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Some Japanese initially criticized the U.S. media coverage of Toyota as “Japan bashing.” But reporter Akiko Fujita reports from Tokyo that now those attitudes are beginning to change.
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MARCO WERMAN: I’m Marco Werman, this is The World. Toyota went to Washington to say sorry again. The company’s President, Akio Toyoda testified on Capital Hill this afternoon. He spoke in English and said he was deeply sorry for any accidents caused by defects in Toyota vehicles. And he addressed the company’s handling of safety issues.
AKIO TOYODA: I want to discuss the philosophy of Toyota’s quality control. I, myself, as well as Toyota, am not perfect. At times, we do find defects. But in such situations, we always stop, strive to understand the problem and make changes to improve further. In the name of the company, its long-standing tradition and pride, we never run away from our problems or pretend we don’t notice them.
WERMAN: Toyota pledged his company would change the way it handles consumer complaints. He said that would include seeking greater input from drivers and outside safety experts. He also said Toyota’s priorities became confused in its quest for growth over the past decade. Earlier there was testimony from Transportation Secretary Ray LaHood. He was asked simply if Toyotas are safe. Here’s part of his answer.
RAY LAHOOD: For those cars that are listed on our website, D-O-T dot gov, for recall, to go back, those are not safe. We’ve determined they are not safe. We believe that we need to look at the electronics in these cars because people have told us they believe there’s an issue and we’re going to do that. We’re going to have a complete review on the electronics. But for now, any car that’s on the website needs to go back to the dealer to be fixed.
WERMAN: LaHood pointed out that 23 million cars have been recalled in the U.S. over the last three years and the majority of those are not Toyotas. But the complaints about Toyota vehicles are enough to warrant a serious investigation and LaHood said the Transportation Department will work 24/7 until every single Toyota is safe to drive. The Toyota Congressional Hearings are being followed closely back in Japan. The company is a national icon and its problems abroad are big news there. Some Japanese initially criticized U.S. media coverage of Toyota as Japan bashing. But those attitudes have changed as Akiko Fujita reports from Tokyo.
AKIKO FUJITA: The Japanese aren’t used to seeing their CEO’s grilled publicly. After all, politicians rarely call on them to testify in Parliament. So the Japanese media have approached CEO Akio Toyoda’s Congressional testimony with a measure of curiosity. One news show drew up detailed seating charts of the Congressional Chamber to explain where Mr. Toyoda would sit. Analysts speculated on the line of questioning on another show. One even described the tone of the hearings as traditionally hostile and used the Joseph McCarthy hearings from the 1950′s as one example. In Tokyo’s business district bus driver Hiroji Morita said Toyoda has an obligation to testify in Congress with so many cars recalled. Co-worker Hirotaka Kawasaki said Mr. Toyoda wouldn’t have a lot to offer because he’s just a President with the family name. He doesn’t call the shots. Japanese CEO’s have testified in Congress before. Ten years ago Masatoshi Ono, then CEO of the Bridgestone Firestone Company, was grilled by a Senate committee investigating faulty tires that were recalled. But Toyoda’s testimony has generated so much interest, in part because he’s the leader of the country’s most revered company, at its most critical moment. Toyota’s global success has long been a source of national pride here. But attitude towards the company have changed with its misfortunes. Some of Toyota’s suppliers have complained about the company’s cost-cutting measures. The country’s Transport Minister questioned whether Toyota took the proper steps to share information with the government. The domestic media has openly criticized Toyota’s ways. Once unthinkable considering the advertising money at stake. Finance professor Yukio Noguchi says the Toyota brand may be revered in Japan, but it isn’t the most loved.
YUKIO NOGUCHI: Their engineering level is very high and – - grows very rapidly, so I think Toyota people had proud in their company. I think it is true, but some people regard this attitude and some arrogant.
FUJITA: Toyota’s problems come amid a growing number of complaints, accidents and recalls for several leading Japanese companies. Earlier this week the Japanese government announced it would review its car recall system. Unlike the U.S., Japanese car makers are not required to report recalls to the government unless the cars problems violate the national safety standard. Professor Jeff Kingston teaches Modern Japanese History at Temple University in Tokyo.
JEFF KINGSTON: Corporate Japan really hasn’t had to pay much of a price because consumer liability here is extremely low and so the government hasn’t really raised the penalties on Japanese companies for defective products.
FUJITA: Still, Japanese manufacturers worry Toyota’s problems may have tainted the “made in Japan” brand. They see Toyoda’s testimony as a way to reassure the world that Japan still stands for quality. The country’s leading business daily wrote “Toyoda would carry the message of Japan’s manufacturing sector to the rest of the world.” In Tokyo shopping district, Hiroko Tomizawa remained optimistic Toyota would regain its reputation for quality once Mr. Toyoda explained what caused the cars to falter. She said Toyota is such a wonderful company. People will understand. Bus driver Hiroji Morita wasn’t so upbeat. He said he’s listen to the questions as closely as Mr. Toyoda’s explanations. I heard that there’s a big election coming up in the fall in the U.S., he said. I bet those politicians will try to appeal to voters with a strong performance in this Congressional hearing. For The World, I’m Akiko Fujita in Tokyo.
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