Most company’s President and CEO meet at the golf course to discuss business or get acquainted with each other – well, things are done a little different in the automotive industry.

Aston Martin’s CEO Dr. Ulrich Bez and Toyota’s President and CEO Akio Toyoda recently met up at the famous Nurburgring track to test drive each other cars. Which cars you ask? Toyota handed Bez the keys to the Lexus LFA while Aston Martin gave Toyoda the keys to the new V12 Zagato. Both cars were in race spec.

So how did everything turn out? Not so great… we don’t want to ruin it for you so just hit the jump for the video to see what we’re talking about.

- By: Omar Rana

GM CEO Dan Akerson Rings Opening Bell at NYSE

Happy New Year’s Eve to all our readers. While you’ve been seeing many top 10 lists all over the Internet as we say farewell to 2010 one of the lists you’re most likely to come across on automotive sites are the Top 10 Cars of 2010…well, not here (we’ll do one too, don’t worry). We decided to do something a little different and create a top 10 list of the most important moments in the automotive industry of 2010.

Let’s get started…

1. General Motors’ IPO:

GM CEO Dan Akerson at New York Stock Exchange

• It was probably the most important automotive industry moment in 2010. On Nov. 3, 2010, General Motors announced that it has started the process of a public offering. On its opening day at the NYSE on Nov. 18, GM’s common stock made its debut at $35 a share and rose as high as $35.99 in early trading. The issue included 478 million shares of common stock, for a total of $15.77 billion, and 87 million shares of mandatory convertible junior preferred stock, for a total of $4.35 billion. As of Dec. 30, the stock stood at 36.82. GM’s shares still have to rise to nearly $49 for the government to break even.

2. First Nissan LEAF and Chevrolet Volt delivery:

2011 Nissan LEAF / 2011 Chevrolet Volt

• Electric-cars made huge headlines in 2010 with General Motors delivering the first Chevrolet Volt and Nissan delivering the first all-electric LEAF.

3. BP’s oil spill was one of the largest man-made disasters in histroy:

BP Oil Spill

• When your company is responsible for one of the largest disasters in history, you wouldn’t expect your public relations department to tweet, “Look, cut us some slack. We’ve kinda just been winging this whole ‘deepwater drilling’ thing.” Well, that’s because BP didn’t. Instead, the tweets came from comedian Josh Simpson. Nonetheless, CEO Tony Hayward hurt the company’s image by downplaying the damage and issuing statements like “it wasn’t our accident” and “I just want my life back” after 11 workers lost their lives in the explosion of oil rig Deepwater Horizon.

4. Toyota’s CEO apologizes to buyers:

• Toyota CEO Akio Toyoda apologized to the company’s shareholders in 2009, followed by an apology to Japan in early 2010. However, in late February 2010, Toyoda apologized to buyers during his trip to Washington and apologized to the House Committee on Oversight and Government Reform. “When the cars are damaged, it is as though I am as well,” he said. ”I sincerely regret that some people actually encountered accidents in their vehicles.”

5. Ford Explorer / Jeep Grand Cherokee show life to the SUV market:

2011 Ford Explorer / 2011 Jeep Grand Cherokee

• The 2011 Ford Explorer and the 2011 Jeep Grand Cherokee showed the automotive industry that American automakers can still build some of the best SUVs on the market. The 2011 Jeep Grand Cherokee became known as Chrysler Group’s pride and joy, while the 2011 Ford Explorer showed that America can sell SUVs in a new fuel-efficient manner.

6. Ford kills Mercury:

2010 Mercury Milan

• On June 2, 2010, FoMoCo announced that it will kill the Mercury brand with production of the brand coming to an end in the fourth quarter of 2010. The company said that it will allocate Mercury’s financial, product development, production and marketing, sales and service resources towards growing and enhancing its luxury Lincoln brand.

7. Bugatti Veyron 16.4 Super Sport breaks top speed record at 268 mph:

2011 Bugatti Veyron 16.4 Super Sport

• For all of us gear heads, this was probably one of the most important moments of 2010. The Bugatti Veyron 16.4 Super Sport received an increased horsepower from 1,001-hp to 1,200-hp with a maximum torque of 1,106 lb-ft. The folks at TUV and Guinness took the average of two runs (one at 265.3 mph and one at 269.6 mph), which came in at 268 mph. Click here for more info.

