Toyota chief to outline quality reforms at U.S. hearing on recalls+

NAGOYA, Feb. 19 Kyodo -
Toyota Motor Corp. President Akio Toyoda said Friday he will testify with
''full sincerity'' at a U.S. congressional hearing to be held next week, where
he is expected to outline the company's new quality-boosting initiatives to
erase growing anxiety over the safety of its vehicles.

Toyota's top executive is expected to be grilled by U.S. lawmakers on its
handling of a recent series of massive recalls, coming under fresh scrutiny as
U.S. regulators launched a preliminary probe into power steering troubles of
its popular Corolla models.
''I will be happy to attend. I will speak with full sincerity,'' Toyoda told
reporters in Nagoya near where the company's head office is based.
Toyoda, the grandson of the company's founder, said he will cooperate with U.S.
regulators and work toward recovering consumer confidence, which has been badly
eroded by recent recalls of more than 8 million vehicles worldwide, including
its top-selling models such as the Prius hybrid and the Camry.
''I hope our commitment to the United States and our customers will be
understood,'' Toyoda said.
The decision to attend next Wednesday's House Oversight and Government Reform
Committee hearing followed a formal invitation by its chairman, Rep. Edolphus
Towns, a Democrat from New York.
During the closely watched testimony, Toyoda is expected to explain the newly
outlined quality reforms, including its goal to have on-site inspections within
24 hours of any reported product malfunction in the United States, sources
close to the matter said.
The hearing will examine Toyota's handling of recent quality issues linked with
loose floor mats and faulty accelerator pedals, which could both cause sudden
acceleration.
Toyoda has come under fire after he initially indicated earlier this week that
he would not attend the U.S. hearing during a news conference in Tokyo, but he
apparently decided to attend in a move aimed at putting behind quality lapses
which have rapidly snowballed into a safety crisis in the past few months.
Criticism has been especially strong in the United States, where politicians
and the media have lambasted Toyota for its sluggish response to consumer
complaints and accused the automaker for covering up defects in its vehicles.
''He will likely come under heavy attack, but there are matters only the top
executive can provide an answer to,'' a senior Toyota official said. ''It is
important to obtain an understanding that we have responded in line with the
law.''
During his testimony, Toyoda is also expected to emphasize that there is no
defect to the carmaker's electronic throttle-control system, which some have
suspected as the cause behind unintended acceleration of Toyota and Lexus
vehicles.
But his explanation alone may not be enough to convince skeptical and
disgruntled U.S. lawmakers especially because the automaker still does not have
results from a third-party investigation into the electronic system.
As part of its other new quality reforms, Toyota has said it will appoint a
chief quality officer for every key geographical region including North
America, Europe, China and other parts of Asia to be able respond more quickly
to consumer complaints.
The company also plans to reinforce its information-gathering ability by
expanding the number of technical offices in the United States, which are
currently located only in New York and Los Angeles.
It will install a brake-override system -- which cuts engine power when both
the accelerator and brake pedals are applied -- in all of its newly produced
vehicles worldwide and make active use of ''black-box'' data recorders when a
malfunction occurs.
In Tokyo on Friday, Land, Infrastructure, Transport and Tourism Minister Seiji
Maehara also welcomed Toyoda's decision although he added it was regrettable
that the automaker had initially been evasive about whether its president would
attend.
''I hope Toyota will respond with speed, care and responsibility,'' he told
reporters on Friday.
Toyota Motor North America Inc. President Yoshimi Inaba and U.S. Transportation
Secretary Ray LaHood are also expected to testify before the House oversight
committee.
Adding to Toyota's troubles, a preliminary investigation by the NHTSA, a U.S.
safety regulator agency, launched Thursday will target some 487,000 units of
Corolla models in 2009 and 2010. According to the NHTSA, it has so far received
168 complaints from drivers in which 11 people were injured.
During a recent news conference in Tokyo, Shinichi Sasaki, Toyota's executive
vice president in charge of quality and customer service, did not rule out the
option of issuing a new recall on the Corolla models if the problems pose a
safety risk.
==Kyodo
2010-02-19 22:31:48