Bloomberg
Toyota Motor Corp. President Akio Toyoda plans to skip testifying before the U.S. Congress about the company’s recalls, potentially heightening criticism of his handling of the carmaker’s crisis.
Toyoda said he hasn’t decided on his schedule for his U.S. visit. North American President Yoshimi Inaba will attend the hearings in Washington this month. Toyoda told reporters today in Tokyo he may consider attending if he is asked by Congress.
Toyoda, the 53-year-old grandson of the company’s founder, is struggling to repair Toyota’s image after recalling almost 8 million vehicles. The company will put a brake override system on all future models and will fix the braking systems on as many as 80 percent of its best-selling Prius hybrids by month’s end.
“It’s a questionable decision for Toyoda to avoid the hearings,” said Tatsuya Mizuno, director of Mizuno Credit Advisory in Tokyo. “His absence will likely have more of a negative effect on the company’s image than if he were to go.”
Toyoda was invited to a Feb. 24 hearing into the automaker’s handling of recalls by Representative Darrell Issa of California, the senior Republican on the House Oversight and Government Reform panel.
‘Not as Eager’
It’s “telling” that Toyoda will appear only by “formal invitation,” said Kurt Bardella, an Issa spokesman. “Toyoda is not as eager to give Congress and the American people answers as we first thought,” Bardella said.
The U.S. is traditionally the automaker’s most profitable market. Toyota, which has lost over $31 billion in market value since a Jan. 21 accelerator-pedal recall, placed advertisements in Japanese newspapers today apologizing and promising to complete repairs as soon as possible.
“Unless Toyoda appears at the Congress, things won’t settle,” said Koji Endo, managing director at Advanced Research Japan Co., a Tokyo-based equity research firm.
The automaker set up a global quality committee, headed by Toyoda, and will appoint a chief quality officer at each of the company’s regions, Toyoda said. The new committee will have its first meeting on March 30, he said. The company will also appoint a third party to test its electronic throttle system.
“I haven’t been trying to hide from the press,” said Toyoda. “I’m sorry that my late appearance made the situation worse.”
‘Major Weakness’
Toyota’s slow reaction to the crisis shows “a major weakness,” Anil Valsan, global director of automotive research at Frost & Sullivan in London, said in a Bloomberg Television interview.
Toyota was unchanged at 3,380 yen at the close of trading in Tokyo. The stock has declined 19 percent since Jan. 21. While Toyota stock may decline further, most of the company’s woes are “already factored in” to the share price, Valsan said.
The company’s American depositary receipts, each representing two ordinary shares, fell $1.62, or 2.1 percent, to $74.39 at 9:53 a.m. in New York Stock Exchange composite trading.
Toyota said yesterday it plans to provide all the information requested by the U.S. National Highway Traffic Safety Administration, after the agency urged the company to provide documents showing whether recalls were carried out in a “timely manner” as required by law.
Falling Sales
Toyota said U.S. January sales slid 16 percent as a recall put some of its most-popular models off limits, while General Motors Co. and Ford Motor Co. reported increases that beat analysts’ estimates. The company said yesterday it’s cutting production at two U.S. factories to avoid a buildup of unsold cars.
The carmaker faces at least 49 lawsuits filed on behalf of customers in the U.S. and Canada seeking a range of damages in sudden-acceleration cases. It also faces at least 13 lawsuits brought by individuals claiming deaths or injuries.
The world’s largest carmaker has called back almost 8 million vehicles on five continents and 437,000 hybrids including the Prius, the top-selling vehicle in Japan. Toyoda’s first press conference came on Feb. 5 and he met the press again on Feb. 9 to announce fixes to the Prius.
“I think the company’s sales expanded faster than we were able to train personnel,” Toyoda said.
Toyota earlier this month said it plans to sell 7.18 million vehicles globally for the year ending in March, down 5 percent from a year ago.
Tacoma, Camry, Corolla
In addition to recalls related to unintended acceleration and brake problems with the third-generation Prius, Toyota is recalling 8,000 Tacoma pickups and about 7,000 Camrys. U.S. safety officials are reviewing Toyota’s Corolla, the world’s best-selling car.
Toyota is reviewing the power steering of the Corolla and will recall it if defects are found, Executive Vice President Shinichi Sasaki told reporters today.
Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments when the car continues to coast for about a second after the brakes are applied, because of the anti-lock brake system. The carmaker said it received complaints about Prius brakes through dealers starting in the last few months of 2009.
