Tuesday, February 23, 2010

Toyota bosses to face US hearings


Toyota bosses to face US hearings


Toyota chiefs are to begin testifying on safety issues later when the first of a series of US hearings begins.

The Japanese carmaker has recalled 8.5 million vehicles worldwide over safety concerns, the majority in the US.

James Lentz, head of Toyota in the US, will appear before the House Energy and Commerce Committee in Washington at 1100 local time (1600 GMT).

Toyota president Akio Toyoda is due to face the House Oversight and Government Reform Committee on Wednesday.

Robust sales

Toyota said on Tuesday that its global sales were 15% higher in January - when many of the recalls had already been announced - than they were a year ago.

Domestic sales jumped 45%, while overseas sales rose nearly 9%.

The company has been hit by three main safety problems - faulty accelerator pedals, accelerator pedals getting stuck in floor mats, and a problem with braking systems on its hybrid models.

On Monday, Toyota said it had received subpoenas asking it to produce documents relating to the safety problems and the company's disclosure policies.

The subpoenas were served earlier this month by a federal grand jury in New York and by the US financial watchdog, the Securities and Exchange Commission.

Media focus

Mr Toyoda had initially said that he wished to stay in Japan and planned to send Yoshi Inaba, chief of Toyota's North America operations, to face Congress.

But last week he signalled a change of heart and said he would testify, after the chairman of the House Oversight committee formally called for him to do so.

Mr Toyoda, the grandson of the company's founder, will face tough questioning from the committee. He has been criticised for being too slow to react to the safety issues and for the company offering unclear explanations.


DATED: 23.02.10

FEED: GG





<< Home

This page is powered by Blogger. Isn't yours?