8. The USA gets its own Top Gear:

From L to R: Adam Ferrara, Tanner Foust, Rutledge Wood

• Another important moment for gear heads and fans of the UK Top Gear. The History Channel filled our desire of having our very own Top Gear in the United States starring Adam Ferrara, Tanner Foust, Rutledge Wood. The show aired on Nov. 21 and, according to us, still has some growing up to do to live up to the UK version. Here is our review of the first episode.

9. Ford sells Volvo to Geely / GM sells Saab to Spyker Cars:

2011 Volvo S60 / 2011 Saab 9-4X

• In 2010, we saw the sale of two Swedish brands from two American automakers. On January 26, 2010 General Motors and Spyker Cars announced that they have reached a binding agreement on the sale of Saab Automobile AB to Spyker Cars. A couple months later, on March 28, 2010, FoMoCo announced that it has entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group Company Limited.

10. Bob Lutz retires:

Bob Lutz

• One of the most important figures in automotive history retired in 2010. General Motors confirmed on March 3, 2010 that Bob Lutz will officially leave his Vice Chairman position and retire as of May 1, 2010. On May 1, Lutz said:

As I mark my last day at General Motors today, I want to say a special thank you and farewell to the loyal readers of FastLane. This blog would not have been the success it has become without you, and I”m sure you”ll continue to read the many interesting posts about GM and its vehicles that will follow on these virtual pages.

I leave here today knowing full well that this company is on the right track, especially in terms of the products, which pave the path to success.

* Note: List is in no particular order.

- By: Omar Rana

Dany Bahar presents Akio Toyoda with special Lotus Elise

Lotus today celebrated its relationship with Toyota at a celebration at the British Embassy in Tokyo where Lotus CEO Dany Bahar gifted Toyota Motor Corp’s President and CEO Akio Toyoda with a specially equipped Lotus Elise powered by the latest Toyota 2ZZ-GE VVTL-iengine. “The occasion marked the end of an era and the start of an even stronger relationship between the two companies,” Lotus said.

“The presentation of Toyota”s last 2ZZ engine in the Elise is a symbolic gesture of our continued respect and deep appreciation for our partner not only acknowledging our past but also looking forward to our future together,” said Bahar said.

“A Toyota engine in a Lotus car creates a completely unique drive feeling ““ a special blend featuring the best of Lotus and Toyota that we hope many car lovers continue to experience and enjoy,” said Toyoda.

Lotus also siad that it has decided to take its relationship with Toyota to the next level that will enable the British sports car maker to create tailor-made powertrain solutions for future Lotus cars. Further details on the expansion of collaboration between the two companies will be announced at the 2010 Paris Motor Show.

Dany Bahar presents Akio Toyoda with special Lotus Elise:

- By: Omar Rana

Ford Motor Company CEO, Alan Mulally

FoMoCo chief Alan Mulally makes more than Toyota’s Akio Toyoda, Nissan’s Carlos Ghosn, and Honda’s Takanobu Ito – combined. The three Japanese heads earned 100 million yen ($1.1 million), 891 million yen, and 115 million yen, respectively. Mulally earned $17.9 million in 2009. Bear in mind that FoMoCo’s salaries are not subject to the same oversight that GM and Chrysler’s are because ford received no bailout.

New Japanese rules require public companies to disclose the pay of those individuals who earn more than 100 million yen per year. Toyota named four such individuals; Toyoda was not on that list.

One expert worries that Japan is not being competitive enough in compensating its execs.

“Because of globalization, competition is intensifying, and there is a greater importance placed on strong and decisive management,” Katsuyuki Kubo, an associate professor of economics at Waseda University in Tokyo who specializes in compensation and corporate governance. “Without the pay incentive, Japan could lose out on competitiveness.”

- By: Stephen Calogera

Source: DriveOn

Akio Toyoda - Toyota CEO

In an address to shareholders this morning, Toyota CEO Akio Toyoda bowed deeply and apologized for the troubles caused by the recent global recalls of the company”s vehicles. He also gave shareholders his assurance that the company was doing everything it can to improve quality control.

“I apologize deeply for the concerns we have caused,” he said. “We believe our most important task is to regain customers’ trust.”

