Summary-Main points from Toyota quality chief’s comments

(For more stories on Toyota recall, click on [ID:nN27231388])

NAGOYA, Japan, Feb 2 (BestGrowthStock) – Toyota Motor Corp (7203.T: )
Executive Vice President Shinichi Sasaki addressed the media on
Tuesday, the first time an executive at Toyota’s headquarters has
given a news conference about the massive recall affecting about
8 million drivers.

Following are the main comments made by Sasaki, who is the
highest-ranking official in charge of quality and purchasing at
Toyota.

President Akio Toyoda did not attend the briefing.

* Sasaki is “very worried” about the automaker’s sales
outlook, and has heard that orders have decreased since the start
of January.

* Sees a deeper drop in sales than usual recalls as this is
Toyota’s biggest-ever recall. Toyota usually experiences a drop
of about 20 percent in sales of cars subject to a major recall in
the initial month.

* Did not take cost into account in this recall and is not
aware of the recall’s impact on earnings. Toyota will brief on
earnings on Thursday as previously scheduled

* CEO Akio Toyoda gave Sasaki a “free hand” on costs involved
in the recall, telling Sasaki to put the highest priority on
regaining the trust of customers.

* NHTSA appears to have welcomed Toyota’s recall and gave
Toyota a chance to regain customers’ trust.

* Toyota and suppliers are working on “cost innovation”
instead of “cost cuts”, mainly targeting components and materials
that make up the external design, such as paint, instead of
powertrain components.

* CTS has solid technology. Toyota approved of the design of
the defective accelerator. Accelerators supplied by Denso have no
problem as they have a different structure.

* Toyota will take in to consideration environmental factors,
such as humidity which contributed to the problem of sticky
accelerators, when designing components.

* Toyota chose CTS as a supplier partly to contribute to the
local economy.

* Using several suppliers instead of one helps Toyota adopt
better technology as they compete amongst themselves.

Stock Report

(Reporting by Yumiko Nishitani and Chang-Ran Kim)

Summary-Main points from Toyota quality chief’s comments