Thursday, March 4, 2010

Toyota apologizes to European consumers




(News Terupdate) - Toyota Motor Corporation continued its worldwide damage-control campaign with an apology issued by Vice Chairman Kazuo Okamoto to the automaker's customers in Europe for its safety issues and the concerns that they have caused.

Okamoto's apology Monday, read to journalists on the eve of press days at the Geneva Auto Show where Toyota will unveil its hybrid Auris HSD compact and the Lexus CT 200h, a compact hybrid hatchback - follows public apologies by Toyota President Akio Toyoda in China and the United States.

Analysts said going into the Geneva Auto Show that Toyota would have to do more than show appealing new products to win back customers, but it will have to persuade consumers it is taking steps to identify all safety issues and correct them and any systems.

Okamoto pledged that the automaker is "taking a fresh look at every process in our operations," including design, manufacturing, sales and service.

Toyota has issued global recalls totaling 8.5 million vehicles since October for sticky gas pedals, faulty floor mats and glitches in braking software.

Though it is the world's largest automaker, Toyota's position is far less dominant in Europe than it is in the United States.

The Japanese automaker has just a 5 percent market share in Europe, a very fragmented market with many national brands winning favor with domestic consumers, like Volkswagen in Germany, Fiat in Italy and Citroen and Renault in France.

Speaking later to reporters, Okamoto said Toyota never set out to become the world's largest automaker, but that the company viewed the achievement as consumers' response to Toyota's quality. But he acknowledged that the recalls have forced a rethink not on the company's size but its response.

"From now on, when we have customers coming to us to say we want to have your car delivered to us, maybe now we will ask them to be more patient so we will really give them optimal quality," he said.

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