Toyota president offers apology as recall over Prius mulled

Toyota Motor Corp. President Akio Toyoda apologized Friday for massive global recalls of its top-selling models in his first official news conference to address a spate of safety problems that have pummeled the reputation of the world's biggest automaker.

Sources familiar with the matter told Kyodo News earlier that the automaker is considering carrying out a recall in Japan and the United States of its latest Prius hybrid model over complaints about brake problems, as regulators step up their probes into Toyota.

"I sincerely apologize for causing trouble and concern to many of our customers over recalls on multiple models in multiple regions," Toyoda said in a news conference in Nagoya, which was also broadcast live in Tokyo.

But despite the rushed emergency press conference held late in the evening, Toyoda said the company has not yet reached a conclusion on how to respond to customers who already own the 2010 Prius model, while adding that instructions have been issued for prompt action.

The automaker had already been planning to carry out voluntary repairs free of charge, but sources said it is now in talks with both Japanese and U.S. regulators and may decide early next week whether to go one step further with a mandatory recall due to spreading concern among customers.

Japan's top automaker has been facing closer scrutiny on the Prius issue as it came to light after two previous recalls over faulty accelerator pedals and loose floor mats that can cause the gas pedals to stick.

In rare open criticism of the automaker from within the Japanese government, transport minister Seiji Maehara on Friday said Toyota's response to the Prius issue "lacked customer focus."

The 53-year-old president, who is the grandson of the company founder, has faced heavy criticism for his absence from public view as the recall problems mounted, but the lack of specifics from his hastily arranged appearance could trigger further doubts about his leadership.

"Believe me, Toyota's cars are safe," Toyoda, who took office last June, said in broken English.

"As president, I believe what is happening now is a grave problem and we are in a crisis situation," he said. "My role is to make sure the company cooperates in a united manner to recover customer confidence."

Toyoda and Toyota Executive Vice President Shinichi Sasaki, in charge of quality and customer service operations, said the company will set up a committee to examine the cause of the recent recalls and ask external experts to analyze its quality management system.

Subject to the possible recall is the 2010 Toyota Prius hybrid, which was rolled out in May and remained a top-seller in Japan in January. The automaker has sold around 170,000 units in Japan and about 100,000 units in the United States.

On Friday, Toyota sent an official in charge of technology to the ministry of land, infrastructure, transport and tourism to provide its own analysis of why problems connected to its complex electronic brake system were occurring.

The company plans to fix the problem by improving the software for the antilock brake system, which prevents the wheels from slipping when slamming on the brakes. In Japan, Toyota has already started sending the redesigned computer software to dealers so they can implement the remedy.

The recall, if launched, is likely to spread worldwide because Toyota had sold about 310,000 units of the latest Prius model in around 60 countries, including Japan and the United States, as of the end of 2009. The automaker plans to implement similar measures in affected areas.

The company is also investigating if there are any similar complaints involving other hybrid models, such as the luxury Lexus HS250h sedan and the hybrid-only Sai compact sedan, which employ the same brake system as the Prius.

Toyota officials have said the automaker has already changed the computer software for models produced since late January and these would not be subject to the recall.

In a briefing Thursday on the Prius problem, Hiroyuki Yokoyama, Toyota's managing officer for quality and customer service, said users might experience a time lag before the brakes kick in but the problem can usually be solved by stepping harder on the brake pedal.

The automaker plans to provide the improved computer software to customers through its dealers once it irons out details on carrying out a mandatory recall or voluntary repairs. The process itself is expected to be completed in half an hour or so once the user has taken the car to a dealer.

As of Friday, 93 Prius complaints had been reported to the Japanese transport ministry, including five accidents involving property damage.

On Thursday, the U.S. National Highway Traffic Safety Administration said it had launched a formal investigation into the Prius after receiving 124 complaints from consumers about the gas-electric hybrid, including four reports of crashes.

Toyoda said the company will cooperate fully with U.S. regulators and promised to place top priority on putting customers first.

The Japanese transport ministry is also examining if there were any problems with Toyota's response to the complaints, although the automaker denies any cover up.

The probe on the Prius came after Toyota carried out a safety recall of some 5.55 million vehicles in the United States and Canada in November to fix gas pedals getting stuck under loose floor mats and causing sudden acceleration.

A more recent recall in January over faulty accelerator pedals, involving models such as the popular Camry and Corolla, has quickly spilled over from North America to Europe, China, Latin America and other parts of the world.

A day earlier, the company said it is expecting to return to profit on the net level in the current business year on the back of a gradual recovery in the global auto market.

Its upbeat outlook has mostly been clouded by the anticipated costs of carrying out the recalls and the expected heavy blow to sales from the erosion of its carefully cultivated brand image.

"I hope the return of Toyota to profitability will lead to a boost for Japan," Toyoda said. "Before we worry about sales figures, we want to first put top priority on removing customers' concern and recovering their trust." (PNA/Kyodo)

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