Removing the car wheel

NAME: JPN TOYOTA 20100217I TAPE: EF10/0151 IN_TIME: 11:06:06:12 DURATION: 00:01:50:15 SOURCES: AP TELEVISION DATELINE: Tokyo - 17 Feb 2010 RESTRICTIONS: SHOTLIST 1. Tilt down from Toyota sign to exterior of Toyota headquarters 2. SOUNDBITE (Japanese) Akio Toyoda, Toyota Motor Corp. President: "Once we found this problem, we immediately acted to deal with it and we are proceeding with it currently. I want you to understand that it is not that we are evading or cheating." 3. Various of media 4. SOUNDBITE (Japanese) Akio Toyoda, Toyota Motor Corp. President: "As for who will attend the US Congressional hearing, we understand that they summoned Mr. Inaba, the US Toyota President (Yoshi Inaba), thinking he would be the most appropriate person to speak there. I would like to give my best support from headquarters for President Inaba to handle it well." 5. Cutaway of media 6. SOUNDBITE (Japanese) Akio Toyoda, Toyota Motor Corp. President: "Toyota''s basic policy was to produce only what we can sell. I now have to reflect on the fact that we broke that rule by ourselves. We were rushed to increase the production volume, but, we did not spend enough effort and time for raising human resources who would support our quality standard." 7. Wide of Toyoda and Shinichi Sasaki, Toyota executive in charge of quality controls, at news conference STORYLINE Toyota is looking into possible power steering problems with the hot-selling Corolla subcompact while its president said on Wednesday he won''t be attending the US Congressional hearing on the automaker''s safety lapses. "They summoned Mr. Inaba, the US Toyota President, thinking he would be the most appropriate person to speak there. I would like to give my best support from headquarters for President Inaba to handle it well," Toyota Motor Corp. President Akio Toyoda told reporters. He said Yoshi Inaba, who heads Toyota Motor Corp.''s US unit, was more familiar with the US situation and was the best man to deal with the hearing. Toyoda said he was still making plans to go to the US, but dates weren''t set. But in an alarming disclosure of a possible widening of Toyota''s recall crisis, the Toyota executive in charge of quality controls, Shinichi Sasaki, said Toyota was taking seriously the complaints about problems in power-steering in the Corolla, the world''s best-selling car. He said the company was investigating what might be wrong. There have been fewer than 100 complaints, he said. Toyota has recalled 8.5 (m) million vehicles globally during the past four months because of problems with sticking gas pedals, floor mats trapping accelerators and faulty brake programming. The US House Oversight and Government Reform Committee is holding a hearing on February 24 on Toyota''s gas pedal problems. The House Energy and Commerce Committee has scheduled one the next day. Inaba, Toyota Motor North America chief executive, Transportation Secretary Ray LaHood and NHTSA Administrator David Strickland are expected to testify at both meetings. The Senate Commerce, Science and Transportation Committee has scheduled a March 2 hearing. Sasaki said drivers may perceive a strange feeling as though they were losing control over the steering, but it was unclear whether the problem was with the shifts in braking systems or a problem with the tyres. Speaking at Toyota''s Tokyo office, he said the company was considering a recall, and was ready to come up with any needed fixes as soon as possible. The number of possibly affected vehicles is unclear, he said. Toyoda reiterated his promise to put customers first in beefing up quality controls at the world''s No. 1 automaker. He promised a brake-override system in all future models worldwide that will add a safety measure against acceleration problems that are behind the recent massive recalls. The system is a mechanism that overrides the accelerator if the gas and brake pedals are pressed at the same time. Toyoda said the company was not evading or covering up anything.

