Toyota Hearings: President Akio Toyoda Blames Recalls on Confused Priorities WASHINGTON — In a dramatic display of political theatre, Toyota's elusive president appeared before a U.S. congressional committee on Wednesday and endured hours of humiliation from angry lawmakers. Akio Toyoda, the grandson of the founder and president of Toyota Motor Corporation, explained that the automaker's massive recalls were triggered because of "too quick" growth, leading to a situation where "priorities became confused."
Another top executive, Yoshimi Inaba, the president and CEO of Toyota Motor Sales U.S.A., said that "SWAT teams" were being put in place to respond to complaints of unintended acceleration within 24 hours of being reported.
The anger of U.S. lawmakers was fully on display, leading Rep. Mark Souder (R-Indiana) to comment that "we're having a hanging before the trial."
"(But) I'm not saying you're not guilty," he added.
The unprecedented dressing-down of the head of a foreign auto manufacturer on Capitol Hill was met with deference, remorse and politeness on the parts of Toyoda and Inaba, who sometimes begged off answering questions, saying they didn't understand the language.
Toyoda read his opening statement in English, saying he took "full responsibility" for the recalls and pledged: "You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers." But he answered lawmakers' questions in Japanese, which was translated by an interpreter seated next to him.
"This is indeed a very embarrassing day for NHTSA," said Rep. John Mica (R-Florida). "It's equally a very embarrassing day for Toyota to have the grandson of the founder to come before the United States Congress. I'm embarrassed for you, sir."
Mica also blasted Inaba for a July 6, 2009 internal Toyota memo with Inaba's name on it that bragged about
saving $100 million by negotiating a limited vehicle recall. "I think you've done a great injustice, sir," Mica said. "This discredits everyone." Inaba insisted that he didn't write the memo and that it was given to him as part of "orientation material" from the automaker's Washington office.
Lawmakers clearly were in a punitive mood. "I hope you recognize what kind of payment for the injuries and the damages suffered by innocent American citizens (you will pay)," said Rep. Paul Kanjorski (D-Pennsylvania). "We had a great deal of faith for something stamped 'Made in Japan.' You injured that thought process in the American public and you will be called upon to pay compensation for that."
Few lawmakers defended Toyota. Rep. Geoff Davis (R-Kentucky), whose state is the site of Toyota's largest U.S. plant, railed against his fellow lawmakers, warning "careless words and unfounded allegation can do irreparable harm to job creation in Kentucky and the United States. The jobs created by Toyota are more important than ever."
Toyota builds the Camry and other models in Georgetown, Kentucky, outside Lexington.
For their part, Inaba and Toyoda defended the recalls and their reaction to them, although Toyoda insisted he only learned about problems with sudden acceleration in December 2009. "You weren't aware of serious acceleration problems until December 2009?" asked an incredulous Rep. Gerald Connolly (D-Virginia). "If it is correct, given your position in the company, that would constitute extraordinary compartmentalization." Some lawmakers traced the first reports of the problem to as early as 2001.
Toyoda insisted that the automaker has not been able to reproduce cases of unintended acceleration. Inaba said he has a "100 percent confidence level" in Toyota's electronic throttle control systems, which some critics have speculated may be at the heart of sudden acceleration.
Rep. Dennis Kucinich (D-Ohio) asked Toyoda if he had ever been advised not to discuss any defects in the electronic throttle control systems in Toyotas because "this would create a devastating financial liability."
"That has never happened," Toyoda responded.
One lawmaker, Delegate Eleanor Holmes Norton (D-District of Columbia), said she owns a
Toyota Camry Hybrid and asked Toyoda: "Is there any chance that the Camry Hybrid will be recalled for any reason?"
Toyoda seemed to hedge his answer. "Right now, it is completely safe," he said. "Every day, as customers continue to use those vehicles, they may come up with new findings. Right now, it is 100 percent safe — at the moment."
She also took aim at Toyoda's official statement to Congress, which laid out priorities such as safety, quality and volume. "The fourth priority is secrecy," said Norton.