"Toyota Gas Pedals: Is the Public At Risk?" Panel 2 Part 1

our second panel I would like to introduce our second panel testifying on this panel and mr. Keogh Toyota president CEO of Toyota Motor Corporation and mr. Inaba president and CEO of Toyota Motors North America gentlemen it is the committee’s long-standing policy that all witnesses are sworn in please stand and raise your right hand as I administer the oath do you solemnly swear to tell the truth the whole truth and nothing but the truth if so answer in the affirmative let the record reflect that the witnesses answered in the affirmative let me begin by first welcoming you and I really appreciate the fact that you have come to testify and that mr. Toyota that you actually volunteered to come and to testify that to want you to know we’re very impressed with that that shows your commitment and of course to safety as well and we want to appreciate the fact that you volunteer to come mr Nava we welcome you here as well and we’ve had conversations with you you know over the past few weeks and months so at this time we would ask you to testify actually we will give you additional time we generally give five minutes but you know being he is all the way from Japan we give him more time so mr. Toyoda yes you may begin is microphone thank you chairman towns I’m Akio Toyoda of total Motor Corporation at first like to state that I love cars as much as anyone and I love Toyota as much as anyone I’m here with my Toyota family of dealers from team members and friends I take that most pleasure in offering vehicle that our customers love and I know that Toyota’s 200,000 team members dealers and suppliers across America feel the same way however in the past few months our customers have started to feel uncertain about the safety of turtle vehicle and I take full responsibility for that today I will actually explain to the American people as well as our customers in the US and around the world how seriously Toyota takes the quality reax mr. mr. Toyota just pull the mic just a little closer to you thank you today I would like to explain to the American people as well as our customers in the US and around the world how seriously Toyota takes the quality and safety of each vehicle I would like to express my appreciation to chairman towns and ranking member Issa as well as the members of the House Oversight and Government Reform Committee for giving me this opportunity to express my thoughts today I would like to focus my comments on three topics Toyota’s basic philosophy regarding quality control the cause of the recalls and how we will manage quality control going for first I want to discuss the philosophy of total quality control I myself as well as Toyota I 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 father 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 by making continuous improvements we aim to continue offering even better products for society that is the core barrel we have kept closes to our hearts since the founding days of the company at Toyota we believe the key to making quality product is to develop quality people each employee thinks about what he or she should do continuously making improvements and by doing so makes even better cars we have been actively engaged in developing people who share and can execute on this core value it has been over 50 years since we began selling in this great country and over 25 years since we started production here and in the process we have been able to share this core value with the 200 thousand people at Toyota operation dealers and suppliers in this country that is what I am most proud of second I would like to discuss what caused the recall issues we are facing now Toyota has for the past few years being expanding its business rapidly quite frankly I fear the pace of which we have grown may have been too quick I would like to point out here that Toyota’s priority has traditionally been the following first safety second quality third volume these priorities became confused and we are not able to stop think and make improvements as much as we are able to before and a basic stance to listen to customers voice to make better products has weakened somewhat we pursued growth over the speed at which we are able to develop our people and our organization and we should sincerely be mindful of that I will get that this has resulted in the safety issue described in the recalls we faced today and I am deeply sorry for any accident that Toyota drivers have experienced especially I would like to extend my condolences to the members of Saylor family for the accident in San Diego I would like to send my prayers again and I will do everything in my power to ensure that such a tragedy never happen again since last June when I look to office I have personally placed the highest priority on improving quality over quantity and I have shared that direction with our stakeholders as you well know I am the grandson of the founder and all the Toyota vehicles bear my name for me when the cars are damaged it is although I am as well I more than anyone wish for Toyotas cars to be safe and for our customers to feel safe when they use our vehicles under my leadership I would like to reaffirm a value of safety and quality the highest on our list of priorities which we have held to firmly from the time we are founded I will also strive to devise a system in which we can surely execute what we value sir I would like to discuss how we plan to manage quality control as we go for up to now any decision on conducting Rico’s have been made by the customer quality engineer division at automotive cooperation in Japan this division confirms whether there are technical problems and makes decisions on the necessity of Rico however reflecting on the issues today what we lacked was the customer perspective to make improvements on this we’ll make the following changes to the Rico decision-making process when Rico

