Toyota faces Congress scrutiny
By John Crawley and Nobuhiro Kubo |
January 30, 2010, Saturday
|
Print Edition
Print Edition
TOYOTA Motor Corp faced scrutiny from United States Congress over its biggest ever safety recall as investors, suppliers and consumers weighed the impact of an unprecedented halt in US production by the No. 1 auto maker.
Toyota's recalls due to problems with unintended and dangerous acceleration comes at a bad time for the industry as it struggles to lure buyers back to showrooms after a slump in sales that helped drag US rivals General Motors and Chrysler into bankruptcy.
House Energy and Commerce Committee Chairman Henry Waxman said he would hold a hearing next month to consider "how quickly and effectively" the car maker responded to complaints about sticking pedals and slipping floormats.
"Like many consumers, I am concerned by the seriousness and scope of Toyota's recent recall announcements," Waxman said in a statement on Thursday.
The unusual action by the US government comes just hours after the Toyota recall for accelerator problems was widened to include China and Europe.
Toyota this week suspended North American sales and production of eight models, including its best-selling Camry, after pressure from regulators.
Japan's largest company, studied for its devotion to quality, could recall about 8 million vehicles in North America, Europe and China -- more than the number of cars and trucks it sold worldwide in 2009.
In Tokyo, some worried about the knock-on effects to Japan's image and economy.
"If Toyota has hard times, there's a high probability that Japan also will," said Takeo Namekata, a 62-year-old office worker. "Particularly, trade will suffer."
Suppliers were expected to see some fallout.
"Toyota has a very close tie with its hand-picked suppliers. It's like a parent in a big family, and the children actually depends on Toyota for a living," said Kevin Chen, president of Gasgoo.com, a major Chinese B2B auto parts trading platform. "If Toyota gets the flu, its suppliers will also be sneezing."
International supply companies were most at risk, said Tatsuya Mizuno, president of Mizuno Credit Advisory.
Toyota's recalls due to problems with unintended and dangerous acceleration comes at a bad time for the industry as it struggles to lure buyers back to showrooms after a slump in sales that helped drag US rivals General Motors and Chrysler into bankruptcy.
House Energy and Commerce Committee Chairman Henry Waxman said he would hold a hearing next month to consider "how quickly and effectively" the car maker responded to complaints about sticking pedals and slipping floormats.
"Like many consumers, I am concerned by the seriousness and scope of Toyota's recent recall announcements," Waxman said in a statement on Thursday.
The unusual action by the US government comes just hours after the Toyota recall for accelerator problems was widened to include China and Europe.
Toyota this week suspended North American sales and production of eight models, including its best-selling Camry, after pressure from regulators.
Japan's largest company, studied for its devotion to quality, could recall about 8 million vehicles in North America, Europe and China -- more than the number of cars and trucks it sold worldwide in 2009.
In Tokyo, some worried about the knock-on effects to Japan's image and economy.
"If Toyota has hard times, there's a high probability that Japan also will," said Takeo Namekata, a 62-year-old office worker. "Particularly, trade will suffer."
Suppliers were expected to see some fallout.
"Toyota has a very close tie with its hand-picked suppliers. It's like a parent in a big family, and the children actually depends on Toyota for a living," said Kevin Chen, president of Gasgoo.com, a major Chinese B2B auto parts trading platform. "If Toyota gets the flu, its suppliers will also be sneezing."
International supply companies were most at risk, said Tatsuya Mizuno, president of Mizuno Credit Advisory.
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