In Japan, Olympic figure skating trumps Toyota hearing as Lentz fails to impress

By Malcolm Foster, AP
Wednesday, February 24, 2010

In Japan, figure skating trumps Toyota hearing

TOKYO — Olympic figure skating grabbed more Japanese media attention Wednesday than Toyota’s first hearing in Washington where the automaker’s U.S. sales chief failed to provide clear answers to its slew of safety problems.

Analysts said that will put more pressure on Toyota President Akio Toyoda to deliver during his appearance at a second congressional hearing in Washington later Wednesday.

Morning TV shows ran clips of members of the U.S. Congress grilling James Lentz, president of Toyota Motor Sales USA Inc., — which happened overnight while most Japanese were asleep. But much more TV time was devoted to women’s figure skating at the Vancouver Olympics, an event in which Japan has a couple of medal contenders.

Analysts in Japan said the questioning by members of Congress wasn’t overly harsh but Lentz did little to restore consumer confidence.

Lentz “failed to clarify the cause of unintended acceleration, leaving American consumers unconvinced and concerned about safety,” said Ryoichi Saito, auto analyst at Mizuho Investors Securities Co. Ltd. “The American public will not buy uncertainty.”

In his testimony Wednesday, Lentz said the huge recalls of popular Toyota cars and trucks — totaling 8.5 million worldwide — may “not totally” solve frightening problems of sudden, unintended acceleration. Lentz apologized repeatedly for the safety defects.

Members of the House Energy and Commerce Committee also questioned Toyota’s insistence that the problems are mechanical and not linked to sophisticated electronics in the vehicles. Without a more vigorous investigation of the possibility that electronics are involved, Rep. Joe Barton said Toyota’s probe was “a sham.”

Transportation Secretary Ray LaHood told the panel the U.S. government is pursuing the electronics question.

Toyota’s safety woes haven’t generated as much public concern in Japan because the bulk of the cars recalled — mostly over faulty gas pedals and floor mats — are in the U.S. and elsewhere. The only recall in Japan has been for the antilock braking system in the Prius gas-electric hybrid.

And while some Japanese believe Toyota’s quality control has slipped, there is still strong trust in the company many regard as the flagship of Japan Inc.

Attention in Japan to the hearings is likely to increase when Toyoda, the grandson of Toyota’s founder, appears before the House Oversight and Government Reform Committee on Wednesday. Toyoda speaks some English and has prepared an English statement, but is expected to mainly address the committee and the American public through an interpreter.

“People will be interested in seeing how Toyoda-san will perform,” said Koichi Nakano, a professor of political science at Sophia University in Tokyo, adding the “san” honorific to show respect. “People will be worried about that because he’s the Japanese man dragged to a very public arena and having to face a hostile panel of native English language speakers.”

In his prepared statement released in advance, Toyoda will accept “full responsibility” for the recalls. He also will offer his condolences over the deaths of four San Diego, California, family members in a Toyota crash in late August.

“I will do everything in my power to ensure that such a tragedy never happens again,” Toyoda will tell the committee. “My name is on every car. You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers.”

“Quite frankly, I fear the pace at which we have grown may have been too quick,” the statement said. Toyota’s traditional priority of safety first, quality second and sales volume third “became confused,” it read.

His family name differs from the company name because the number of brushstrokes in “Toyota” — eight — was considered luckier than “Toyoda” with 10 strokes.

Some commentators in Japan have suggested that members of Congress may want to show they are tough on Toyota to make an impression on voters ahead of midterm elections later this year.

There is widespread public suspicion here that the intense scrutiny of the company may be partly politically motivated now that the U.S. government owns more than half of General Motors Corp. after its bankruptcy filing. Toyota overtook GM in 2008 to become the world’s biggest automaker. The U.S. government also has a minority share of Chrysler.

“Given the seriousness of some of the incidents, at least the allegations, it’s not unjustified to ask tough questions,” said Nakano.

Still, “most people in Japan think that Toyota cars are very, very safe and reliable,” he said. While some recognize Toyota is dealing with quality problems, they may think “that it’s being overplayed — and if that’s the case it must be because of political gains.”

Trade Minister Masayuki Naoshima told reporters Wednesday that he felt Toyota was “responding very sincerely” to the questioning so far.

But he said it may be difficult to thoroughly convince the American public with hearings alone. “After the hearing, its action will be closely monitored and judged,” he said.

Associated Press writers Shino Yuasa and Kelly Olsen in Tokyo contributed to this story.

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