decisions are made a step will be added in the process to ensure that management will make responsible decision from the perspective of customer safety first to do that we’ll devise a system in which customers boys around the world will reach our management in a timely manner and also a system in which each region will be able to make a decision as necessary father will form a quality advisory group compose a respected outside expert from North America and around the world to ensure that we do not make misguided decision finally we’ll invest heavily in quality in the u.s. through the establishment of an automobile center of quality excellence the introduction of new position product safety executive and the sharing or more information and responsibilities Windom within the company for product quality decisions including the effects and recalls even more importantly I will ensure the members of the management team actually drives a car and that they check for themselves where the problem lies as well as its severity I myself am a training test driver as a professional I am able to check a problem in a car and can understand how severe the safety concern is in a car I drove the vehicle in the accelerator pedal Rico as well as a Prius comparing the vehicles before and after the remedy is various environmental settings I believe that only by examining the problems on-site can make decisions from the customer perspectives one cannot rely on reports or data in the meeting room through the measures I have just discussed and with whatever results we obtain from the investigation we are conducting in cooperation with Nita I intend to further improve on the quality of Toyota vehicles and fulfill a principle of putting the customer first 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 thank you thank you very much mr. Toyoda mr Inaba general towns ranking member is eisah members of the committee thank you for inviting me to testify today my name is Yoshi Manabe and I’m the president and CEO of Toyota Motor North America and chairman and CEO of Toyota Motor Sales USA as you heard today from Toyota president Akio Toyoda and as the Subcommittee on Oversight and investigation heard yesterday from Jim Lance president of chief operating officer of the autumn of the cells USA Toyota is taking decisive steps to restore the trust of the tens of millions of Americans who purchase and drive our vehicles our hundred seventy two team members and leaders across North America are making extraordinary efforts to complete our current recalls as quickly and conveniently as possible we have rigorously tested our solutions and are confident that with these repairs Toyota vehicle will main among the surface on the road today we also going further by installing advanced brake override systems in all over new North American vehicles before the end of 2010 and in an expanded range of existing models as a customer confidence measure and taking comprehensive steps to ensure strict quality control and increase responsiveness to our customers and regulators in the future as you have heard Mr Toyota is leading a top-to-bottom review of our global quality control press processes and will seek input from independent safety

experts to ensure that our processes meet or exceed industry standards as head of third as North American operation I’ll be closely involved in this review working with a new chief quality officer for North America I also will take responsibility for ensuring that we improve our dialogue with US safety regulators and that we take prompt action on any issue we are to ensure the safety of American drivers in inviting me to testify today the committee asked me to address several issues with regard to our recent recalls let me summarize my answers here our recent Rico’s address five separate issues that we have identified with certain Toyota vehicles in total some 5.3 million vehicles across 14 models are affected by the by one or more of these recalls in United States the biggest rico’s are for solutions our engineer have developed with regard to two specific mechanical causes of unintended acceleration one involves all whether or innapropriate accessory floor mats that when loose or improperly fitted can entrap the accelerator pedal the other concerns axle pedals that can over time grow sticky with wear in rare instances the solutions we have developed for both these issues are effective and durable with respect to possible accelerator pedal entrapment by the floor mat Toyota recently designed a vehicle based change that directly address addresses the problem and announced the solution to the public in November 2009 as part of the safety campaign announced on September 29th 2009 owners of affected vehicles can in the meantime drive safely by ensuring that they use only properly secured appropriate floor mats with respect to Street as seeking accelerator pedal tirta announced a safety recall in the United States in January to address this issue the sticking condition does not occur suddenly and if it does the vehicle can be controlled with firm and steady application of the brakes we are confident that vehicles whose drivers are not experience any issues with their accelerator pedal are safe to drive and Toyota dealers are rapidly completing the repairs on our customers vehicles in both these cases tirta thoroughly and carefully evaluated the technical aspect of these issues however we now understand that we must think more for a customer first perspective rather than a technical perspective in investigating complaints and that we must communicate faster better and more effectively with our customers and our regulators a recent smaller voluntary recalls of certain 2010 prius and lexus HS hybrids for software update to a braking system certain 2000 camry cars to inspect the power steering hose and certain 2010 tacoma trucks to inspect the front drive shaft all illustrate this new approach chairman towns ranking member Issa and members of the committee i assure you that nothing matters more to toyota than the safety and reliability of the vehicles our customers drive we are committed not only to fixing vehicles on the road and ensuring they are safe but to making our new vehicles better and even more reliable through our redoubled focus on putting our customers first thank you thank you very much and let me thank both of you for your testimony let me begin by saying have you told Nitsa everything you know about sudden acceleration problems have you tone it it is to me in both I know what does

