Toyota chief apologises over accidents

TOYOTA MOTOR Corp chief Akio Toyoda stepped to centre stage in a US investigation of the Japanese carmaker’s safety crisis, apologising…

TOYOTA MOTOR Corp chief Akio Toyoda stepped to centre stage in a US investigation of the Japanese carmaker’s safety crisis, apologising to consumers and pledging reforms to sceptical lawmakers.

“I am deeply sorry for any accidents that Toyota drivers have experienced,” said Toyoda after being sworn in before the House Committee on Oversight and Government Reform.

His appearance marked a dramatic peak in a safety crisis that broke a month ago with a series of recalls over unintended acceleration and braking problems that now includes more than 8.5 million vehicles globally.

Dressed in a gray, pinstriped suit, Mr Toyoda said he, more than anyone, wanted Toyota cars to be safe. “My name is on every car,” Mr Toyoda said in English before using a translator to answer lawmakers’ questions.

READ MORE

But he emphatically rejected a theory that some of the acceleration problems are in the electronics rather than the recalled sticky accelerator mechanisms and floor mats that can trap the accelerator pedal.

“I’m absolutely confident that there is no problem with the electronic throttle system.”

The unintended acceleration problems have been linked to at least five US deaths, with 29 other fatality reports being examined by US authorities. Representative Paul Kanjorski, a Democrat from Pennsylvania, warned Mr Toyoda that his company would have to pay for the deaths and injuries as US lawsuits mount.

“You will be called upon to pay compensation,” Mr Kanjorski said.

The oversight committee’s chairman opened the hearing hours earlier by recounting a horrific crash that sparked the big recalls and blasting Toyota for boasting of saving $100 million by limiting a 2007 recall of floor mats implicated in the fatal accident.

The panel was due to hear from a relative of Mark Saylor, an off-duty California Highway Patrol officer who was killed last August, along with three members of his family, when the Toyota Lexus he was driving sped out of control.

“Toyota either ignored or minimised reports of sudden acceleration,” said oversight panel chairman Edolphus Towns, a Democrat from New York.

US transportation secretary Ray LaHood, who preceded Mr Toyoda before the panel, labelled recalled Toyota vehicles as “not safe”. Toyota, founded by Mr Toyoda’s grandfather, now faces a criminal investigation and a securities probe in the US as well as unresolved questions about hundreds of incidents of unintended acceleration reported by consumers. – (Reuters)

Hyundai Moves Quickly

HYUNDAI WILL recall 47,000 of its new Sonata sedans to fix faulty door latches, seeking to avoid the damaging criticism Japanese rival Toyota faces for its handling of a series of safety problems.

The South Korean carmaker announced the voluntary recall after earlier saying it would suspend US sales of its 2011 Sonata, a move analysts said was in contrast to Toyota’s sluggish response to concerns about sudden unintended acceleration.

“Recalls have become a highly sensitive issue since Toyota’s recall,” said Yim Eun-young, an analyst at Dongbu Securities. “Hyundai seems to have decided to deal with these issues as fast as they can.”

Hyundai, which was the only major carmaker to increase sales in the battered US market last year, has set its target on Toyota customers who have been rattled by the problems over acceleration. – (Reuters)