Despite a handful of shareholders who displayed their anger over the company”s recent issues, Toyoda”s statements were met with polite applause for the most part.

VP Satoshi Ozawa said at the meeting that recall-related costs for the fiscal year ended March totaled $4 billion. He also assured, as did Toyoda that the company was taking strong measures to enhance quality control.

Toyoda had also mentioned the fact that no ToMoCo directors received their bonuses; this makes the second year in a row.

- By: Stephen Calogera

Source: MSNBC

Toyota GRMN Sports Hybrid Concept

Forget for a second that Toyota’s President and CEO Akio Toyoda is a media shy executive who doesn’t really come out of his cocoon to answer questions about the company’s massive recall woes. Before taking up the high ranks at the company founded by his grandfather, Toyoda had a lot of training and mentoring under a man named Hiromu Naruse. Naruse, a certified master test driver, sneered at the young executive’s claim to be a true car guy.

“He told me, ‘I don’t want to hear what you have to say about cars until you really know how to drive one,’ ” Toyoda said on the sidelines of this month’s Nurburgring 24-hour endurance race.

Now all that “true car guy” talk is trickling into future Toyota models, whether they be gasoline models or hybrid models.

Toyoda has ordered his engineers to make sure each vehicle produce has the fun-to-drive factor. He said that cars like the Toyota GRMN Sports Hybrid Concept (pictured above) are the kind of cars you can expect to see under his reign at the company.

“I wanted a car that shows what we are aiming for, something affordable, fun to drive and good for the environment,” Toyoda said.

The concept is a two-seater, four-wheel-drive that gets a 3.3L V6 mated to Toyota”s THSII hybrid system. That system allows it to produce “more than 392-hp,” allowing for a 0-60 mph time of less than 4.5 seconds.

We look forward to it Toyoda.

Toyota GRMN Sports Hybrid Concept:

- By: Omar Rana

Source: Automotive News (Subscription Required)

Toyota President and CEO, Akio Toyoda

ToMoCo President Akio Toyoda has said that scrutiny from inside and outside of the company has been a “˜good lesson”, and expects his company to emerge stronger than ever.

“There is a Japanese proverb: After the rain, the ground hardens,” Toyoda said in an interview yesterday. “I am very confident we will look back and say the company has become more focused on our customers and safety because we went through this period.”

Toyoda, who came in as president almost a year ago, attributes the recent problems to the company”s rapid expansion. The NHTSA continues to investigate the company”s handling of past recalls – the company faced a record-high fine for improper notification of known safety issues. As part of its image restoration efforts, the company has formed a global quality committee.

Toyota faces serious competition from Ford and Hyundai in the U.S. market. It has announced separately, a joint-venture with Tesla Motors – bringing the world”s leading hybrid manufacturer together with the only manufacturer of U.S. highway-legal battery-powered cars. The deal with Tesla will help offset some of the threat from GM and Nissan and their advancements in electric-battery powered vehicle technology.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

Toyota's President and CEO - Akio Toyoda

Toyota’s President and CEO, Akio Toyoda, said that he traces the automaker’s quality and financial woes to 2003, when the company began its ambitious global expansion. He said that winning over new customers in the wake of the company’s recall crisis will be a huge challenge.

Speaking to Automotive News over the weekend, the publicity-shy Toyoda said he wants to scale back on the incentives that have led to record U.S. sales this year and revive what he calls a “neglected” Scion brand (which we’re guessing is due to the fact that Scion hasn’t come in under any negative headlines).

“In 2003, we surpassed the 6 million sales mark, and after that the rate of increase kept growing,” Toyoda said. “We look at that as the turning point. When we hit the 6 million mark, we maybe couldn’t apply the Toyota Way as thoroughly as we should have”

Toyoda also said that its best-selling models like the Camry sedan are also facing pressure from Ford, GM and Hyundai, which now rival his company in performance.

- By: Omar Rana

Source: Automotive News (Subscription Required)

Akio Toyoda, Toyota President CEO - Ray LaHood, U.S. Transport Secretary

During his visit to Toyota Motor Corp. world headquarters today, U.S. Transport Secretary Ray LaHood said he was encouraged by the steps the company has put in place to improve vehicle safety; however, he said that he will only be fully convinced when its cars actually become safer.