Medicaid ever I know Yoho embassy assess it that I did to you who need if I was to according to my understanding all my clothes according to my understanding yeah we fully share the information we have with the authorities our Washington office has been always in touch with Nitza and we are fully cooperating with Nitza in any information they require as Toyota disclosed all information about other potential safety defects with your vehicles to the regulators have you done that so no good tiding in dota 2 co2 economist de cicada most masterly yo holla harshly today tariqa was too much i do not know the specifics however as i mentioned earlier i do understand that all the information we have are shared with authorities let me ask this question today Attorney General Andrew Cuomo of New York announced an agreement with Toyota and this agreement provides that if a customer might be afraid to drive his or her car subject to a recall the dealer will pick up their cars fix them and return them to the customers now the customer will then be reimbursed for any taxi or rental car expenses that they might incur will you commit to doing this for customers nationwide I repeat if you want me to repeat it I won’t be the language being translated chairman let me address that questions because I know local here be delighted yes I heard number of instances that when this recall news came out I think number of customers who were very afraid and our leaders are fully behind it and leaders took care of a customers very well in many instances did ask when to pick up their cars and then also gave them a turtle rent-a-car for for the time that they’re not able to do and this RICO process is really going on I think there is a good understanding now on the part of the customers that the cars are being fixed well and they are confident about that I guess my question is are you just doing this in New York or is this something that you’re gonna do no this is they have won all of all over the world I mean the nation nationwide yes okay so I just want to make certain you know we have that understanding because I understand it’s going on in New York and the last and the last question I have for you is that mr. Toyoda you have offered a brake override feature for some recalled vehicles why haven’t you offer that feature for all toyota vehicles I know chato said to me research data document I know you’re kissing kisaku no gain to neva and okhta get there and you’re to audit about using your mod tournament allow me to explain the situation a little bit you pull my factors contributing to the unexpected acceleration I believe can be roughly classified into four categories so to that very dense rotor no ego Neru are this moisture to you hurried skycutter toka I know it’s kind of much lighter by you you’re not talkin about mini Ramos samba maybe I had a clue Monaco saw you on a Monday it’s so stay you’re too many booty no cause ornament I know now you got your to the art oh honey

DeCoster Yuma’s first problem with electronic throttle system secondly the way in which a car is used or misuse of the car and thirdly the structural aspect of the vehicle and fourthly the structural aspect of the parts used in the vehicle so these I understand are four four major factors contributing to an expected acceleration so dissonance is dr. Marashi Lomo scotia demo yogurt Oh nan deo pio Quixote she’s rude abandoned IT no concept they said chaos story muscle the mattis Arriba pyon-kichi Sharon you chose a demo meet certain atossa demo chromatic asado ah miss Carter or MSA no day vacation Oh Mon devanne I told you Clooney toxeus taurima’s and of that the electronic throttle control system is designed based upon the concept of safety first and therefore whenever there is any abnormality or anomaly there in that system the fuel supply to the system is cut off and even under a very vigorous testing conducted internally or by Nitza no problem and malfunction was identified and therefore I’m absolutely confident that there is no problem with the design of the e.t.c system Saturday I know me – no no no or do you they custom akamai maangchi Yokosuka lobster doors ricotta you can walk Motel ug so juice is master surrani and Jo Kazuto many hmm sorry master vos load suka suka Tony Kimi master um however placing emphasis upon the fact that customers do have concern as to the possibility of unexpected acceleration which may result from the remaining three reasons in order to offer extra measure of competence as a chairman has just mentioned we decided to add brake override system yeah miss again a yes or no I think that’s I’m trying to get to yes and no because I mean know that I know judo code a Symbian uh-oh hang la comarca he said to me about the keema Sangha okay extra money unleashed an optimal tammini he’s okay me congratulate all uses your state made master the Senate’s happiest are torn of Karuma okok Samaha and she still notated a cool a kuma any boso chakra at the unique IO story much I yield to congressman i sir but I’m trying to find out that a yes or no let me address in a different perspective we are just for the record we are putting break overs right system on all the models for North America coming after dying by the end of this year and now probably your question is retro actively what about the existing models we have already announced yeah let’s have our own and then yes 300 and then is those are already included in as an additional measure when we recalls and now we have recently announced Tacoma which has a very high complaint late and then added to a Venza and Sequoia this covers probably about my recollection is correct 72% of the recall population and any older one technically it is not possible and therefore we think we have covered but we do not you know stop it there we carefully monitor the situation by the next year with this new model with POS coming in with this retroactive actions I think we will quite sure will be quite sure that it will be very much lower than the industry average I was most narrow I yield to the gentleman from California Thank You mr. chairman and the Chairman has proven that he can ask a question so complex as to even be difficult for people of your great knowledge and it doesn’t surprise me let me ask in a different way the same question so that we all on the dais have clarity and and mr. Nava I will put this one to you in order isn’t it true in order to use a break or events break override system like this your cars depend on electronic systems they depend on microprocessors and they depend on