Mechanic changing car brake pads

TOYOTA The House Energy and Commerce Committee, Oversight and Investigations Subcommittee hearing with David Strickland, the administrator of the National Highway Traffic Safety Administration and James Lentz, the President and CEO of Toyota Sales USA entitled "Update on Toyota and NHTSA's Response to the Problem of Sudden Unintended Acceleration" 12:00:00 12:07:46 RAYBURN OFFICE BUILDING, WITNESSES ARE DAVID STRICKLAND, 12:07:48 HEAD OF THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 12:07:53 AND JAMES LENTZ, PRESIDENT OF TOYOTA MOTOR SALES, USA. 12:07:58 THIS IS THE THIRD CONGRESSIONAL COMMITTEE. 12:08:09 SEVERAL ACADEMICS AND ENGINEERS HAVE DESCRIBED$Z 12:08:12 GILBERT'S WORK AS SENSIBLE, REASONABLE AND LEGITIMATE 12:08:16 STARTING POINT FOR AN INVESTIGATION INTO POTENTIAL 12:08:19 CAUSES OF SUDDEN UNINTENDED ACCELERATION. 12:08:23 THESE ACADEMICS AND ENGINEERS HAVE DISCUSSED WITH THE 12:08:26 COMMITTEE A VARIETY OF REAL WORLD EVENTS THAT COULD LEAD TO 12:08:30 THIS SORT OF RESIST TIVE -- TO THE SORT OF RESISTIVE DR. 12:08:34 GILBERT INDUCED IN HIS LAB. BUT TOYOTA'S RESPONSE TO DR. 12:08:39 GILBERT'S TESTIMONY WAS NOT TO INVESTIGATE HIS WORK SERIOUSLY, 12:08:42 INSTEAD THEY AGGRESSIVELY ATTACKED HIS CREDIBILITY AND 12:08:46 MOTIVES. IT'S MY UNDERSTANDING THAT NTSA 12:08:49 HAS TAKEN A DIFFERENT APPROACH WITH DR. GILBERT AND HAS INVITED 12:08:52 HIM TO ITS TESTING FACILITY SO HE CAN DISCUSS HIS WORK WITH 12:08:56 FEDERAL OFFICIALS INVESTIGATING SUDDEN, UNATTENDED ACCELERATION 12:09:00 IN TOYOTA VEHICLES AND CARS. IS THAT CORRECT? 12:09:02 YES, SIR, THAT IS CORRECT. ACTUALLY THE ENGINEERS AT NTSA 12:09:07 HAVE BEEN IN FAIRLY REGULAR CONVERSATION WITH DR. GILBERT TO 12:09:10 ARRANGE A TIME. AND IT'S MY UNDERSTANDING THAT 12:09:12 HE WILL BE VISITING OUR FACILITY IN EAST LIBERTY, OHIO, WITHIN 12:09:16 THE NEXT TWO WEEKS WHERE HE WILL BE GIVEN ACCESS TO OUR 12:09:20 LABORATORY AND OUR FACILITIES TO REPLICATE HIS WORK, TO DISCUSS 12:09:22 WITH OUR ENGINEERS AND ALSO WITH THE NASA FOLKS AS WELL. 12:09:27 HIS WORK IN ADDITION TO OTHER EXPERTS, IT'S VERY IMPORTANT FOR 12:09:31 US TO GET TO AN ANSWER AND WE'RE WELCOMING DR. GILBERT'S 12:09:38 PARTICIPATION. TOYOTA HAS DESCRIBED HIS WORK 12:09:41 AS PONY, PARLOR TRICK, THINGS LIKE THAT. 12:09:44 I SUSPECT YOU WOULD NOT INVITE HIM TO PARTICIPATE UNLESS YOU 12:09:48 FELT HE HAD SOMETHING TO OFFER TO THE DISCUSSION. 