Toyoda said he hasn’t decided on his schedule for his U.S. visit. North American President Yoshimi Inaba will attend the hearings in Washington this month. Toyoda told reporters today in Tokyo he may consider attending if he is asked by Congress.
Toyoda, the 53-year-old grandson of the company’s founder, is struggling to repair Toyota’s image after recalling almost 8 million vehicles. The company will put a brake override system on all future models and will fix the braking systems on as many as 80 percent of its best-selling Prius hybrids by month’s end.
“It’s a questionable decision for Toyoda to avoid the hearings,” said Tatsuya Mizuno, director of Mizuno Credit Advisory in Tokyo. “His absence will likely have more of a negative effect on the company’s image than if he were to go.”
Toyoda was invited to a Feb. 24 hearing into the automaker’s handling of recalls by Representative Darrell Issa of California, the senior Republican on the House Oversight and Government Reform panel.
‘Not as Eager’
It’s “telling” that Toyoda will appear only by “formal invitation,” said Kurt Bardella, an Issa spokesman. “Toyoda is not as eager to give Congress and the American people answers as we first thought,” Bardella said.
The U.S. is traditionally the automaker’s most profitable market. Toyota, which has lost over $31 billion in market value since a Jan. 21 accelerator-pedal recall, placed advertisements in Japanese newspapers today apologizing and promising to complete repairs as soon as possible.
“Unless Toyoda appears at the Congress, things won’t settle,” said Koji Endo, managing director at Advanced Research Japan Co., a Tokyo-based equity research firm.
The automaker set up a global quality committee, headed by Toyoda, and will appoint a chief quality officer at each of the company’s regions, Toyoda said. The new committee will have its first meeting on March 30, he said. The company will also appoint a third party to test its electronic throttle system.
“I haven’t been trying to hide from the press,” said Toyoda. “I’m sorry that my late appearance made the situation worse.”
‘Major Weakness’
Toyota’s slow reaction to the crisis shows “a major weakness,” Anil Valsan, global director of automotive research at Frost & Sullivan in London, said in a Bloomberg Television interview.
Toyota was unchanged at 3,380 yen at the close of trading in Tokyo. The stock has declined 19 percent since Jan. 21. While Toyota stock may decline further, most of the company’s woes are “already factored in” to the share price, Valsan said.
The company’s American depositary receipts, each representing two ordinary shares, fell $1.62, or 2.1 percent, to $74.39 at 9:53 a.m. in New York Stock Exchange composite trading.
Toyota said yesterday it plans to provide all the information requested by the U.S. National Highway Traffic Safety Administration, after the agency urged the company to provide documents showing whether recalls were carried out in a “timely manner” as required by law.
Falling Sales
Toyota said U.S. January sales slid 16 percent as a recall put some of its most-popular models off limits, while General Motors Co. and Ford Motor Co. reported increases that beat analysts’ estimates. The company said yesterday it’s cutting production at two U.S. factories to avoid a buildup of unsold cars.
The carmaker faces at least 49 lawsuits filed on behalf of customers in the U.S. and Canada seeking a range of damages in sudden-acceleration cases. It also faces at least 13 lawsuits brought by individuals claiming deaths or injuries.
The world’s largest carmaker has called back almost 8 million vehicles on five continents and 437,000 hybrids including the Prius, the top-selling vehicle in Japan. Toyoda’s first press conference came on Feb. 5 and he met the press again on Feb. 9 to announce fixes to the Prius.
“I think the company’s sales expanded faster than we were able to train personnel,” Toyoda said.
Toyota earlier this month said it plans to sell 7.18 million vehicles globally for the year ending in March, down 5 percent from a year ago.
Tacoma, Camry, Corolla
In addition to recalls related to unintended acceleration and brake problems with the third-generation Prius, Toyota is recalling 8,000 Tacoma pickups and about 7,000 Camrys. U.S. safety officials are reviewing Toyota’s Corolla, the world’s best-selling car.
Toyota is reviewing the power steering of the Corolla and will recall it if defects are found, Executive Vice President Shinichi Sasaki told reporters today.
Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments when the car continues to coast for about a second after the brakes are applied, because of the anti-lock brake system. The carmaker said it received complaints about Prius brakes through dealers starting in the last few months of 2009.
No comments:
Post a Comment