US raises prospect of more fines for Toyota in safety drive
By Jay Alabaster |
May 11, 2010, Tuesday
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Print Edition
Print Edition
UNITED States Transportation Secretary Ray LaHood said yesterday the US wants to see results from Toyota's efforts to improve safety, and more fines would be imposed if needed.
"If a fine is required, I think everyone recognizes now that safety is our number one priority, and we will do all that we can to uphold the laws in our country," he said.
LaHood, speaking at Toyota's headquarters in its namesake city in central Japan, said he was pleased with measures Toyota Motor Corp has taken to improve its communication with US regulators, but was waiting to see if they are effective.
He spoke after meeting Toyota President Akio Toyoda to discuss how the car maker has revamped its business during its ongoing recall crisis.
LaHood repeatedly emphasized that he wanted to see more progress from Toyota, saying the measures so far are important, but said that he told Toyoda: "The proof is in the pudding."
The world's largest car manufacturer has recalled more than 8 million vehicles worldwide - most in the US - for safety lapses affecting some of its top-selling models. The company still faces hundreds of state and federal lawsuits and recently paid a record US$16.4 million US government fine because of a four-month delay in telling authorities about defective gas pedals. Toyota's sweeping recalls have triggered the first major review of US auto safety laws in Congress since the tire recalls by Bridgestone/Firestone Inc in 2000.
Toyoda said he believed his company was making "strong progress" on its commitments to strengthen safety measures and increase communication between the company's broad operations. "We are giving our local regions a greater role in making safety decisions and we are sharing information across regions on a more timely basis," he said.
One complaint against Toyota has been that it was slow to address safety issues in the US because of communication lags with its Japanese headquarters.
Toyoda also said he would be traveling to the US soon as part of the company's safety improvement efforts.
LaHood's trip to Toyota City took place a day before the company is due to release earnings.
Despite the safety problems and a stagnant global economy, Toyota forecasts a return to the black for the last fiscal year that ended in March, aiming for an 80 billion yen (US$873 million) profit.
"If a fine is required, I think everyone recognizes now that safety is our number one priority, and we will do all that we can to uphold the laws in our country," he said.
LaHood, speaking at Toyota's headquarters in its namesake city in central Japan, said he was pleased with measures Toyota Motor Corp has taken to improve its communication with US regulators, but was waiting to see if they are effective.
He spoke after meeting Toyota President Akio Toyoda to discuss how the car maker has revamped its business during its ongoing recall crisis.
LaHood repeatedly emphasized that he wanted to see more progress from Toyota, saying the measures so far are important, but said that he told Toyoda: "The proof is in the pudding."
The world's largest car manufacturer has recalled more than 8 million vehicles worldwide - most in the US - for safety lapses affecting some of its top-selling models. The company still faces hundreds of state and federal lawsuits and recently paid a record US$16.4 million US government fine because of a four-month delay in telling authorities about defective gas pedals. Toyota's sweeping recalls have triggered the first major review of US auto safety laws in Congress since the tire recalls by Bridgestone/Firestone Inc in 2000.
Toyoda said he believed his company was making "strong progress" on its commitments to strengthen safety measures and increase communication between the company's broad operations. "We are giving our local regions a greater role in making safety decisions and we are sharing information across regions on a more timely basis," he said.
One complaint against Toyota has been that it was slow to address safety issues in the US because of communication lags with its Japanese headquarters.
Toyoda also said he would be traveling to the US soon as part of the company's safety improvement efforts.
LaHood's trip to Toyota City took place a day before the company is due to release earnings.
Despite the safety problems and a stagnant global economy, Toyota forecasts a return to the black for the last fiscal year that ended in March, aiming for an 80 billion yen (US$873 million) profit.
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