engine control modules that could actually simultaneously reduce fuel when sensing through the data bus that the brake has been pushed isn’t that correct you are much better if you could Tuffy done I am i I think I’ve I believe so so I think for all of us here who are concerned of course about failsafe and acceleration caused by electronics I think I’m asking you isn’t it fair to say that although electronics could at times be a problem and you have your people have not eliminated that the solution is in fact electronics in this case and that’s what’s going to give the higher level of safety well I can only say that this is an added measure of to a customer confidence and of course it I do not mean to say is solve all the problems yes Helen I understand that in the earlier testimony there were some discrepancies perhaps between how secretary LaHood would explain certain technical occurrences and how you would is that correct that you would like to be able to correct the record on some areas of secretary LaHood’s testimony I’m not quite understand what specific comments are you referring to I guess I would welcome that if you would like to we would offer you the opportunity to submit for the record any technical Corrections in what secretary LaHood’s questions and answers were during the earlier testimony well we’ll be glad to sort of full record thank thank you and then I would ask that we put up the unattended acceleration exhibit that I showed earlier and I put this up for both of you because in your current advertisement on TV you said something which I thought was extremely profound in a high goal you said that good companies fix their mistakes and great companies learned from them in the case of the unattended acceleration in 2007 there was a problem in the United States for which the floor mats were changed there was a problem in Japan with a different model but similar in floor pedal in which the Toyota pedal itself was shortened and now in the case of all these models there is an electronic upgrade additionally to prevent an accident like we had in 2009 would that be the outcome today the outcome of the recall including the electronics upgrade to advanced brake override is that the type of learn from your mistake that we can expect in the future on any problem that develops Nakano you say Nantucket or Disney and a shuttle rocket cannon Masuka no panting any Java so Emond I gotta talking you at this name I know since in a tie today not on dicto you coat oh god I’m s I do not know this situation you referred to about 2007 but generally speaking whenever a problem occurs Toyota addresses those problems in the most sincere manner and attitude um yes please I came to know this Japan’s problem to be shameful only in a previous hearing you mention if that was a very first time that I ever heard and therefore let me look into that if it is correct or not but at the same time I think we’re the company that we learn great lessons from me from this instance and we try to do more so I think this is you know we are committed that we try to remain as great company not at just good company so I think we have a full commitment over present and then he has just said and we have many many measures already taking place I don’t want to go no I appreciate that and I have a copy of documents that you have provided to us concerning the the Toyota blade which is the Japanese only vehicle and we’ll deliver that to you for your further update my second and only other question secretary LaHood talked about wanting to but not necessarily having the transparency of worldwide sales and problems will you agree mr. Toyota to be the company that leads by providing the

u.s. Nitsa with full transparency of your worldwide observations and help set a model for all the major companies here in the US I know so no I know Cosmo enticed Eva I know yesterday I – – I know isn’t the code or week or month like I could see no it mastaba toboni just take can see it’s us take our cheek you know hora in in steel cut to unique and a tamale master so you’re in ecology must stop oh so now you’re a chick you know Oh Jo hole you re a time reading every time I know oh hi say well Emma so tonight’s very much the global quality coming in Chi you know what I co-chaired a yacht okay she died ko saing has no Sanjana keynote EST remis sake mother need a coconut America Movil a catchy keynote I say tonight a co human daily so Menkaure so stay open e curriculum they could tell you tell you what about diamonds to that question I clearly say yes in the past case is a recall or problem solution in making decisions we based our decision on two issues the technical our consideration and also whether or not the regulations and statutes of different parts of the world are complied with and in that sense going forward we intend to exchange and share information more timely throughout the world and we are now setting up the system for that purpose and for that specific purpose we are going to establish the Special Committee on global quality which I personally will be heading and the very first meeting of that will be held on March the 30th and for that purpose we are now setting up the structure where the United States and other parts of the world will be represented in the meeting of that special committee of Global Committee for global quality and we are now introducing this system so that we really face up to this problem openly and transparently thank you and thank you as chairman for your indulgence I recognize the gentleman from Pennsylvania mr. Kanjorski thank you very much mr. chairman gentlemen welcome the United States I have to compliment you mr. Toyoda for deciding to come here and testify actually it’s quite a unique experience in terms you’ll be able to brag about the fact that you withstood the interrogation of a congressional committee and that’s a a Badge of Courage in the United States but if you’d heard any of the examiners questions of the secretary and I think now yourselves we’re a little disturbed by some things that I am too a long very sympathetic to the fact that we want to encourage international business we want to certainly open our markets to your manufacturing from Japan or your ownership of manufacturing facilities in the United States but I thought I heard this morning the secretary say that you had a problem in Japan that was detected in oh seven and then subsequently the same problem was detected in Europe but there was no communication of that problem or the prospect of that problem being contained an American manufacturer automobiles or your products being sold in the American market if that impression that I have is true that’s very troubling to me III would like you as best you can and I understand the difference in language to explain whether or not you’re giving the American automobile purchaser your customer and the American market the same level of attention that you give to the Japanese market or the European market and if you didn’t in the past what are you going to do to make sure that difference doesn’t occur in the future we can’t afford to have a lie a leg of a year two years of finding out something that is defective in an automobile I suspect the stock price is reflecting