12:09:52 ABSOLUTELY NOT. WE BELIEVE HE'S REPLICATED A 12:09:54 SITUATION WHEREAS YOU DESCRIBED, MR. CHAIRMAN, THAT HE COULD HAVE 12:09:58 AN INCIDENT OF UNINTENDED ACCELERATION WHILE THIS BEING 12:10:04 PICKED UP IN THE ECM. THAT IS THE CORE OF EVERYONE'S 12:10:07 QUESTION AND WE HAVE TO TAKE HIS WORK VERY SERIOUSLY. 12:10:12 LAST TIME SECRETARY LaHOOD TESTIFIED, YOU WERE IN THE 12:10:16 PROCESS OF HIRING ENGINEERS. WE'RE IN THE PROCESS OF 12:10:21 RECRUITING SEVERALS. WE'RE BEGINNING THE INTERVIEW 12:10:24 PROCESS. WE HOPE TO GET A NUMBER OF FOLKS 12:10:27 ACROSS ELECTRICAL ENGINEERS, SOFTWARE ENGINEERING AND OTHERS 12:10:34 SOON. THE WHITE HOUSE IN THE LAST 12:10:35 WEEK OR TWO PUT OUT INITIATIVE WHERE YOU'RE TRYING TO SPEED UP, 12:10:40 IF YOU WILL, THE HIRING PROCESS FROM FIVE MONTHS TO ABOUT FIVE 12:10:43 WEEKS OR SIX WEEKS. HAVE YOU FOUND THAT HIRING 12:10:45 PROCESS TO BE A BURDEN IN TRYING TO OBTAIN EXPERTISE THAT YOU 12:10:50 NEED? WE'RE IN THE PROCESS OF 12:10:52 EXECUTING THROUGH THE QUICK-HIRE PROCESS IN THE ADMINISTRATION'S 12:10:56 REFORMS. WE DEFINITELY APPRECIATE THESE 12:10:57 NEW REFORMS AND WE'RE USING THEM TO ADVANTAGE OF HOW TO GET FOLKS 12:11:02 ON BOARD AS QUICKLY AS WE CAN. THE NORMAL PROCESS DOES HAVE -- 12:11:07 DOES REQUIRE SOME ENERGY AND THE REFORMS ARE VERY HELPFUL. 12:11:10 LET ME ASK YOU THIS. TOYOTA INDICATED IT WOULD RECALL 12:11:13 LEXUS LS VEHICLES. HAS THERE BEEN A RECALL ISSUED 12:11:17 YET? THEY SAID IT MIGHT BE AS EARLY 12:11:19 AS TOMORROW. MY UNDERSTANDING IS TOYOTA 12:11:21 WILL BE ISSUING THEIR REQUIRED DOCUMENTS TO NHTSA FRIDAY. 12:11:28 THEY HAVEN'T OFFICIALLY ANNOUNCED A RECALL, BUT IT'S MY 12:11:32 UNDERSTANDING THAT WILL HAPPEN TOMORROW. 12:11:34 THEY HAVE INFORMED NHTSA OF THE ISSUE THAT AROSE IN JAPAN AND 12:11:38 THEIR PLAN OF ACTION. I THINK THERE'S ABOUT 12:11:40 ANOTHER -- THIS IS THEIR TOP LINE OF THE LS LEXUS VEHICLES. 12:11:48 THOSE WERE ALSO SOLD HERE IN THE UNITED STATES CORRECT? 12:11:49 THAT IS CORRECT. HAVE YOU WORKED WITH NHTSA ON 12:11:56 THIS? TOYOTA, THEIR WORK WAS WITH 12:11:58 THE JAPANESE MINISTRY OF LAND INFRASTRUCTURE AND TRANSPORT. 12:12:02 AND THROUGH THEIR WORK FOUND THAT THERE WAS A DEFECT 12:12:05 RECORDING THE STEERING MECHANISM. 