“I believe that they have put in place some measures that will enable us at the Department of Transportation to have a better handle and a better form of information if they’re carried out,” LaHood said. “And what I told Mr. Toyoda today (is), these measures are important measures but I use the American colloquialism: the proof is in the pudding – time will tell.”

LaHood also warned that additional fines were possible as U.S. auto safety regulators worked through 500,000 pages of documents in efforts that could take at least a couple of months to complete.

Toyota has already agreed to pay a record $16.4 million fine by the National Highway Traffic Safety Administration on April 19 for failing to promptly report flaws in its vehicle accelerator pedals, which eventually led to a recall of more than 8 million vehicles.

We’re guessing Toyoda avoided offering LaHood a hot lap of the Fuji Speedway in a Lexus LF-A.

- By: Omar Rana

Source: Automotive News (Subscription Required)

Toyota's President and CEO - Akio Toyoda

Toyota announced today that its CEO Akio Toyoda will hold a joint briefing with U.S. Transport Secretary Ray LaHood at the company’s headquarters in Toyota City. The briefing will be held on Monday after LaHood’s visit to Toyota.

Toyota said that Toyoda and LaHood will take questions from reporters for 25 minutes.

We’ll have more info on Monday.

- By: Kap Shah

Source: Automotive News (Subscription Required)

It’s not a surprise that all comedians are taking a shot at Toyota to get a couple of laughs as the company goes through massive recalls. Earlier this week on the Late Show with David Letterman, Toyota’s CEO Akio Toyoda (of course it wasn’t really him) showed up to set the record straight with Toyota owners and Americans everywhere.

Hit the jump for the video.

- By: Kap Shah

As a part of his efforts to delegate more authority to each region in order to monitor safety issues, Toyota President and CEO Akio Toyoda will create two new executive positions in the United States. The two positions will consists of a “Chief Safety Executive,” who will work full time on recalls and safety concerns and a higher-ranking chief quality officer who will sit on a Special Committee for Global Quality led by Toyoda.

“Virtually all decisions relating to recalls and safety matters are decided in Japan,” said Jim Wiseman, spokesman for Toyota. “This is an effort to elevate key North American executives in major positions of responsibility and authority in that process.”

During hearings this week, Toyota’s top officials agreed that the concentration on decision-making had resulted in a slow response to potential dangerous defects. Also, Toyota plans on passing on reports about defects discovered in one region to the others.

“We intend to share information in a more timely way in regions around the world,” Toyoda said.

- By: Omar Rana

Source: Detroit News

Akio Toyoda stood in front of Congress today and delivered a seemingly sincere apology for accidents connected to Toyota”s recent recalls. Reading in English, Toyoda delivered a prepared statement in front of the House Oversight Committee, one of three congressional panels investigating the matter.

“We never run away from our problems or pretend we don’t notice them. I fear the pace at which we have grown may have been too quick,” Toyoda said of the company founded by his grandfather. “You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers.”

Toyota has been sharply criticized for putting profits above safety, and committee chairman Ed Towns, D-NY went so far as to accuse officials of bragging about saving $100 million by preventing the NHTSA from finding a defect related to sudden acceleration.

Towns pointed out the severity of the Toyota situation, pointing to examples such as the Ford Pinto”s exploding gas tank situation in the 1970″s. The infamous Pinto situation resulted in 27 deaths while 34 have been attributed to the Toyota defects.

NHTSA Ray LaHood also testified, and admitted that perhaps the agency should have responded with more expedience under the Bush administration. Also scheduled to speak are the relatives of four of those killed as a result of trapped accelerator pedals in Lexus models.

-By: Stephen Calogera

Source: Detroit News
Image Source: KickingTires

Toyota’s President and CEO Akio Toyoda will testify before the House Oversight Committee today on government regulation in the light of the company’s decision to recall over 8.5 million vehicles over unintended acceleration issues. Transportation Secretary Ray LaHood will also be on hand along with Yoshimi Inaba, President and COO of Toyota Motor North America and chairman and CEO of Toyota Motor Sales.

You can read the opening statements from Toyoda and Inaba here.

The hearings start at 11 a.m. so stay tuned for a link directing you to C-SPAN’s live streaming footage.

Update: Click here for C-SPAN’s live stream.

