Toyota's president to testify before US Congress
- Source: Agencies
- [10:28 February 20 2010]
- Comments
Towns said late yesterday that Toyoda would be joined by Inaba and Jim Lentz, president of Toyota Motor Sales USA.
The Transportation Department's preliminary investigation into steering problems at highway speeds will encompass 487,000 Toyota Corolla and Corolla Matrix compacts from the 2009-2010 model years. The government has received 168 complaints and reports of 11 injuries and eight crashes on the Corolla and Matrix compacts with electric power steering.
Toyota has said it is looking into complaints of power steering difficulties with the vehicle and considering a recall as one option.
Reports of deaths in the US connected to sudden acceleration in Toyota vehicles have surged recently, with the toll of fatalities allegedly attributed to the problem reaching 34 since 2000, according to new consumer data gathered by the government.
Toyoda's appearance comes more than a year after the leaders of General Motors, Chrysler and Ford sought support for the US auto industry and were scolded for traveling to the hearings in private jets. The invitation to Toyoda essentially forced him to testify or face a subpoena.
Toyota faces questions from three committees in Congress. The House Energy and Commerce Committee moved its scheduled hearing up to February 23, one day ahead of the Oversight Committee meeting. The energy panel has invited Jim Lentz, president of Toyota Motor Sales USA, and David Strickland, head of the National Highway Traffic Safety Administration, to testify. A Senate hearing, chaired by West Virginia Sen. Jay Rockefeller, is planned for March 2.
Congressional investigators and the Transportation Department have demanded documents related to the Toyota recalls, seeking information on how long the automaker knew of safety defects before taking action.
Toyota has promised an outside review of company operations, better handling of customer complaints and improved communication with federal officials. The company has provided about 50,000 pages of documents to congressional investigators and is answering questions from staff members, said Josephine Cooper, Toyota's group vice president for public policy and government and industry affairs.
Toyoda's testimony will give the company a chance to clarify, and apologize.
"He has to be extremely well-prepared to take responsibility. He should take the full force of the most hostile criticisms he gets and welcome them," said Jeffrey Sonnenfeld, senior associate dean at the Yale School of Management.