12:12:07 ONCE THAT WAS FOUND, THEY REPORTED TO NHTSA ABOUT THEIR 12:12:11 PLANS IN JAPAN AND PLANNED TO TAKE THE STEPS HERE IN THE 12:12:14 UNITED STATES AND WE'RE WORKING THROUGH THE ISSUES OF THE 12:12:17 REMEDY, WHICH I WOULD IMAGINE THAT WILL BE ANNOUNCED ON 12:12:20 FRIDAY. ALL RIGHT. 12:12:21 HAVE YOU GONE BACK THROUGH YOUR DATA BASE TO SEE IF THERE HAVE 12:12:24 BEEN STEERING PROBLEMS WITH THESE LEXUS LS -- 12:12:27 YES, MR. CHAIRMAN, WE HAVE. TO EXPLAIN A LITTLE MORE FULLY, 12:12:31 THE VEHICLE POPULATION INVOLVES THE LEXUS LS THROUGH THE END OF 12:12:37 MODEL YEAR 2009 THROUGH 2010 WHICH IS A VEHICLE POPULATION OF 12:12:40 3800 VEHICLES HERE IN THE UNITED STATES. 12:12:43 THE OFFICE OF DEFECTS INVESTIGATION HAS GONE -- IS 12:12:46 GOING THROUGH AND HAS GONE THROUGH OUR DATA BASE TO SEE IF 12:12:49 THERE WERE SIMILAR STEERING ISSUES. 12:12:51 WE HAVE NOT FOUND A COMPLAINT AS OF YET BUT WE'RE CONTINUING TO 12:12:54 SEARCH THE DATA BASE, EVEN ABSENT THAT WE APPRECIATE 12:12:58 TOYOTA'S BEING FORTHRIGHT AND TAKING ACTION INDEPENDENT OF OUR 12:13:01 OWN WORK. BUT WE ARE LOOKING TO MAKE SURE 12:13:03 THAT IF WE'VE HAD A SIMILAR ISSUE. 12:13:05 THERE WERE ONLY 12 OF THESE INCIDENTS IN JAPAN, IF I'M NOT 12:13:12 MISTAKEN. LAST HEARING IN FEBRUARY I 12:13:13 ASKED THE QUESTION OF ALL THE WITNESSES, MR. LENTZ IN 12:13:17 PARTICULAR INDICATED THAT THE MATS AND THE STICKY PEDAL 12:13:21 ACCOUNTED FOR ABOUT 16% OF THE UNINTENDED ACCELERATION. 12:13:26 HAS NHTSA THROUGH ITS INVESTIGATION FOUND THE CAUSE 12:13:31 FOR THE OTHER 84% OF UNINTENDED ACCELERATION WHICH REMAINS 12:13:36 UNEXPLAINED? WE'RE WORKING THROUGH SEVERAL 12:13:37 FIELD INVESTIGATIONS. WE HAVE 38 FIELD INVESTIGATIONS 12:13:41 ONGOING, LOOKING AT SPAN OF TOYOTA'S UNINTENDED ACCELERATION 12:13:44 ISSUES. WE ARE LEAVING NO THEORY 12:13:46 UNQUESTIONED OR UNTURNED. WE HAVE FOUND NO EVIDENCE OF 12:13:51 ADDITIONAL CAUSES OF THE DEFECT BUT THAT DOES NOT MEAN WE'VE 12:13:55 STOPPED LOOKING. WE'RE GOING TO TURN OVER EVERY 12:13:57 STONE, NOT ONLY OUR RESEARCH ONGOING WITH NASA AND THE 12:14:01 UPCOMING NATIONAL ACADEMY OF SCIENCES STOITD BUT OUR WORK IS 12:14:05 ALSO ONGOING AS ANY OTHER POSSIBLE ISSUES THAT COULD BE 12:14:09 CREATING THIS FAULT. SO WE'RE NO CLOSER TO 12:14:12 RESOLVING THE UNEXPLAINED 84% OF THE SUDDEN UNINTENDED 12:14:17 ACCELERATIONS. THAT IS CORRECT. 