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| Toyota took 'too long' on recalls | Toyota took 'too long' on recalls |
| (9 minutes later) | |
| Toyota has admitted it took "too long" to deal with safety issues which led to the recall of 8.5 million vehicles worldwide. | Toyota has admitted it took "too long" to deal with safety issues which led to the recall of 8.5 million vehicles worldwide. |
| James Lentz, head of Toyota in the US, said that on one issue, "we failed to promptly analyse and respond" to information provided. | James Lentz, head of Toyota in the US, said that on one issue, "we failed to promptly analyse and respond" to information provided. |
| Mr Lentz will face questions from a US congressional committee later over the recall and Toyota's handling of it. | Mr Lentz will face questions from a US congressional committee later over the recall and Toyota's handling of it. |
| Toyota president Akio Toyoda will appear in Congress on Wednesday. | Toyota president Akio Toyoda will appear in Congress on Wednesday. |
| 'Poor communications' | 'Poor communications' |
| In recent months, Toyota has been hit by three main safety problems - faulty accelerator pedals, accelerator pedals getting stuck in floor mats, and a problem with braking systems on its hybrid models. | In recent months, Toyota has been hit by three main safety problems - faulty accelerator pedals, accelerator pedals getting stuck in floor mats, and a problem with braking systems on its hybrid models. |
| We acknowledge these mistakes, we apologise for them and we have learned from them James Lentz, Toyota USA president | |
| The majority of the recalls have taken place in the US. Mr Lentz is the first Toyota executive to be grilled in a series of congressional hearings. | The majority of the recalls have taken place in the US. Mr Lentz is the first Toyota executive to be grilled in a series of congressional hearings. |
| He will appear before the House Energy and Commerce Committee in Washington at 1100 local time (1600 GMT). | He will appear before the House Energy and Commerce Committee in Washington at 1100 local time (1600 GMT). |
| In a prepared statement, he said: "It has taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts. | In a prepared statement, he said: "It has taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts. |
| "The problem has also been compounded by poor communications both within our company and with regulators and consumers." | "The problem has also been compounded by poor communications both within our company and with regulators and consumers." |
| He went on: "In the case of sticking accelerator pedals, we failed to promptly analyse and respond to information emerging from Europe and in the United States. | He went on: "In the case of sticking accelerator pedals, we failed to promptly analyse and respond to information emerging from Europe and in the United States. |
| TOYOTA RECALLS: STORY SO FAR Oct 2009 - 3.8 million vehicles are recalled in the US following floor mat problems. More recalls follow in the next few months, over various safety concerns, totalling 8.5 million worldwide by Feb 2010 5 Feb - Toyota president Akio Toyoda apologises for the recalls and pledges to target quality control. However, he is criticised for not bowing deeply enough9 Feb - Mr Toyoda publicly apologises again and this time is seen to get the bow right18 Feb - Mr Toyoda announces that he will face questioning in Congress, having previously said that he would not, after being formally asked to do so23 Feb - the congressional hearings begin, with Toyota's head of US operations, James Lentz, first to be grilled. Q&A: Toyota recalls | |
| "We acknowledge these mistakes, we apologise for them and we have learned from them." | "We acknowledge these mistakes, we apologise for them and we have learned from them." |
| 'Serious flaws' | 'Serious flaws' |
| Commitee chairman Henry Waxman wrote to Mr Lentz on Monday and raised three concerns following a preliminary review of the documents provided by Toyota: | Commitee chairman Henry Waxman wrote to Mr Lentz on Monday and raised three concerns following a preliminary review of the documents provided by Toyota: |
| • Toyota "consistently dismissed" the possibility that electronic failures could be responsible for acceleration problems | • Toyota "consistently dismissed" the possibility that electronic failures could be responsible for acceleration problems |
| • The report that Toyota commissioned to look at potential electronic problems appears to have "serious flaws" and the company was too slow in initiating it | • The report that Toyota commissioned to look at potential electronic problems appears to have "serious flaws" and the company was too slow in initiating it |
| • Toyota's public statements about the adequacy of its recent recalls appear to be "misleading". | • Toyota's public statements about the adequacy of its recent recalls appear to be "misleading". |
| Mr Waxman also wrote to Ray LaHood, Secretary of the Department of Transportation, who will also be questioned. | Mr Waxman also wrote to Ray LaHood, Secretary of the Department of Transportation, who will also be questioned. |
| In the letter, he criticises the National Highway Traffic Safety Administration for "lacking expertise" and said its response to complaints about sudden unintended acceleration appears to have been "seriously deficient". | In the letter, he criticises the National Highway Traffic Safety Administration for "lacking expertise" and said its response to complaints about sudden unintended acceleration appears to have been "seriously deficient". |
| In Mr LaHood's prepared testimony, he said regulators would continue to investigate "all possible causes" of unintended acceleration. | In Mr LaHood's prepared testimony, he said regulators would continue to investigate "all possible causes" of unintended acceleration. |
| Robust sales | Robust sales |
| Toyota said on Tuesday that its global sales were 15% higher in January - when many of the recalls had already been announced - than they were a year ago. | Toyota said on Tuesday that its global sales were 15% higher in January - when many of the recalls had already been announced - than they were a year ago. |
| Toyota president Akio Toyoda will face a grilling on Wednesday | |
| Domestic sales jumped 45%, while overseas sales rose nearly 9%. | Domestic sales jumped 45%, while overseas sales rose nearly 9%. |
| On Monday, Toyota said it had received subpoenas asking it to produce documents relating to the safety problems and the company's disclosure policies. | On Monday, Toyota said it had received subpoenas asking it to produce documents relating to the safety problems and the company's disclosure policies. |
| The subpoenas were served earlier this month by a federal grand jury in New York and by the US financial watchdog, the Securities and Exchange Commission. | The subpoenas were served earlier this month by a federal grand jury in New York and by the US financial watchdog, the Securities and Exchange Commission. |
| Media focus | Media focus |
| Toyota president Akio Toyoda had initially said that he wished to stay in Japan and planned to send Yoshi Inaba, chief of Toyota's North America operations, to face Congress. | Toyota president Akio Toyoda had initially said that he wished to stay in Japan and planned to send Yoshi Inaba, chief of Toyota's North America operations, to face Congress. |
| But last week he signalled a change of heart and said he would testify, after the chairman of the House Oversight and Government Reform Committee formally called for him to do so. | But last week he signalled a change of heart and said he would testify, after the chairman of the House Oversight and Government Reform Committee formally called for him to do so. |
| Mr Toyoda, the grandson of the company's founder, will face tough questioning from the committee. He has been criticised for being too slow to react to the safety issues and for the company offering unclear explanations. | Mr Toyoda, the grandson of the company's founder, will face tough questioning from the committee. He has been criticised for being too slow to react to the safety issues and for the company offering unclear explanations. |
| His performance will be closely watched. It is not yet known whether he will speak in English or Japanese. | His performance will be closely watched. It is not yet known whether he will speak in English or Japanese. |
| He was criticised by the Japanese media earlier this month for not bowing deeply enough at a news conference arranged for him to say sorry for the recalls, leading to questions about the sincerity of his apology. | He was criticised by the Japanese media earlier this month for not bowing deeply enough at a news conference arranged for him to say sorry for the recalls, leading to questions about the sincerity of his apology. |