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Boast returns to haunt Toyota executive
Source: Reuters
23 February 2010

WASHINGTON - A document claiming Toyota Motor Corp saved over $100 million by getting U.S. regulators to agree a cheap fix for unintended acceleration problems raised pressure on the company's president as he arrived in Washington to prepare for a grilling from congress.

Akio Toyoda is set to testify before the U.S. lawmakers this week in an effort to contain a safety crisis that threatens the reputation and continued success of the automaker in the market that made it a global powerhouse.

Toyota has recalled over 8.5 million vehicles globally in recent months for problems including sticky accelerators, accelerators that can be pinned down by loose floor mats and a braking glitch affecting its hybrid models.

The company said on Monday it had received a federal grand jury subpoena for documents related to unintended acceleration that led to the recall of millions of cars in the United States.

Regulators believe five deaths are associated with floor mats and are reviewing up to 29 other fatality reports to see if they are related to unintended acceleration.

A 2009 internal document turned over to lawmakers shows Toyota's Washington D.C. staff trumpeting savings of more than $100 million by convincing regulators to end a 2007 investigation of sudden acceleration complaints with a relatively cheap floor mat recall.

The document seems certain to add to the high-stakes debate about whether Toyota missed or ignored complaints about sudden acceleration in its vehicles and whether U.S. safety regulators were tough enough.

The U.S. Department of Transportation said the document highlighted Toyota's slow response to the safety problems.

"Unfortunately, this document is very telling," said department spokeswoman Olivia Alair in an emailed statement.

Toyoda, who is set to testify Wednesday after initially ruling out such an appearance, has acknowledged that the automaker founded by his grandfather let its standards slip during fast growth over the past decade.

 
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