12:14:18 MR. BURGESS FOR QUESTIONS. THANK YOU, MR. CHAIRMAN. 12:14:27 MR. STRICKLAND, THE LAST HEARING WE HAD, SECRETARY LaHOOD SAID 12:14:32 THAT TOYOTA WAS -- HAD MADE SOME IMPROVEMENTS AND WAS GOING TO 12:14:36 BE -- THEN TOYOTA STATED THEY APPOINTED A CHIEF QUALITY 12:14:39 OFFICER, THEN WE HAD THE WHOLE ISSUE COME UP WITH THE 2010 12:14:44 LEXUS GS 460, SO DID THAT GIVE YOU AN ABILITY TO EVALUATE 12:14:49 TOYOTA'S RESPONSIVENESS TO THE PROBLEM WITH THE LEXUSES 12:14:56 COMPARED TO THEIR EARLIER RESPONSES? 12:14:58 YES, MR. BURGESS, IT HAS. AND I MADE A COMMENT AFTER THE 12:15:03 LEXUS GX 460 RECALL, THE CONSUMER REPORTS RECALLED WITH 12:15:06 THE ELECTRONIC STABILITY CONTROL ISSUE. 12:15:10 I HAVE FOUND SINCE I'VE TAKEN OFFICE IN JANUARY THAT TOYOTA 12:15:13 HAS BEEN MUCH MORE RESPONSIVE -- I DON'T MEAN TO INTERRUPT, 12:15:17 BUT DID THE QUALITY OFFICER MAKE A DIFFERENCE IN THAT 12:15:21 ENVIRONMENT? I WAS JUST INFORMED OF HIS 12:15:24 HIRING PROCESS, THE OVERALL RESULT IS WE HAVE SEEN BETTER 12:15:28 RESPONSES. TOYOTA'S WORKING THROUGH THE 12:15:29 ORGANIZATION ISSUES, BUT THESE PAST TWO RECALLS HAVE BEEN -- 12:15:34 I'VE BEEN VERY HAPPY WITH THE RESPONSIVENESS. 12:15:36 ONE OF THE ISSUES WITH PROFESSOR GILBERT'S TESTIMONY 12:15:39 LAST TIME, ONE OF THE QUESTIONS HE COULDN'T ANSWER WHEN I ASKED 12:15:44 WAS HOW -- TO GIVE US A REAL WORLD SCENARIO OF HOW THAT 12:15:49 SITUATION THAT HE DESCRIBED TO US WOULD EXIST. 12:15:52 WOULD IT BE CHAFING OF A CABLE HOLDER? 12:15:55 HOW WOULD YOU GET THE CORRECT AMOUNT OF RESISTANCE PLACED 12:15:57 ACROSS THE TWO WIRES, AND I NEVER REALLY GOT A 12:16:02 STRAIGHTFORWARD ANSWER TO THAT. IN WHAT YOU HAVE SEEN SO FAR, 12:16:05 HAS -- IS THAT A QUESTION THAT HAS BEEN SATISFILY ANSWERED IN 12:16:10 YOUR MIND? WHAT IS A REAL WORLD SITUATION 12:16:12 THAT WOULD HAVE TO OCCUR IN ORDER TORE MEET THE CONDITIONS 12:16:15 DR. GILBERT OUTLINED? I'LL DEFINITELY HAVE MY STAFF 12:16:19 AND ENGINEERS GET BACK TO YOU AFTER THE HEARING FOR I GUESS A 12:16:22 MORE TECHNICAL RESPONSE. WE'RE INVITING DR. GILBERT OUT 12:16:25 TO EAST LIBERTY FOR HIM TO REPLICATE HIS TEST. 12:16:27 WE HAVEN'T HAD AN ANSWER IN TERMS OF WHAT WOULD BE THE REAL 12:16:30 WORLD SITUATION TO CREATE THIS FAULT, BUT THAT IS SOMETHING WE 12:16:33 WANT TO TALK TO DR. GILBERT ABOUT. 