- By: Omar Rana

Akio Toyoda is set to stand before Congress tomorrow, at which he time he intends to shoulder the responsibility for the company having let down its consumers. Toyoda plans to address customers’ growing uncertainty with regard to quality and safety in Toyota products, and assert to the House Oversight Committee that Toyota has never run from problems, nor do they pretend to not notice problems.

The third-generation Toyoda to be running the company, he is also expected to attribute the company’s recent problems to the hyped-up pace of Toyota’s growth. “We were not able to stop, think and make improvements as much as we were able to before, and our basic stance to listen to customers’ voices to make better products has weakened somewhat.” Toyoda said.

Toyota expects the recalls to cost $2 billion in repair costs and lost sales. The NHTSA has received 2,600 complaints, 34 of which involve fatalities, since 2000 for runaway vehicles.

- By: Stephen Calogera

Source: Detroit News

Earlier this morning we brought you Akio Toyoda’s article from the Wall Street Journal. The House Committee has now released a copy of the opening statements from CEO Akio Toyoda and Yoshimi Inaba, President and COO of Toyota Motor North America and chairman and CEO of Toyota Motor Sales.

Both will testify before the House Oversight Committee tomorrow morning.

You can continue watching the live stream of Toyota’s hearing on C-SPAN”s website by clicking here.

Hit the jump to see the opening statements from Toyoda and Inaba.

PREPARED TESTIMONY OF AKIO TOYODA PRESIDENT, TOYOTA MOTOR CORPORATION

COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM – FEBRUARY 24, 2010

Thank you Chairman Towns.

I am Akio Toyoda of Toyota Motor Corporation. I would first like to state that I love cars as much as anyone, and I love Toyota as much as anyone. I take the utmost pleasure in offering vehicles that our customers love, and I know that Toyota’s 200,000 team members, dealers, and suppliers across America feel the same way. However, in the past few months, our customers have started to feel uncertain about the safety of Toyota’s vehicles, and I take full responsibility for that. Today, I would like to explain to the American people, as well as our customers in the U.S. and around the world, how seriously Toyota takes the quality and safety of its vehicles. I would like to express my appreciation to Chairman Towns and Ranking Member Issa, as well as the members of the House Oversight and Government Reform Committee, for giving me this opportunity to express my thoughts today.

I would like to focus my comments on three topics ““ Toyota’s basic philosophy regarding quality
control, the cause of the recalls, and how we will manage quality control going forward.
First, I want to discuss the philosophy of Toyota’s quality control. I myself, as well as Toyota,
am not perfect. At times, we do find defects. But in such situations, we always stop, strive to
understand the problem, and make changes to improve further. In the name of the company, its
long-standing tradition and pride, we never run away from our problems or pretend we don’t
notice them. By making continuous improvements, we aim to continue offering even better
products for society. That is the core value we have kept closest to our hearts since the founding
days of the company.

At Toyota, we believe the key to making quality products is to develop quality people. Each
employee thinks about what he or she should do, continuously making improvements, and by
doing so, makes even better cars. We have been actively engaged in developing people who
share and can execute on this core value. It has been over 50 years since we began selling in this
great country, and over 25 years since we started production here. And in the process, we have
been able to share this core value with the 200,000 people at Toyota operations, dealers, and
suppliers in this country. That is what I am most proud of.

Second, I would like to discuss what caused the recall issues we are facing now. Toyota has, for
the past few years, been expanding its business rapidly. Quite frankly, I fear the pace at which
we have grown may have been too quick. I would like to point out here that Toyota’s priority
has traditionally been the following: First; Safety, Second; Quality, and Third; Volume. These

priorities became confused, and we were not able to stop, think, and make improvements as
much as we were able to before, and our basic stance to listen to customers’ voices to make
better products has weakened somewhat. We pursued growth over the speed at which we were
able to develop our people and our organization, and we should sincerely be mindful of that. I
regret that this has resulted in the safety issues described in the recalls we face today, and I am
deeply sorry for any accidents that Toyota drivers have experienced.

Especially, I would like to extend my condolences to the members of the Saylor family, for the
accident in San Diego. I would like to send my prayers again, and I will do everything in my
power to ensure that such a tragedy never happens again.

