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February 13, 2010

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Toyota promises more transparency

TOYOTA yesterday said it's planning a new level of disclosure about car problems beyond what the auto maker is legally required to reveal as it seeks to rebuild consumer trust.

The move comes amid pressure for the car maker's President Akio Toyoda to testify before the United States Congress about safety lapses at hearings scheduled later this month. Presently, the highest-ranking company executive slated to attend the hearing is Toyota's North American head Yoshimi Inaba.

Experts say it's vital that Toyoda appear at the Washington hearings to reverse the perception that the company has been slow to tackle the safety problems that have led it to recall 8.5 million vehicles.

"The final authority needs to be there and explain the situation and say what the company is doing to resolve the problems," said Yoshinobu Yamamoto, professor of international relations at Aoyama University.

If the hearing in Washington goes poorly - if Toyota executives come across as aloof or US politicians come down in a way seen in Japan as excessively harsh - it could even hurt diplomatic ties between the two nations. Relations are already strained over a dispute about plans to relocate a US Marine base on the southern Japanese island of Okinawa.

"This is Toyota's problem, but if it's mishandled, it could spread to other areas," said Yamamoto.

Japanese media reports say Toyoda will attend the hearings in Washington, but the company declined to confirm that.

Toyoda does plan to visit the US in early March to meet government officials and Toyota employees, but that would come after the House Oversight Committee hearing set for February 24 and the House Energy and Commerce Committee hearing planned for February 25.

Yesterday's news that Toyota plans to voluntarily disclose problems that are below recall-level seriousness shows that Toyota is taking some steps to restore its reputation. Details of the plan for more openness would be announced in the future.

"We're trying to be proactive," said spokeswoman Ririko Takeuchi. "Some consumers are worried, so even if the information doesn't rise to the level of a recall, we are taking this step to restore the company's credibility."

Toyota, the world's biggest auto maker, is in the midst of recalling about 8 million cars for a gas pedal that can stick in the depressed position and floor mats that can get stuck under the accelerator.

Toyoda, the president, has apologized several times for the recalls, most recently on Tuesday.




 

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