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Toyota boss faces tough questions Toyota boss apologises for faults
(3 days later)
The president of Toyota will face tough questioning from US politicians later as their probe into safety problems at the firm continues. Toyota's president has apologised to the US Congress and American Toyota owners for safety problems that led to deaths and worldwide recalls.
Akio Toyoda is to be quizzed on events that led to 8.5 million vehicles being recalled worldwide and how his firm responded to the public's concerns. Akio Toyoda said he was "deeply sorry" for any incidents which had occurred as a result of failures with accelerators and brakes on several models.
Mr Toyoda has already released opening remarks which admitted that the firm's expansion "may have been too quick". Mr Toyoda pledged his "full co-operation" with the US investigation.
The Congress committee has already been scathing of Toyota's US boss. But, under questioning, he insisted no faults had been discovered with the electronics of any of its vehicles.
Sales impact He pledged that an independent, outside advisory board would look into the issue.
'Not safe'
Toyota has recalled about 8.5 million vehicles worldwide.
ANALYSIS By Jorn Madslien, BBC business reporter
Toyota's assurances that faulty electronics were not the cause of faulty accelerator or brake pedals in Toyota or Lexus models do not appear to have convinced the politicians. And its reluctance to remove encryption of so-called "black boxes" in its cars also upset the committee members. Analysis from the hearing
Earlier the chairman of the House Oversight and Government Reform Committee, Edolphus Towns, said Toyota and regulators had "failed their customers" on safety.
And Transport Secretary Ray LaHood told the hearing that all vehicles which had been recalled were "not safe".
But he added that Mr Toyoda's scheduled appearance showed that world's biggest car maker was no longer "safety deaf" to complaints and concerns.
Scrutiny
The reputation of Toyota has been severely damaged by a string of major problems across a range of vehicles.The reputation of Toyota has been severely damaged by a string of major problems across a range of vehicles.
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, among the first to be grilled. Q&A: Toyota recalls Boss says Toyota 'grew too fast'
The main issues have been faulty accelerator pedals, accelerator pedals getting stuck in floor mats, and a problem with braking systems on its hybrid models.The main issues have been faulty accelerator pedals, accelerator pedals getting stuck in floor mats, and a problem with braking systems on its hybrid models.
Manny Lopez, auto editor at the Detroit News, said the recalls were having a big impact on Toyota's business. Noriko Hama, Doshisha Business School, calls Akio Toyoda a ''pampered prince''
"They're struggling mightily," he said. "There was a study out here in the US a couple of days ago that said that Toyota has lost about 5% of market share. Fe Lastrella, who lost four family members in a crash caused by a faulty accelerator on a Toyota, gave evidence after Mr Toyoda.
"That's just since the first recall at the beginning of January, and they stand to lose more than that before the month is over and over the next couple of months." Mrs Lastrella's son Chris, daughter Cleofe, Cleofe's husband Mark Saylor and the couple's daughter Mahala were killed on 28 August 2009 in California - an incident that led to renewed US government scrutiny of problems with acceleration in some models.
'Groping for story' "To the honourable members of the committee and the honourable members of the congress, the answer lies in your hands," she said.
The BBC's Adam Brookes in Washington said that the House Energy and Commerce Committee had "not yet accepted that Toyota understands why these cars surged out of control". 'Personal responsibility'
"The committee is groping for the rest of the story," he added. Under questioning, Mr Toyoda said the company had shared with US authorities all the information it had about unintended acceleration problems.
Mr Toyoda will be the most high profile figure to appear before the politicians. 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 enough 9 Feb - Mr Toyoda publicly apologises again and this time is seen to get the bow right 18 Feb - Mr Toyoda announces that he will face questioning in Congress, having previously said that he would not, after being formally asked to do so 23 Feb - Congressional hearings begin, with Toyota's head of US operations, James Lentz, among the first to be grilled.24 Feb - Toyota's president Akio Toyoda faces politicians in day two of the hearing. class="" href="/2/hi/business/8496902.stm">Q&A: Toyota recalls class="" href="/2/hi/business/8529950.stm">Boss says Toyota 'grew too fast' class="" href="/2/hi/asia-pacific/8534294.stm">Why is it not called Toyoda?
He 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. In remarks which he read to the House, Mr Toyoda admitted that the firm's expansion "may have been too quick".
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. He was joined by Yoshimi Inaba, president and chief executive of Toyota Motor North America, who answered questions in English.
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. Mr Toyoda read his opening statement in English, but answered questions in Japanese, through a translator.
'Deeply sorry' Mr Toyoda is the highest-profile figure to appear before the politicians.
The grandson of the company's founder said in his pre-prepared remarks that he took a personal responsibility for improving the quality of Toyota cars. He had initially said that he would stay in Japan and not face Congress but changed his mind last week after a formal request from the committee chairman.
We now understand that we must think differently when investigating complaints and communicate faster, better and more effectively James Lentz, Toyota Motor USA The grandson of the company's founder, Mr Toyoda said in prepared remarks that he took a personal responsibility for improving the quality of Toyota cars.
"All the Toyota vehicles bear my name. For me, when the cars are damaged, it is as though I am as well. I, more than anyone, wish for Toyota's cars to be safe, and for our customers to feel safe when they use our vehicles.""All the Toyota vehicles bear my name. For me, when the cars are damaged, it is as though I am as well. I, more than anyone, wish for Toyota's cars to be safe, and for our customers to feel safe when they use our vehicles."
And he added: "We pursued growth over the speed at which we were able to develop our people and our organisation and we should be sincerely mindful of that."And he added: "We pursued growth over the speed at which we were able to develop our people and our organisation and we should be sincerely mindful of that."
Mr Toyoda also said he was "deeply sorry" for accidents that had occurred and made a personal apology to the family of Mark Saylor, a California highway patrol officer killed along with his wife, daughter and brother-in-law in a crash that led to renewed US government scrutiny of problems with acceleration in some models. Chairman Towns said he was "impressed "that Mr Toyoda had agreed to testify voluntarily.
Congress has already heard from Toyota Motor USA chief James Lentz, who they quizzed for more than two hours on Tuesday. "It shows your commitment to safety as well," Mr Towns added.
Under questioning, he agreed that about 70% of complaints about unintended acceleration remained unexplained.
"That is probably fair to say," he said. "There are many factors that lead to it." Are you in Japan? What is your view of the problems with Toyota cars? How do you feel about Akio Toyoda apologising to the US Congress? Send us your views using the form below.
"We now understand that we must think differently when investigating complaints and communicate faster, better and more effectively with our customers and our regulators," he added. name="say">
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The committee also heard from Rhonda Smith - who fought back tears as she told of a "near death" experience in October 2006 after the Toyota Lexus she was driving would not slow down.
Toyota driver 'lost all control'
Mrs Smith said the company "chose to blatantly ignore" her concerns and told politicians that both Toyota and the National Highway Traffic Safety Administration had dismissed her belief that the vehicle's electronics were to blame.
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.
Toyota can expect support from one quarter. More than a hundred dealers from around the US have travelled to Washington.