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Japanese Probe Recall Delay at Toyota

July 12, 2006

Toyota • Airbags • Engine Problems • Cruise Control • Cooling System • Safety • Toyota Motor Credit • Avalon • Echo • Prius • Tacoma • Tundra --- Reviews • 2006 Prius • 2007 Camry --- News • Toyota Raises Prices, Prius Jumps $400 • Quality Auditor Charges Toyota Cover-Up • Toyota Agrees to Oil-Sludge Settlement • Toyota Camry Named "Car of the Year" • Software Glitch Slows Some 2007 Camrys • Is Toyota's Quality Slipping? • Toyota Delays U.S. Sales of New Corolla to Improve Quality • Facing Massive Recalls, Toyota Executives Promise to Do Better • Toyota Recalls Near 800,000 for July • Japanese Probe Recall Delay at Toyota • Toyota Builds More Efficient Gasoline Engines • Toyota Cuts Entry-Level Camry Price, Boosts Luxury Model • Toyota Dons NASCAR Racing Gear • Toyota Sludge

Three Toyota Motor Corp. executives who are quality-control managers are the focus of a criminal investigation in Japan into whether they downplayed reports of steering problems at the automaker in the mid-1990s.

The steering flaw was cited as the possible cause of a serious accident in Japan that eventually led to a recall by Toyota of more than 1 million vehicles last year.

Five people were injured, one of them seriously, in Kumamoto in August 2004 when the steering of a Toyota Hilux Surf SUV failed and it hit another vehicle. The SUV was built in 1993.

Toyota earlier announced the recall of 1.2 million vehicles sold all over the world. The automaker said there were 18 reports of problems with the vehicles overseas but no injuries.

Toyota, said in a statement that it was cooperating with the investigation conducted by the Kumamoto police in the southern Japanese island of Kyushu.

Investigators are looking into whether the quality control managers were negligent in dismissing early reports of steering problems with Toyota vehicles.

Toyota prides itself on vehicle quality but the Japanese investigation highlights the pressure on auto executives dealing with reports of problems and is deeply embarrassing for Toyota.

The Japanese automaker is on track to overtake General Motors Corp. to become the No. 1 automaker worldwide. Toyota officials say they are working to maintain and improve quality, even as the company expands rapidly and absorbs thousands of new workers and managers.

Toyota quality came into question last year, as U.S. vehicle recalls of the brand more than doubled although recalls were down industry-wide. The increase at Toyota was due largely to the recall of 4Runner sport utility vehicles and Toyota pickups equipped with the faulty steering.

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