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Just as Toyota was engaged in tense negotiations with federal officials over problems with sudden acceleration, the automaker's North American subsidiary donated more than $75,000 to two major political committees.
The U.S. subsidiary of the Japanese automaker donated $50,400 to the Democratic Governors Association in November and December of last year. The company gave $25,000 to the Republican Governors Association in November, having already sent a check for $25,000 in April.
Most of the contributions landed as the car maker began tense discussions with the U.S. Department of Transportation over mounting concerns with random acceleration in several of its models.
Toyota is not allowed to donate directly to federal office holders or candidates. But these contributions were legal. Corporations -- even the U.S. subsidiaries of those with foreign owners -- are permitted to donate to the major gubernatorial fundraising committees, and no limits have been placed on how much they can give.
Still, these donations appear to have been unusual. Toyota does not have a large public footprint when it comes to political giving. There is no report of the company making a similar donation to the governors associations during the prior three years. And the automaker does not have a registered political action committee under its company banner, though foreign-owned corporations can establish and contribute to PACs as long as the PACs are overseen by an American citizen or green-card holder.
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