Global Biz
Toyota's president to testify before Congress
(Agencies)
Updated: 2010-02-19 17:47
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TOKYO: Toyota's president Akio Toyoda, under fire for his handling of sweeping recalls, will testify before a congressional hearing next week, appealing to US lawmakers and aggrieved customers for understanding while the company fixes its safety problems.
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 Toyota Motor Corp. President Akio Toyoda speaks to journalists in Nagoya, central Japan, Friday morning, Feb. 19, 2010. [Agencies] |
Japanese officials praised the decision by Toyoda, grandson of the company's founder, to accept a formal invitation to explain the recalls and outline plans by the world's largest automaker to ensure safety and satisfy worried car buyers.
"I am hoping our commitment to the United States and our customers will be understood," said Toyoda, grandson of the company's founder.
Toyoda said he will cooperate with US regulators looking into recalls of over 8 million vehicles worldwide, including top-selling models like the Corolla, the Camry and the Prius hybrid.
Earlier this week, he said he did not plan to attend the hearings unless invited. That decision drew heated criticism in the US. On Thursday, he agreed to a request to attend from the chairman of the US House of Representatives Committee on Oversight and Government Reform, Rep. Edolphus Towns, a Democrat from New York.
"It was not just up to me to decide," Toyoda told reporters in televised remarks.
The decision won accolades from Japanese officials.
Japan's transport minister, Seiji Maehara, said he welcomed Toyoda's decision. Maehara has urged Toyota to heed the concerns of its customers, and he said it was important for the company to explain the safety lapses.
Industry minister Masayuki Naoshima emphasized the need to prevent the recalls from fueling political friction between Japan and the US
"I would like (Toyoda) to explain the situation to Americans, clarify his handling of the troubles and regain consumer confidence," Naoshima told reporters. "It's best for the president to tackle the issue directly."
The US side is launching a fresh investigation into Corolla compacts over potential steering problems, widening the crisis over recalls for sticking gas pedals, accelerators getting jammed in floor mats and momentarily unresponsive brakes.
At stake is the Toyota brand name and the loyalty of legions of customers whose trust in the company's once impeccable quality has been deeply shaken.
"He's got to demonstrate to regulators, congressmen, customers, dealers, employees that Toyota recognizes there's a problem, they are contrite about it and they're going to fix it," said Jeff Kingston, director of Asian Studies at Temple University in Tokyo.
Toyota has been chastised for a tepid response to the recalls, and Toyoda initially was accused of being largely invisible as the recalls escalated. But he has held three news conferences in recent weeks, apologizing repeatedly for the safety problems and promising changes.
Toyoda already had planned a US visit to meet with American workers and dealers, though the company had planned to send North America chief executive Yoshi Inaba to the congressional hearings.
The desire to avoid the spotlight was understandable, say some analysts. Others contend that only someone from Toyota headquarters could fully answer questions over the design and engineering of the equipment requiring fixes.
"Obviously, the hearing will be nasty. It's a political showplace for those congressmen so I'm sure you are going to see all sorts of unfriendly questions," said Koji Endo, managing director at Advanced Research Japan.
Toyoda's schedule for traveling to the United States was not immediately available.