Since last June, when I first took office, I have personally placed the highest priority on
improving quality over quantity, and I have shared that direction with our stakeholders. As you
well know, I am the grandson of the founder, and all the Toyota vehicles bear my name. For me,
when the cars are damaged, it is as though I am as well. I, more than anyone, wish for Toyota’s
cars to be safe, and for our customers to feel safe when they use our vehicles. Under my
leadership, I would like to reaffirm our values of placing safety and quality the highest on our list
of priorities, which we have held to firmly from the time we were founded. I will also strive to
devise a system in which we can surely execute what we value.

Third, I would like to discuss how we plan to manage quality control as we go forward. Up to
now, any decisions on conducting recalls have been made by the Customer Quality Engineering
Division at Toyota Motor Corporation in Japan. This division confirms whether there are
technical problems and makes a decision on the necessity of a recall. However, reflecting on the
issues today, what we lacked was the customers’ perspective.

To make improvements on this, we will make the following changes to the recall decision-
making process. When recall decisions are made, a step will be added in the process to ensure
that management will make a responsible decision from the perspective of “customer safety
first.” To do that, we will devise a system in which customers’ voices around the world will
reach our management in a timely manner, and also a system in which each region will be able to
make decisions as necessary. Further, we will form a quality advisory group composed of
respected outside experts from North America and around the world to ensure that we do not
make a misguided decision. Finally, we will invest heavily in quality in the U.S., through the
establishment of an Automotive Center of Quality Excellence, the introduction of a new position
““ Product Safety Executive, and the sharing of more information and responsibility within the
company for product quality decisions, including defects and recalls.

Even more importantly, I will ensure that members of the management team actually drive the
cars, and that they check for themselves where the problem lies as well as its severity. I myself
am a trained test driver. As a professional, I am able to check on problems in a car, and can
understand how severe the safety concern is in a car. I drove the vehicles in the accelerator pedal
recall as well as the Prius, comparing the vehicles before and after the remedy in various
environmental settings. I believe that only by examining the problems on-site, can one make
decisions from the customer perspective. One cannot rely on reports or data in a meeting room.

Through the measures I have just discussed, and with whatever results we obtain from the
investigations we are conducting in cooperation with NHTSA, I intend to further improve on the
quality of Toyota vehicles and fulfill our principle of putting the customer first.
My name is on every car. You have my personal commitment that Toyota will work vigorously
and unceasingly to restore the trust of our customers.

Thank you.

PREPARED TESTIMONY OF YOSHIMI INABA PRESIDENT AND COO, TOYOTA MOTOR NORTH AMERICA (TMA) AND CHAIRMAN AND CEO OF TOYOTA MOTOR SALES

COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM – FEBRUARY 24, 2010

Chairman Towns, Ranking Member Issa, members of the Committee, thank you for inviting me to testify today. My name is Yoshimi Inaba, and I am the President and COO of Toyota Motor North America and Chairman and CEO of Toyota Motor Sales, U.S.A., Inc.
As you heard today from Toyota President Akio Toyoda, and as the Subcommittee on Oversight and Investigations heard yesterday from Jim Lentz, President and Chief Operating Officer of Toyota Motor Sales, U.S.A., Toyota is taking decisive steps to restore the trust of the tens of millions of Americans who purchase and drive our vehicles.

Our 172,000 team members and dealers across North America are making extraordinary efforts to complete our current recalls as quickly and conveniently as possible. We have rigorously tested our solutions and are confident that with these repairs, Toyota vehicles will remain among the safest on the road today. We are also going further, by installing advanced brake override systems in all of our new North American vehicles before the end of 2010 and in an expanded range of existing models as a customer confidence measure, and taking comprehensive steps to ensure strict quality control and increased responsiveness to our customers and regulators in the future.

As you have heard, Mr. Toyoda is leading a top to bottom review of our global quality control processes, and will seek input from independent safety experts to ensure that our processes meet or exceed industry standards. As head of Toyota’s North American operations, I will be closely involved in this review. Working with our new Chief Quality Officer for North America, I also will take responsibility for ensuring that we improve our dialogue with U.S. safety regulators and that we take prompt action on any issues we identify to ensure the safety of American drivers.

In inviting me to testify today, the Committee asked me to address several issues with regard to our recent recalls. Let me summarize my answers here:

Our recent recalls address five separate issues that we have identified with certain Toyota vehicles. In total, some 5.3 million vehicles across 14 models are affected by one or more of these recalls in the United States.

