Greenwire: Toyota Motor Corp. President Akio Toyoda will testify before Congress next week after saying for weeks that he would not appear in hearings investigating his company’s safety recalls.
Toyoda said he wanted to explain the company’s conduct “in all sincerity” before Congress. Toyoda had previously said the company’s U.S.-based executives would be more prepared to answer the questions, but reversed course after receiving a formal invitation from U.S. House Oversight and Government Reform Committee Chairman Edolphus Towns (D-N.Y.).
The investigations stem from the automaker’s recall of more than 6 million U.S. vehicles after consumers reported problems with gas pedals and sudden acceleration. The massive recalls have prompted serious concerns about the company’s safety record.
Toyoda also is scheduled to meet with Transportation Secretary Ray LaHood, who has threatened the company with civil penalties for its slow response to the complaints.
Separately, the Oversight panel issued a subpoena for all Toyota safety documents belonging to former Toyota lawyer Dimitrios Biller. Biller has sued Toyota under federal racketeering laws, alleging that the company conspired to “unlawfully withhold and conceal evidence from plaintiffs and obstruct justice in lawsuits against Toyota throughout the United States.” Biller has accused Toyota of hiding evidence of safety problems from regulators and consumers. Toyota has filed an independent suit against Biller (Josh Mitchell, Wall Street Journal [subscription required], Feb. 19). – JP