EXPECT MORE LIKE THIS – AT 11:44 A.M. ET:  Toyota, through its own greed and blunders, has become the butt of jokes.

The company, once the symbol of the Japanese car invasion that was based on quality and cost, is suffering from a serious black eye.  It will take years to repair the damage. 

At the same time, we must be wary of false claims and fast hustles by those seeking quick money, or a way to avoid personal blame for accidents.  There are, after all, millions and millions of Toyotas on the road that apparently have no problems, and are driven without incident.

Consider this story, from Fox News:

The man who became the face of the Toyota gas pedal scandal this week has a troubled financial past that is leading some to question whether he was wholly truthful in his story.

On Monday, James Sikes called 911 to report that he was behind the wheel of an out-of-control Toyota Prius going 94 mph on a freeway near San Diego. Twenty-three minutes later, a California Highway Patrol officer helped guide him to a stop, a rescue that was captured on videotape.

Since then, it's been learned that:

— Sikes filed for bankruptcy in San Diego in 2008. According to documents, he was more than $700,000 in debt and owed roughly $19,000 on his Prius;

— In 2001, Sikes filed a police report with the Merced County Sheriff's Department for $58,000 in stolen property, including jewelry, a digital video camera and equipment and $24,000 in cash;

— Sikes has hired a law firm, though it has indicated he has no plans to sue Toyota;

— Sikes won $55,000 on television's "The Big Spin" in 2006, Fox40.com reports, and the real estate agent has boasted of celebrity clients such as Constance Ramos of "Extreme Home Makeover."

While authorities say they don't doubt Sikes' account, several bloggers and a man who bought a home from Sikes in 2007 question whether the 61-year-old entrepreneur may have concocted the incident for publicity or for monetary gain.

COMMENT:  The rest of the story is equally fascinating.  While it's important for Toyota to acknowledge error and fix cars that are defective, it's equally important for the company to aggressively defend itself against hoaxers.  This is something that another company, Audi, failed to do some years ago when Audis were also said to be plagued by sudden acceleration.  Some of the most prominent cases turned out to be untrue.  It has taken years for Audi to reestablish itself in the United States.

You may be sure that, as you read this, a number of people are planning to get some money from Toyota, and insurance companies, for made-up stories.  That will only raise costs for the rest of us.

March 12, 2010