Toyota Chief Apologizes and Announces Quality Management Team

By: Bill Waters
Staff Writer
Published: Feb 5, 2010

Toyota President and chief Akio Toyoda hopes to improve its auto inspection process and makes a full apology to customers.

Toyota Motor Corp. President Akio Toyoda announced a new quality control plan today to address current problems with its automobiles. The auto manufacturer is on the brink of a worldwide vehicle recall that could involve the Toyota Prius hybrid. Toyoda was very apologetic during the press conference.

"The recalls are affecting several models in several regions and have caused anxiety among customers who are wondering if their cars are OK," Toyoda said. "For that we are very sorry," he added. Toyoda also said the cars are safe, "We always put the customer first."

The Japanese auto manufacturer is well known for building cars with proven reliability. For the past 30 years, they built and sold automobiles and have maintained best customer service rating in the industry. However, the recent troubles involving recalls is tarnishing the throne and image it gained just three months ago.

Toyota hopes to improve its inspection process and enhance customer support from experts outside of the company. It will unveil a new system to handle quality control management. It will also seek to increase communication with regional authorities and improve regional autonomy.

On Thursday, the company estimated the financial impact of recalls related to gas pedal and floor mat problems would cost the company $1.1 billion. Following the press conference, Toyota's American depositary shares were up 2.7 percent to $73.70 in recent trading. They are down 13 percent this year.

Prius Hybrid Recall Could Be On The Horizon

The Toyota president said the company was still deciding what to do to fix braking problems with the popular 2010 Prius hybrid. The Prius is a gas-electric hybrid that might be facing brake problems. Most experts say that the brake problem is a software glitch in the vehicle.

On Wednesday, Toyota finally acknowledged that its new Prius that went on sale last year has a braking problem. However, Toyota President Toyoda did not announce a recall. Some owners of the 2010 Prius have reported their brakes do not always engage immediately when they press the brake pedal.