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Toyota president to testify before US Congress on recalls | TradingMarkets.com

Toyota president to testify before US Congress on recalls

Posted on: Fri, 19 Feb 2010 18:18:33 EST


Symbols: TM
WASHINGTON, Feb 19, 2010 (Asia Pulse Data Source via COMTEX) --

Toyota Motor Corp. President Akio Toyoda said Thursday he will testify before a US House of Representatives panel looking into a recent string of recalls worldwide by the Japanese auto giant.

Toyota's top executive is expected to be grilled by US lawmakers on its quality control measures, coming under fresh scrutiny as US regulators launched a preliminary probe into power steering troubles of its popular Corolla models.

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.

"I will be happy to attend. I will speak with full sincerity," Toyoda told reporters Friday in Nagoya near where the company's head office is based.

Toyoda, the grandson of the company's founder, said he will cooperate with US regulators and work toward recovering consumer confidence, which has been badly eroded by recent recalls of over 8 million vehicles worldwide including its top-selling models like the Prius hybrid and the Camry.

"I hope our commitment to the United States and our customers will be understood," he said.

The House committee will hold a hearing titled "Toyota gas pedals: is the public at risk?" at 10 a.m. next Wednesday.

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 -- and the US government's response to the recalls, the House committee said.

Chairman Towns and oversight committee member Darrell Issa, a Republican from California, welcomed Toyoda's decision.

"We believe his testimony will be helpful in understanding the actions Toyota is taking to ensure the safety of American drivers," the two lawmakers said in a joint statement.

In an invitation letter to Toyoda, Towns wrote, "The public is unsure as to what exactly the problem is, whether it is safe to drive their cars, or what they should do about it."

To help clarify this situation, I am inviting you to testify" at the hearing, the chairman said.

Toyoda has come under fire after he initially indicated that he would not attend the US hearing during a news conference in Tokyo on Wednesday, 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.

In Tokyo, Land, Infrastructure, Transport and Tourism Minister Seiji Maehara also welcomed Toyoda's decision although he added it was regrettable that the automaker had initially said Toyoda would not attend.

"I hope Toyota will respond with speed, care and responsibility," he told reporters on Friday.

In a separate development Thursday, the House oversight committee issued a subpoena for "all documents relating to Toyota motor vehicle safety and Toyota's handling of alleged motor vehicle defects and related litigation" in the possession of Dimitrios Biller, who served as the National Managing Counsel for Toyota's US operations between 2003 and 2007.

"The committee is conducting a comprehensive, fact-based investigation with the intent of collecting and analyzing as much relevant information as possible," Towns and Issa said in another joint statement.

Toyota Motor North America Inc. President Yoshimi Inaba and US Transportation Secretary Ray LaHood are also expected to testify before the House oversight committee.

The hearing by the House Oversight and Government Reform Committee will be preceded by a hearing sponsored by the House Energy and Commerce Committee on Tuesday, which will also deal with the Toyota safety problems.

President of Toyota Motor Sales USA Inc. Jim Lentz and David Strickland, administrator of the National Highway Traffic Safety Administration (NHTSA), plan to speak before the energy committee hearing.

Adding to Toyota's troubles, a preliminary investigation by the NHTSA, a US 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. (PNA/Kyodo)

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