Toyota's president acknowledged the company's rapid global growth was partly behind a surge in problems that has plagued the Japanese automaker in recent years.
Toyota Motor Corp president Katsuaki Watanabe said the company has improved quality controls and is sticking to its sales targets, including those in North America, despite worries about a credit crunch and a slowdown in the auto market.
Speaking at the Japan National Press Club, Watanabe noted the reasons behind the defects were varied, spanning development, design, production, suppliers and maintenance.
PHOTO: AP
But Watanabe said that at least some of the problems, including time pressures and shortage of experts, stemmed from the company's dramatic growth in recent years.
"That is not zero," Watanabe told reporters, referring to quality problems rooted in the company's expansion.
Watanabe has generally been frank about acknowledging challenges facing the company as it enters markets and builds new plants.
Still, his comments highlight a sense of crisis at Toyota, which is trying to maintain its sterling reputation for quality as it seeks to expand globally, especially in emerging markets such as China, Russia and Brazil.
"The fact that Toyota is growing globally suddenly shouldn't be used as an excuse," Watanabe said.
Last year Toyota, which makes the Prius gas-electric hybrids and Camry sedan, overtook General Motors Corp as the world's No. 1 automaker in global vehicle production, although Detroit-based GM still retains the top spot in global vehicle sales.
Toyota made a record 9,497,754 vehicles worldwide last year, up 5.3 percent from the previous year, beating GM at 9.284 million. But Toyota sold fewer vehicles at 9.366 million to GM's 9,369,524 vehicles. GM has been the world's top seller for 77 years.
Watanabe said he had ordered a six-month delay in some products since the problems surfaced to tackle quality controls. He did not give details.
Toyota has gone over, one by one, each problem, tracking root causes, analyzing and coming up with ways to prevent a recurrence, Watanabe said.
He even referred to a trend he dubbed "big company disease" caused by arrogance among its ranks.
Since 2006, when the alarming rise in recalls began to surface, Watanabe has apologized repeatedly at news conferences in Japan.
He also said he was aware of the concerns about falling US auto sales amid a slowdown in the US economy.
This year is expected to be the slowest in a decade for the US auto industry, but automakers are still predicting sales will pick up in the second half thanks to the federal stimulus package and pent-up demand.
Watanabe dismissed the worries. This year's overall US auto sales are likely to remain about the same as last year and Toyota is expecting its regional sales to rise on year, he said.
Toyota is expecting US sales this year to climb 1 percent from last year to 2.64 million vehicles.
"I feel US economic fundamentals are strong," Watanabe said.
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