The biggest recalls are for solutions our engineers have developed with regard to two specific mechanical causes of unintended acceleration. One involves all-weather or inappropriate accessory floor mats that when loose or improperly fitted can entrap the accelerator pedal. The other concerns accelerator pedals that can, over time, grow “sticky” with wear in rare instances. The solutions we have developed for both these issues are effective and durable.

With respect to possible accelerator pedal entrapment by the floor mats, Toyota recently designed a vehicle-based change that directly addresses the problem and announced the solution to the public in November 2009 as part of the safety campaign announced on September 29, 2009. Owners of affected vehicles can, in the meantime, drive safely by ensuring that they use only properly secured, appropriate floor mats.

With respect to sticking accelerator pedals, Toyota announced a safety recall in the United States in January to address this issue. The sticking condition does not occur suddenly and if it does, the vehicle can be controlled with firm and steady application of the brakes. We are confident that vehicles whose drivers are not experiencing any issues with their accelerator pedal are safe to drive, and Toyota dealers are rapidly completing the repairs on our customers’ vehicles.
In both of these cases, Toyota thoroughly and carefully evaluated the technical aspects of these issues. However, we now understand that we must think more from a customer first perspective rather than a technical perspective in investigating complaints, and that we must communicate faster, better and more effectively with our customers and our regulators. Our recent, smaller voluntary recalls of certain 2010 Prius and Lexus HS hybrids for a software update to the braking system, certain 2010 Camry cars to inspect a power steering hose, and certain 2010 Tacoma trucks to inspect the front drive shaft all illustrate this new approach.

Chairman Towns, Ranking Member Issa and members of the Committee, I assure you that nothing matters more to Toyota than the safety and reliability of the vehicles our customers drive. We are committed not only to fixing vehicles on the road and ensuring they are safe, but to making our new vehicles better and even more reliable through a redoubled focus on putting our customers first.

Thank you.

- By: Omar Rana

Akio Toyoda, who will appear before the House Committee tomorrow, has written a piece for the Wall Street Journal outlining steps the company is taking to set a new benchmark in automotive safety.

“The first step is taking care of vehicles on the road today, Toyoda said. “But it also means making even safer vehicles in the future””and being more open and transparent about any safety issues that arise.”

“I have personally placed the highest priority on improving quality, not quantity.” he said. “All Toyota vehicles bear my name. When cars are damaged, it is as though I am as well.”

Toyoda said that Toyota will be one of the first mass automakers to produce an advanced brake-override systems, which will be standard on all Toyota models worldwide. Known as the “Smart Pedal” braking system, the technology will automatically cut engine when the brake pedal and the accelerator pedal are pushed simultaneously.

“In short, I pledge that Toyota will set a new standard for transparency and speed of response on safety issues,” Toyoda said. “We also will strive to lead on advanced safety and environmental technologies.”

You can read Toyoda’s fill article over at WSJ here.

- By: Stephen Calogera

Akio Toyoda is known for his intercultural awkwardness, and in preparation for next Wednesday”s congressional appearance, will be undergoing a series of intense preparation sessions, including a mock questioning in English to assess his comprehension. This is Toyota”s chance to augment what many perceive to be a major public relations flop in the wake of Toyota”s disastrous recalls. Toyoda has been criticized for his sluggish response to the crisis facing the company.

On the type of questioning Toyoda will be facing, Deborah Hayden of Kreab Gavin Anderson, a communications consultancy in Japan said the following: “They’ve got to be very careful. They’ve got to be very factual. The statements can’t be bland generalizations, they must be easily supported by facts — they’ll have a lot of lawyers looking at what he says.”

There is a strong need for Toyoda to speak honestly and sincerely, but he must be sure to balance this against risks incurred from taking legal responsibility. While PR consultants have advised that Toyoda communicate in Japanese, the decision has yet to be made. Toyoda is known to struggle when it comes to commenting in English.

Toyoda also came under fire in Japan for his body language; he bowed at the wrong angle, and some consultants are worried that he may have the same problem here with regard to eye contact. There is much for Toyoda to bear in mind and struggling with proper English grammar and enunciation in front of congress may be too much for him to handle at the moment.

-By: Stephen Calogera

Source: Reuters