that to you that that can be very costly I hope it doesn’t destroy a great deal of the equity of your company and I hope you can move on and move beyond this question but I want I want to hear in my own mind that there hasn’t been this difference between the home market and the American market the home market in the European market the home market and European market and the ignoring of the American market the American customers if I may I know America Naumann are at the Innova Dakshina totila second okay Dominique I know hon tony honest ii sabisu una Jacinto they overnighted Yahoo knee amok taurima’s Sarah a congressman was taking a Tory a mama day no car no speed Oh God – oh so no Oceano CH oh no speed oniy two Toads Takata a Toyota Corolla EST remis so stay – you got a second ain’t you got any it’s a journey not acara Yabba fq Chacho whoa or Kaku a cheeky no Tonto Oh motorboating Yuri Yuri a cheeky no Jahoda Innova heidi hace una carta Jeanie Tracy taurima’s sorry my mistake a con Chi no hints term on tiny economist Eva Domino grant oka yes oh no oh cool Cuisinart my no okok so Monica whoa Yuri timely knee hon Shivani story onna yet I say whoa Oh tonight we must we provide the same services with the same degree of care to the customers not only in the United States but customers world over however as congressman has just pointed out our speed of expansion outpaced our development and training of people working for us and right now I’m fully aware of that in July last year I became president and since then I appointed executive vice president’s responsible for each regions of the world and by doing so we established a system where information of different regions can come into the head office can be captured in a more timely manner and on top of that with specifically about this quality issue that we are faced with at the moment we respect the concerns of the customers or customers voices before they are expressed in the terms of in terms of a complaints we are going to capture those so that information be conveyed to the head office in a timely manner and we are putting in place a system to enable us to do that let me address if I may specific issues of defect information sharing which was also ranking members Issa I says they no question I think we should have done a better job in sharing those cross regional defective information what have you determined it was the cause that you did what it was it is culture is a psychology is it something that happened in the communications breakdown just seems absolutely when you go into a certain database you can find it but it is not I must say I don’t know very well but positively shared now going forward what we are going to do is one of the things I’d like to so report to you that we are making now one American we call product safety executive is a part of recall decision-making as part of the global committee headed by one Japanese one American and maybe later added from other regions like Europe and China and then in that all the information are shared there so that we can evaluate and know what’s going on and other part of the world in more transparent way so this is the change that we are making you know now let me ask you just a side question for me does Japan have a torch system similar to the United States where a suit can be brought for damages

by these injuries and loss of life I believe we do we have a little bit of a content sometime going on in the United States we call it tort reform totally and and it’s an argument that my friends on the other side very often used in the medical argument feel that if you had tort reform and you just allow some people to die or get severely injured without recovery that would correct things I think you’re making the best argument in the world I’ve ever heard of why we should have the present tort system and I hope you recognize what kind of payment for your the injuries and the damages suffered by innocent American citizens who like myself have have grown up in an atmosphere that we had a great deal of faith in something that was stamped made in Japan that it was of the highest reliability and you you injured that thought process in the American public and you will be called upon under our system to pay compensation for that I now yield to the gentleman from Indiana on that note let me just preface my remarks by saying we really need tort reform we should just forgive these companies and let them kill our forever mind we just have a difference of opinion first of all let me thank you both for being here I think it’s very very good that you came it shows real concern on the part of Toyota and I also want to compliment Toyota dealers around the country I went to a couple of Toyota dealers this last week to take a look at what’s going on and their working day and night to correct these mistakes and so to your Toyota dealers I want to say thank you for working so hard to correct these problems now after having said that first of all I have a case here that took place in 1997 I don’t want to go into all the details on it but a woman was injured in an automobile accident involving a Toyota she lost both legs and I would like for you to review that and if you wouldn’t mind giving me a response would you do that for me yes I’ll have my staff give this to you so that we can talk about that the second thing I want to do is I don’t understand this look I went to the Toyota dealer and this this is the floor pedal mechanism that’s used in Japan and in some cars here in America this is one that’s manufactured by CTS here in the United States and it is yes and they have done a good job on this this pedal here has been involved in the accident cybo leave that have caused the fatalities this one here there’s been sticking and they’ve been putting a shim in there little metal piece in to correct that and my question is why the difference these are going in the same model car and why do why do they have different specifications because this one here has caused the problems that’s created some deaths and this one here’s had some sticking problems which have been created or corrected but it’s different and so when you’re manufacturing the same car why is it that they don’t meet the same exact specification it seems to me that would be easier to correct than having one that’s made one way and one that’s made another way I know Karuma but it’s near journey LaMontagne Carson Monty no booing Cara Narita taurima’s the Sunoco mono say Kayla serious octo Kohaku stay yeah teratomas boracay Tamara teratomas as a congressman already knows a core consists of some 20,000 to 30,000 parts and I would like you to understand 20,000 to 30,000 parts and I would like you to first of all know know that we work together with the suppliers in designing those parts mr. Abedini Abdullah if I might if I might interrupt I understand that you work with the suppliers but the designs are different this one here has a different mechanism in the bottom than this one and I’m just wondering why if it’s the same model car there is a difference yes Cara Mohini Ottawa SiriusXM nah it’s a Coast a toyota gazoo shown in suit oh you ho ho toh OH Toyota no naka no engineer da si kissing – you know ho ho ho Thomas a con queso no Peter in economist IVA areo Hotah mecir 1600 SE cayó Watterson Omaha sean is Ruto yokatta Joe Torre’s are steeped Erasmus timoni

