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Toyota issues public apology; to restart production of 8 models
by Ishita Sood - February 2, 2010 - comments
Headquartered in Japan, Toyota was founded in 1937. The company provides financial services through its division Toyota Financial Services. Toyota Group is one of the largest conglomerates of the world.
New York, February 2 -- Toyota Motor Corp. issued a public statement on Monday apologizing to all its U.S. customers for the recent recall fiasco.
“First, I want to sincerely apologize to Toyota owners. I know that our recalls have caused many of you concern and for that I am truly sorry,” said Jim Lentz, president and chief operating officer of Toyota U.S. sales.
Striving to restore its spoiled reputation, Toyota said it would restart the production of eight of its models from Feb. 8 and will fix near about 4.5 million vehicles in North America and Europe.
The news caused Toyota’s shares to rise by nearly 5 percent on Tuesday.
Monday’s move criticized
Monday’s move by Toyota was, however, criticized by many. Some believed it to be a late safety measure, while others felt it had already dented the automakers reputation.
Lawsuits attacked that the Japanese maker had previously ignored signs of trouble. Analysts and dealers said it would take months for the automaker to fix all of the vehicles.
To mend matters, Jim Lentz, president and CEO of Toyota Motor Sales, Toyota's U.S. sales division based in Torrance, Calif., explained in an interview to NBC on “Today” show how the automaker first developed a technical report in late October.
He also denied that the company was ignoring years of complaints and not taking proper remedial action.
“I drive Toyotas. My family members drive Toyotas,” added Lentz. “I would not have them in products that I knew were not safe.”
Toyota’s problem started last week
Toyota’s quality-control issue worsened last week when the automaker announced that it would temporarily suspend production and sales of eight models. The company also recalled 1.9 million vehicles with the same problem in Europe and China.
Safety Research and Strategies, an industry researcher, says it is familiar with 2,262 reported incidents of Toyota vehicles which caused 815 crashes, 341 injuries and 19 deaths since 1999.
Toyota chief executive Akio Toyoda addressed the issue saying, “I am very sorry that we are making our customers feel concerned. . . . People can feel safe driving in the current situation.”
More about Toyota
Headquartered in Japan, Toyota was founded in 1937. The company provides financial services through its division Toyota Financial Services. Toyota Group is one of the largest conglomerates of the world.
However, in 2009 the automaker faced huge loss, approximately $4.4 billion, making it the automobile makers to be severely affected by the 2007-2009 financial crises.