Toyota president offers apology as recall over Prius mulled+

TOKYO, Feb. 6 Kyodo -
Toyota Motor Corp. President Akio Toyoda apologized Friday for massive global
recalls of its top-selling models in his first official news conference to
address a spate of safety problems that have pummeled the reputation of the
world's biggest automaker.

Sources familiar with the matter told Kyodo News earlier that the automaker is
considering carrying out a recall in Japan and the United States of its latest
Prius hybrid model over complaints about brake problems, as regulators step up
their probes into Toyota.
''I sincerely apologize for causing trouble and concern to many of our
customers over recalls on multiple models in multiple regions,'' Toyoda said in
a news conference in Nagoya, which was also broadcast live in Tokyo.
But despite the rushed emergency press conference held late in the evening,
Toyoda said the company has not yet reached a conclusion on how to respond to
customers who already own the 2010 Prius model, while adding that instructions
have been issued for prompt action.
The automaker had already been planning to carry out voluntary repairs free of
charge, but sources said it is now in talks with both Japanese and U.S.
regulators and may decide early next week whether to go one step further with a
mandatory recall due to spreading concern among customers.
Japan's top automaker has been facing closer scrutiny on the Prius issue as it
came to light after two previous recalls over faulty accelerator pedals and
loose floor mats that can cause the gas pedals to stick.
In rare open criticism of the automaker from within the Japanese government,
transport minister Seiji Maehara on Friday said Toyota's response to the Prius
issue ''lacked customer focus.''
The 53-year-old president, who is the grandson of the company founder, has
faced heavy criticism for his absence from public view as the recall problems
mounted, but the lack of specifics from his hastily arranged appearance could
trigger further doubts about his leadership.
''Believe me, Toyota's cars are safe,'' Toyoda, who took office last June, said
in broken English.
''As president, I believe what is happening now is a grave problem and we are
in a crisis situation,'' he said. ''My role is to make sure the company
cooperates in a united manner to recover customer confidence.''
Toyoda and Toyota Executive Vice President Shinichi Sasaki, in charge of
quality and customer service operations, said the company will set up a
committee to examine the cause of the recent recalls and ask external experts
to analyze its quality management system.
Subject to the possible recall is the 2010 Toyota Prius hybrid, which was
rolled out in May and remained a top-seller in Japan in January. The automaker
has sold around 170,000 units in Japan and about 100,000 units in the United
States.
On Friday, Toyota sent an official in charge of technology to the ministry of
land, infrastructure, transport and tourism to provide its own analysis of why
problems connected to its complex electronic brake system were occurring.
The company plans to fix the problem by improving the software for the antilock
brake system, which prevents the wheels from slipping when slamming on the
brakes. In Japan, Toyota has already started sending the redesigned computer
software to dealers so they can implement the remedy.
The recall, if launched, is likely to spread worldwide because Toyota had sold
about 310,000 units of the latest Prius model in around 60 countries, including
Japan and the United States, as of the end of 2009. The automaker plans to
implement similar measures in affected areas.
The company is also investigating if there are any similar complaints involving
other hybrid models, such as the luxury Lexus HS250h sedan and the hybrid-only
Sai compact sedan, which employ the same brake system as the Prius.
Toyota officials have said the automaker has already changed the computer
software for models produced since late January and these would not be subject
to the recall.
In a briefing Thursday on the Prius problem, Hiroyuki Yokoyama, Toyota's
managing officer for quality and customer service, said users might experience
a time lag before the brakes kick in but the problem can usually be solved by
stepping harder on the brake pedal.
The automaker plans to provide the improved computer software to customers
through its dealers once it irons out details on carrying out a mandatory
recall or voluntary repairs. The process itself is expected to be completed in
half an hour or so once the user has taken the car to a dealer.
As of Friday, 93 Prius complaints had been reported to the Japanese transport
ministry, including five accidents involving property damage.
On Thursday, the U.S. National Highway Traffic Safety Administration said it
had launched a formal investigation into the Prius after receiving 124
complaints from consumers about the gas-electric hybrid, including four reports
of crashes.
Toyoda said the company will cooperate fully with U.S. regulators and promised
to place top priority on putting customers first.
The Japanese transport ministry is also examining if there were any problems
with Toyota's response to the complaints, although the automaker denies any
coverup.
The probe on the Prius came after Toyota carried out a safety recall of some
5.55 million vehicles in the United States and Canada in November to fix gas
pedals getting stuck under loose floor mats and causing sudden acceleration.
A more recent recall in January over faulty accelerator pedals, involving
models such as the popular Camry and Corolla, has quickly spilled over from
North America to Europe, China, Latin America and other parts of the world.
A day earlier, the company said it is expecting to return to profit on the net
level in the current business year on the back of a gradual recovery in the
global auto market.
Its upbeat outlook has mostly been clouded by the anticipated costs of carrying
out the recalls and the expected heavy blow to sales from the erosion of its
carefully cultivated brand image.
''I hope the return of Toyota to profitability will lead to a boost for
Japan,'' Toyoda said. ''Before we worry about sales figures, we want to first
put top priority on removing customers' concern and recovering their trust.''
==Kyodo
2010-02-06 00:06:06


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