Nahant American e co SUNY at I salute you tuna serious action Nisha burrito Yoko today if Tata no se que se que Sarita a paella detect up to you when you got a great director – – some parts are designed by our suppliers with Toyota approving that and in other cases a turtle’s own engineers design those parts so there are two approaches used in the case of this specific pedal the suppliers designed the pedal and Toyota proved that and in both cases we were able to identify two excellent suppliers whose parts were worthy of us to use in the United States in Japan and therefore those two parts designed by our suppliers were used in this pedal Cerrito thermosolar serious accent Romani aho staccato you know can- avoidance so amid Eva study no serious action Dakini Heihachi under Danica una Jackie no Hadassah behemoth kotero rockin omega2 yabba fukusa hatsue Adrian AMA donut holiday oka narrator koto mo or acai Tamara tight you could – and on top of that it is a philosophy to grow together with our suppliers and in that sense rather than placing order with one single suppliers we a source the same parts from multiple suppliers that is to say when there are suppliers that can supply parts that perform the same function we do that and this is another point I would appreciate your understanding no if I might real quickly just say I understand the winners of a problem of this magnitude where people have been killed because of a part and there’s another part that didn’t result in fatalities but there was a sticking it seems to me it would be easier to correct the problem if there was more consistency in the two parts okay thank you very much and gentleman’s time is expired I now recognize the gentleman from Maryland congressman Cummings thank you very much mr Chairman I want to thank both of you for being with us this afternoon and to mr Toyoda I have read your testimony and I’ve listened to it and I can appreciate you saying and meaning that you’re sorry the problem is that it’s one thing to say you’re sorry it’s another thing when it seems as if time after time there are announcements that problems are being addressed and over and over again they seem like they’re not being addressed 2007 fatal crash involving a camera because allegedly of formats a person was killed and we can’t get away from these facts September 2007 you then 55,000 call cars are recalled and I know this was before your presidency August 2009 California fatal crash four people were killed Seiler family September 2009 4.2 million cars recalled and we could go on and on and then just yesterday mr. James Lenz the third said something that was very interesting in basically what he said was that even with the sticky pedal and floor mat problem that there may be this may not account for all of the problems so and he implied that maybe this were some electric funny problems taking place the question becomes at what point do and I know also you want to regain the trust of your customer base but that trust is hard to establish a reassembling when they see over and over again these kinds of situations and they say well why should we believe that things are going to get

better and I know that they have been members on this dais to have said they’ve had some good things too Toyota’s done but I’ve got people in my district who by the way are saying they call and they have to wait to get their cars repaired but at the same time they got to take they have to take the children to the babysitter they’ve got to go and do their marketing yeah I mean this is just practical things that are happening so I’m just asking you how do you say to your customers the people who take their hard-earned dollars in a tough economic time and spend them on a Toyota vehicle how do you say to them that we can trust you now when and I say this most respectfully when it seems as if there is no end to the series of promises and then promises that seem to come short of reaching the goal of safety no more tonight you must know I sincerely regret that some people actually encountered accidents in Toyota vehicles there are no cicada most of us together more I know Dan sister Nova Scotia demo is over at Oh nan deo pio pio taste and then die – no concept the mother said chaos taurima’s as I mentioned earlier with respect to the electronic throttle control system the system itself has been designed based upon the philosophy of safety first and therefore whenever any abnormality or anomaly is detected fuel supply is instantly cut off discussion Nevada again g2g cocktail rocket because I must know that what is the mall or today Guinea in any way a demo Oh sigh against Rianna Gigi no moto you don’t sigh against testable okinawa de texto you must leave mama day – an idea technicality among diver was i’ma send this Cara secured Oh Cara the instrument denied you honey Mosquera Terranova I know you don’t not testable organ chicken but today yatta agains I know to follow Monday night you got almost another code Imus that notwithstanding accidents actually happened and therefore I instructed that every effort be made thoroughly to reproduce and duplicate the accidents and up until yesterday those big duplication tests have been repeated and conducted however no malfunction or problems were identified based upon the tests conducted internally within Toyota and therefore based upon such thorough examination and testing conducted within Toyota I have been saying that I have no question with respect to the integrity of our ATC system the Congo Tokioka Tomo akio aksana Vera s daija process Detrick mostella event today today coda oh it ain’t them SSST hoc in matazano Qatar Doha don’t enjoy Hokkaido stricto yo katoa security Guinea estimate transparency Oh Eureka komiteh the keone kaity state you could not do much and therefore in cooperation with the authorities concerned we already announced that we are going to thoroughly examine and investigate the outcome and data recorded in event data recorder and the findings will be made public and disclosed in a prompt and timely manner and changes will be made in a very transparent manner so that that be assured going forward Thank You mr. chairman thank you very much and now you five minutes to the gentleman from Florida mr. mica first of all mr chairman I’d like to request unanimous consent to include in the record the specific information on the administration’s proposed 2011 budget requests which cut National Highway Transportation Safety Administration’s vehicle research program and also

