battery could leak electrolyte, the liquid that helps create electricity.

The leaks could occur around the positive battery posts; in high humidity, that could cause the high-voltage battery computer to detect a drop in electrical resistance. If that occurred, the computer would set off the master warning light for the hybrid system.

Toyota had received reports of seven cases of leaking batteries for model years 2001 through 2003, according to company spokesman John Hanson. Beginning in August 2004, it sent letters notifying 48,000 customers about the potential problem. Although Toyota could not say whether more reports of leaks have been filed, it has not heard of any accidents or other fires.

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