Toyota to let U.S. division issue recalls

Toyota execs are giving more leeway to its U.S. and Canadian divisions with regard as to when to issue a recall. Under new plans to improve quality control, Toyota’s North American operations “will have more autonomy and decision-making power with regard to recall and other safety issues,” Yoshimi Inaba, president and chief operating officer of Toyota North America, said in testimony before the Senate Commerce Committee. Toyota has also retained former U.S. Transportation Secretary Rodney Slater to head a “˜blue ribbon” panel to review the company”s own investigation into its global operations.

The announcement comes in the wake of Toyota coming under fire by Congress for their Japanese execs having too much power over U.S. operations.

There has also been talk in Congress about making brake override systems mandatory, and about requiring senior execs legally certify information submitted to safety regulators.

Though disputed by Toyota, many outsiders are pointing their fingers at the electronic throttle control system for causing the incidents of unintended acceleration.

– By: Stephen Calogera

Source: CNNMoney