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Toyota president 'very sorry' for safety recalls

Feb 06 2010 05:12

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Toyota's president finally emerged on Friday to apologise for the recent safety recalls that risk ruining the reputation of one of Japan's corporate icons.

Akio Toyoda, the grandson of the firm's founder, acknowledged growing consumer disquiet over the safety of at least eight million vehicles worldwide affected by potentially lethal acceleration problems.

Toyoda said he "deeply regretted" the concern the acceleration faults had caused to customers and said it was his "personal responsibility" to fix the problem.

"The recalls are affecting several models in several regions and have caused anxiety among customers who are wondering if their cars are OK," he told reporters at a hastily called press conference in Nagoya near the firm's central Japan headquarters. "For that we are very sorry."

He conceded that he had decided to talk to the media in an attempt to reassure Toyota owners, but added that he believed the firm would soon win back their trust. "Believe me," he said, "Toyota cars are safe. We always put the customer first."

The 53-year-old was appointed last year to lead the world's biggest carmaker out of its worst performance since it was founded in 1938. Toyota, which recently overtook General Motors as the world's biggest carmaker, was hit badly by the global downturn in demand for cars, particularly in its key US market.

"We are in the midst of a big crisis and face big challenges ahead," Toyoda said. However, he stopped short of announcing a recall of Toyota's third-generation Prius hybrids amid almost 200 reports of a brake defect.

Media reports in Japan today had suggested that Toyota was poised to recall about 270 000 Prius cars in Japan and the US in response to the problem.

Toyoda, clearly stung by the storm of criticism surrounding his slow response to the crisis, announced the launch of a new taskforce, to be placed under his control, dedicated to improving the quality of the firm's vehicles.

CONTINUES BELOW

The new department will review internal checks, consider customer complaints and call on outside experts to devise solutions to quality control issues.

Toyoda had come under fire for his apparent refusal to publicly explain his company's response to the latest recall, which affects almost 4,5-million cars around the world, including the hugely popular Camry and Corolla models.

The new recall was announced on January 21, but it took almost two weeks for a Toyota executive to appear in public. That unenviable task fell to Jim Lentz, president of Toyota Motor Sales USA.

Toyoda's only public comment before Friday was a brief apology delivered last week to Japanese reporters on the sidelines of the World Economic Forum in Davos.

The latest recall comes on top of a similar move last autumn that affects cars fitted with defective floor mats that could cause sudden acceleration.

Holding 'Toyota's feet to the fire'
The company's furtiveness -- which some critics have interpreted as arrogance -- has been poorly received in the US, where 2,3-million cars are affected by the accelerator glitch.

Earlier this week the US transport secretary, Ray LaHood, said he would take the unusual step of calling Toyoda to discuss the crisis, and promised to "hold Toyota's feet to the fire" in an attempt to address the concerns of millions of worried American motorists.

Today, Toyoda promised to would "fully cooperate" with safety investigations into Toyota cars by US authorities.

Industry watchers warned that a recall of the new Prius, which went on sale in May, could deal a decisive blow to Toyota's reputation for quality and reliability.

But a recall of the world's best-selling hybrid now appears inevitable. Japan's transport minister, Seiji Maehara, today suggested that Toyota was planning an imminent recall or voluntary repair programme.

"Trouble with the Prius means real trouble for the Toyota brand," Ryoichi Shinozaki, a crisis management expert at Kyodo Public Relations, told the Associated Press. "It is a symbol of its commitment to ecology. It lies at the heart of Toyota's new successful business that was defined differently from its past success."

Toyota, which is expecting a return to profit this year despite recall-associated costs of $2-billion, has lost about $34-billion in market value over the past fortnight. - guardian.co.uk © Guardian News and Media 2010

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Comments

It is very rare to say the word "sorry" from our role models!

mj sun on February 6, 2010, 8:22 am

Animal Farm-1209 finds it odd that Toyota has not taken a decision regarding the Prius brake problem.

Animal Farm-1209 finds it odd because Toyota has a slogan Safety-First and have a reputation for having prompt replies to quality problems that can endanger lives.

Animal Farm-1209 hopes for the best for this Giant Automaker!

Animal Farm-1209 on February 6, 2010, 8:53 am

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