Toyota president issues apology
Published: February 23,2010
WASHINGTON — The president of Toyota’s U.S. operations is apologizing for the company’s slow handling of sudden acceleration problems in its vehicles, saying it took too long to confront the issue.
Toyota’s James Lentz, certain to face hostile questioning today at a congressional hearing, says in prepared testimony that Toyota had poor communications within the company, with government regulators and with its customers.
Also being heard from Tuesday are drivers like Rhonda Smith, a Sevierville, Tenn., woman whose Toyota-made Lexus suddenly zoomed to 100 miles per hour as she tried to get it to stop — shifting to neutral, trying to throw the car into reverse and hitting the emergency brake. Finally, her car slowed down before she crashed.
Smith’s description of her nightmare ride in October 2006 will precede testimony by safety experts — and set the tone for the hearing. Toyota executives and the secretary of transportation also will be at the witness table. Members of the House Energy and Commerce Committee’s investigative panel will be armed with preliminary staff findings that Toyota and the government failed to protect the public.
Toyota, which has recalled 8.5 million vehicles to fix acceleration problems in several models and braking issues in the 2010 hybrid Prius, is bringing apologies to the hearing.
“In recent months, we have not lived up to the high standards our customers and the public have come to expect from Toyota,” said Lentz, president and chief operating officer of Toyota Motor Sales U.S.A. Inc. in prepared testimony. “Put simply, it has taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts.”
Rep. Bart Stupak, D-Mich., chairman of the subcommittee, wrote Toyota that the company misled the public by failing to reveal that misplaced floor mats and sticking gas pedals accounted for only some of the acceleration problems. He said the company resisted the possibility that electronics problems were the cause.
And he wrote the transportation secretary that his agency lacked the expertise and the will to conduct a thorough investigation.
Tuesday’s hearing, along with a second House hearing Wednesday, present a high bar in the company’s attempts to persuade the public it cares about safety.
Toyota revealed Monday that federal prosecutors and the Securities and Exchange Commission are now investigating the company’s safety problems and what it told government investigators.
Lentz was defiant on one point, asserting that Toyota is confident “no problems exist with the electronic throttle control system in our vehicles. We have designed our electronic throttle control system with multiple fail-safe mechanisms to shut off or reduce engine power in the event of a system failure.”
Stupak wrote Lentz on Monday that committee investigators believe he’s relying on a flawed study to reach that conclusion.
Transportation Secretary Ray LaHood, in written, prepared testimony, said his agency will ensure the safety of Toyota vehicles. He added the department’s investigation includes the possibility that interference with electronics had a role in sudden acceleration.
“Although we are not aware of any incident proven to be caused by such interference, NHTSA (the National Highway Traffic Safety Administration) is doing a thorough review of that subject to ensure safety,” the secretary said. “If NHTSA finds a problem, we will make sure it is resolved.”
Committee investigators have made preliminary findings that the government was slow to respond to 2,600 complaints of sudden unintended acceleration from 2000 to 2010.
LaHood countered, “Every step of the way, NHTSA officials have pushed Toyota to take corrective action so that consumers would be safe.”
On Wednesday, the House Oversight and Government Reform Committee will hear from company president Akio Toyoda, who is expected to speak to the committee and the American public through a translator.
In an opinion piece published by The Wall Street Journal, Toyoda acknowledged that the automaker had stumbled badly.
“It is clear to me that in recent years we didn’t listen as carefully as we should — or respond as quickly as we must — to our customers’ concerns,” wrote Toyoda.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Spivey named Under 40 Business Person of the Year by the Mississippi Business Journal
- JACK WEATHERLY: Finding a house, defending a neighborhood, finding a voice
- Top 40 Under 40
- Terminal upgrade on indefinite hold at Jackson International Airport
- Bids on reworking Interstate 55 stretch are rejected
- JACK WEATHERLY: Economic development in these parts is a ‘family’ business
- MDA to close all its regional offices
- CFPB wants repay ability at center of new payday loan rules
- Top 40 Under 40 (digital magazine)