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Facing Massive Recalls, Toyota Executives Promise to Do Better

By Joe Benton
ConsumerAffairs.com

July 20, 2006

Toyota • Airbags • Engine Problems • Cruise Control • Cooling System • Safety • Toyota Motor Credit • Avalon • Echo • Prius • Tacoma • Tundra --- Reviews • 2007 Corolla • 2006 Prius • 2007 Camry --- News • Toyota Raises Prices, Prius Jumps $400 • Quality Auditor Charges Toyota Cover-Up • Toyota Agrees to Oil-Sludge Settlement • Toyota Camry Named "Car of the Year" • Software Glitch Slows Some 2007 Camrys • Is Toyota's Quality Slipping? • Toyota Delays U.S. Sales of New Corolla to Improve Quality • Facing Massive Recalls, Toyota Executives Promise to Do Better • Toyota Recalls Near 800,000 for July • Japanese Probe Recall Delay at Toyota • Toyota Builds More Efficient Gasoline Engines • Toyota Cuts Entry-Level Camry Price, Boosts Luxury Model • Toyota Dons NASCAR Racing Gear • Toyota Sludge

Stung by an unprecedented number of recalls, Toyota Motor Corp. executives faced a barrage of hostile questions at a Tokyo news conference, as they promised that the world's number two automaker will intensify its efforts to maintain quality as the company works to increase production and gain market share.

Toyota is the largest automaker in Japan and has built its reputation on offering safe and reliable cars at reasonable prices.

In the U.S., Toyota's largest market, the automaker has issued two recalls in July that include 400,000 SUVs as well as 8,500 Prius hybrids. The company has recalled more than 1 million vehicles in Japan alone so far this year.

Toyota faces a criminal investigation by prosecutors in southern Japan questioning whether quality-control managers delayed a recall that could have prevented an accident in 2004 that injured five people, including three children.

Toyota executives repeated their denial of any quality-control mistakes in 2004 that could lead to criminal prosecution but the also apologized to Toyota customers for causing them to question their trust in the automaker.

Toyota President Katsuaki Watanabe told the news conference that quality is Toyota's lifeline as he fended off repeated questions concerning recent problems at the automaker.

"There will be no growth without an improvement in quality. This is the biggest task that this management team must undertake," Watanabe said.

Toyota has established a new division to gather information on vehicle problems reported by owners as well as keep track of vehicle repairs after the period covered by warranty.

Despite the recalls and bad publicity, the Japanese automaker is on track to sell almost 9 million vehicles in 2006 which will put the company in a position to overtake General Motors as the world's largest automaker.

"We view GM as a great entity, from which we have a lot to learn," Watanabe said, adding Toyota wanted to maintain its 22-year-old, California-based car assembly plant which it operates with GM. "We want to keep this relationship going."

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