further reduce the amount for vehicle safety research in the budget I didn’t have this further if that could be inserted also in the budget I mean in the the budget information in the record appropriate to my previous questioning of the secretary without objection I will review it and then no and we will but I reserve the right to reject well this again okay and I’ll proceed this is indeed a very embarrassing day for the United States National Highway Safety transportation administration it’s equally a very embarrassing day for Toyota to have the son of the founder of Toyota here as a chief officer to come before the United States Congress I’m embarrassed for you sir I’m embarrassed for my dealers that I’ve talked to I’m embarrassed for thousands of people hardworking Americans who work in I guess over ten plants across the United States I thought actually I thought we were doing pretty good because that Toyota was taking quite a hit and I’ll put in the record later on your safety record and some of the things you’ve done positively information that that I got until I was shaving the other day and heard the news of the of the memo that was a that was prepared by a gentleman who I didn’t even know his name bring over a copy of the July 6 Inaba memo I hadn’t read this actually the details of it and today mr. Inaba this is one of the most embarrassing documents I’ve ever seen you’re in your preparation of this you embarrassed all the people I represent those hard-working people across this country this is absolutely appalling sir that you would identify and I know you were on the job only a few days but key safety issues and identify as one of them on page 14 of the document you prepared and you identified the the problem of of the the safety issue and with with regard to this these these pedals then on page 16 wins for Toyota safety group how could you possibly put in writing this and list as wins for Toyota it’s particularly under the defects entry and negotiated equipment called recall on Camry ESS a saved a hundred million with no defect foul I think you’ve done a great injustice sir in in this eye I don’t know if it was it’s not a rookie mistake obviously you’ve been with the company but to prepare this document to undermine the good working people and the reputation Toya has an outstanding reputation and actually has had a great safety record but this decree discredits everyone how would you respond sir yes sir first of all let me get the facts straight this is the only few days after my arrival to the company and then had you been with Toyota before yes I long 40 years in total sir but this is after two years of officers away from Toyota I also first became the president of Toyota Motor North America and then I visited one of the few days to Washington office I had no idea what the company was and that’s why our staff wanted to give me a a orientation material I’m stunned to find your name on the front page address to me I did not know that till today okay and the point is that you know I was in the middle of orient or in station tour yes I mean I mean I didn’t made it very clear my name is on it it is presented to me not me made it but that’s all I was aware of this this is present again this is information you had in your

company prepared if if in the future any company prepared a document like this and presented it to anyone in the company to me it would be to me it would be one of the most interest things you could do to anyone’s reputation I know it says on the side confidential and all of that but do you realize the people that have been let down me the the people in my district who go to work every day in those two Toyota operations that the sales and already reputation has been severely damaged by by what’s been done here I honestly with my honesty I do not recall the meeting in any depth but at the same time now I see that I think I must say to you that it is so inconsistent with a guiding principle of Toyota and my feeding is and therefore it’s it’s just to me it’s unbelievable yes finally met you the same way O’Day you’re in charge of the company and have that response that’s a responsibility can you assure the committee that this is not the approach this will not be the approach of Toyota now or in the future because now I’m getting more familiar I’m a prisoner of that company I am going to rectify that if there’s a horn of it the gentleman’s time is expired and now let me just make announcement before we yet move any further there’s a vote on the floor and it’s actually on three votes and we plan to continue and of course the gentlewoman from Washington DC will assume the chair so but I also want to let these number fraud I know that his time has long expired yes sir no sorry I know what you know how could story masane this garage to comment on this guy I know Al Attar ashishot yoga challenge talk to you soon on IO war presentations through to you know uh Goku Goku no contribution among SUNY a O’Connor a tell to you who need a moment ah yes oh no Serena not coming here Ted a key event I know oh so no Oman Oh God so you rocket Illuminati overnight you who need a panda on Davos I must have a almost Aramis I do not know about that specific document you referred to and I do not know the comment however generally speaking when a new person takes office as president it is customarily done in any division to make presentations on various contents of substances going on in the company however generally speaking the substance and contents of such documents does not affect the entire company in a way to cause drifting of the company itself the gentleman from Ohio mr. percentage has five minutes you can or you can if you only have a few minutes left I’m at I’m calling on people who are left well I’m gonna go to mr. Connolly then since it goes on this side we are mr. Connolly you have five minutes thank you madam chairman mr. Toyoda welcome to the committee when did it first come to your attention there was a problem with acceleration of your vehicles anymore I was appointed president in July and there is a major difference between the

sort of information I had received prior to assuming the position of president and the information I get to receive after becoming president and therefore there may be some difference between the information that company may have had as a company and the information I personally had as president however I will clearly state whatever I know and even in those cases where I do not know or I do not have any knowledge of I will look into the matter and supply the report to you disco you go sumo Natasha master ah Hakuna Matata it you so responding specifically to your question of when I would say at some time at or the end of last year toward the end of 2009 that is correct okay were you aware the fact that there had been complaints by consumers long prior to that time – 30 mas this is not only not of my knee so is your whole heist after you talk or shows you key right now I’m a world that how ever did I have that sort of information before I became president I didn’t have that sort of information with the same degree of accuracy that I do now but you had some awareness we just heard from secretary LaHood prior to your testimony and he talked about the fact that nitsa sent a team to Tokyo to meet with the top leadership of Toyota to bring to their attention as forcefully as they could the fact that there was a problem and that it needed to be attended to that meeting was prior to your testimony just now that you only learned about this problem in December of last year were you not aware of the fact that Nitza had sent a team to Tokyo headquarters Konoe Kenny can’t see my still are rubbish combos Oh God he’s currently below no I don’t wanna that needs a no homo you katoa don’t mess it up so Don I yield so no GP neat I saw what I saw – no on that specific point that was a matter handled by the division in charge of quality assurance and certain person in that division I understand received the visit from Nitza representatives and had discussion with them I know that however I do not know the specific content of the discussion nor the timing of that meeting well there seems to be some discrepancy again we’re trying to get at what did we know and when did we know it to sort of gauge the companies the quality of the company’s response to the serious problem on behalf of its customers and obviously we have an interest as American congressmen and women to protect our constituents who are your customers and we know that the company certainly was made aware by US officials through nitsa who flew to Tokyo for this express purpose and you’re telling us in your testimony you didn’t know about it you were aware of that trip and that meeting but you weren’t aware of the fact that there was a serious acceleration problem with your vehicles until just a few months ago December of 2009 is that correct because if it is correct given your position in the company and your family’s association with a company that would constitute extraordinary compartmentalization and nonito meeting

laptop so now you need to go study myself I personally know that there was a meeting with mr. representatives but I do not know the content of that meeting okay I’m just gonna ask one more question and that’s of mr. Inaba I’m looking at this confidential document that was made available to the committee yes my colleague was just referring to and and on one of the pages it has a you know just a series of tics like this and the bottom tick in your briefing I understand what you said it says secured safety rulemaking favorable to Toyota what and I’m gonna run out of time but could you at least ask answer what was your understanding of what that meant as I said I don’t recall meeting in any depth and I had no idea about this Riko processor back then therefore I have very little knowledge about it and funny enough that I only recall quiet cars in that whole list of that you know of course now I made aware of this you know that was you know a restriction of that but I don’t recall I am an chairman I know my time is up but I document is dated July 6 of 2009 gentleman’s time has expired mr. Davis thank you madam chair and I’d like to thank you and also a ranking member I so members of committee for the allowing me to from my position on the Ways and Means Committee on this oversight hearing on Toyota’s recalls I had the honor of representing Toyota’s North American headquarters in Erlanger Kentucky and wanted to voice some perspective from from our region a Toyota directly employs more than a hundred and seventy two thousand in plants and dealerships in the United States and it’s Toyota has an integral part in our economy in Kentucky and investment in the United States of America they maintained operations at a world-class level of quality in the Commonwealth for nearly 25 years the Georgetown facility now manufactures engines in addition to automobiles all part of a 5.4 billion dollar investment in our state Toyota has been an exceptional corporate citizen in Kentucky they’ve given more than 37 million dollars to local charitable groups with missions ranging from education to social services and not only his Toyota’s supported local charitable needs but Toyota has also been one of the Commonwealth’s strongest job creators Toyota North American headquarters in Erlanger Kentucky in the Hebron spart Center supplies distributors across the continent from my hometown of Hebron Kentucky in all more than eight thousand Kentuckians work directly for Toyota and almost 1,500 are in Kentucky’s fourth congressional district additionally ninety Toyota’s suppliers are located in Kentucky creating more than 10,000 additional jobs Toyota’s decades-long reputation for quality safety and service is based on their high standards of quality and innovation and based on their corporate ethic of discipline honor and humility they’ve had a positive and transformational effect on virtually every aspect of American manufacturing and I could speak to this as one of the few manufacturing professionals who serves in the Congress Toyota is as Congress conducts these hearings related to Toyota’s recalled we need to keep in mind Toyota’s willingness to do something unusual in American business politics in the Congress and has to actually take responsibility and ownership for the problem and continue their long-standing commitment to quality and more importantly for the well-being of their customers careless words and unfounded allegations by those who may have other agendas can do irreparable harm to job creation in Kentucky and in the United States at a time when quality jobs are in short supply and unemployed in Kentucky in the Ohio Valley remains above 10% the jobs created by Toyota are more important than ever echoing the concerns voiced by Kentucky governor steve Beshear and other governors across the United States and a recent letter to Congress I urge the members of this committee and my other colleagues to be thorough in their investigations of these issues and to arrive at conclusions based on evidence that is uncovered rather than circumstantial speculation or sensationalism let’s focus on the facts rather than giving way to the temptation to engage in political theater Congress must exercise appropriate oversight in determining if National Highway Transportation Security Administration or Safety Administration is able to effectively identify and comprehensively investigate automobile safety facing issues facing Americans and moreover America needs clear and consistent automotive safety standards apply to all manufacturers in this country not simply one to ensure the safety of the entire American public appreciate your willingness to come and participate in this today and the contribution of your business to our country’s economic strength and wealth

and with that madam chair I thank you and yield back thank you for your comment the gentleman’s time