12:16:40 WILL NHTSA EVALUATE THAT AS WELL? 12:16:43 CAN WE EXPECT TO SEE THE RESULTS OF THAT EVALUATION? 12:16:45 IT WILL ALL BE MADE PUBLIC AND PROVIDED TO THE COMMITTEE. 12:16:48 IN ADDITION TO MEETING WITH DR. GILGILBERT, WHO ELSE ARE YO 12:16:55 PLANNING TO MEET? CONTACTING EXPONENT AND 12:16:57 HAVING CONVERSATIONS WITH EVERY EXPERT WORKING IN THIS AREA. 12:17:00 BUT WE HAVE NOT HAD A CONVERSATION WITH EXPONENT AS OF 12:17:03 THIS POINT. NOW, YOUR CONTRACT WITH 12:17:12 NHTSA, HAVE ANY OF THE INDEPENDENT GROUPS ASKED TO MEET 12:17:18 WITH NHTSA? THERE HAVE BEEN NUMEROUS 12:17:23 CONVERSATIONS WITH EXPERTS AROUND THE COUNTRY. 12:17:25 I'LL BE HAPPY TO GET BACK ON THE RECORD TO TELL YOU WHICH 12:17:28 CONVERSATIONS HAVE HAPPENED. HAVE THEY REFUSED ANY 12:17:32 MEETINGS WITH ANY PARTICULAR GROUPS? 12:17:36 ABSOLUTELY NOT. AND YOU WILL MAKE THAT 12:17:38 INFORMATION AVAILABLE TO US? ABSOLUTELY, SIR. 12:17:42 NOW -- AND I DON'T HAVE THE DATA IN FRONT OF ME, BUT WE JUST 12:17:45 LOOKED AT THE TIMELINE FOR THE UNCOMMANDED ACCELERATION AND THE 12:17:51 THROTTLE CONTROL, THE TWO SEEM TO BE SUPERIMPOSED EVENTS THAT 12:17:54 OCCURRED ABOUT IN 2002. BUT TO THE BEST OF MY 12:18:02 UNDERSTANDING, THEY'RE REALLY, THROUGH ALL OF YOUR WORK, THERE 12:18:05 HAS NOT BEEN A PROBLEM IDENTIFIED WITH THE ELECTRONIC 12:18:08 THROTTLE CONTROL, OTHER THAN THE TESTIMONY FROM PROFESSOR 12:18:12 GILBERT. IS THAT THE ONLY AVENUE OF 12:18:13 PURSUIT THAT IS OCCURRING RIGHT NOW? 12:18:15 WE'RE LOOKING AT THE WHOLE -- THE ENTIRE TOYOTA FLEET IN 12:18:19 REGARD TO THIS ISSUE THROUGH OUR FIELD INVESTIGATIONS. 12:18:23 BUT IN TERMS OF HAVE WE FOUND A DEFECT INVOLVING THE THROTTLE 12:18:26 CONTROL SYSTEM FROM OUR PAST WORK, WE HAVE NOT AT THIS POINT. 12:18:29 BUT THE REASON WHY WE'RE INVESTING SO HEAVILY TO MAKE 12:18:33 SURE WE HAVE A FULL SCOPE OF EVERY ANSWER. 12:18:36 THAT WORK IS ONGOING, BUT OUR PAST WORK HASN'T SHOWN A DEFECT. 12:18:40 WAS MY E-MAIL CORRECT ABOUT THE RHONDA SMITH CAR, FIND THE 12:18:44 CAR AND TEAR IT APART AND FIND OUT THE PROBLEM, YOU DID LOOK 12:18:48 AND RIGHT NOW NOTHING REMARKABLE? 12:18:50 IS THAT -- IS THAT STILL THE ANSWER? 12:18:53 THAT IS THE STILL CORRECT. THE SMITH VEHICLE IS ONE OF OUR 12:18:59 TEST FLEET, OVER 20 VEHICLES TOTAL. 12:19:04 WE HAVE BEGUN WORK ON LOOKING AT HER VEHICLE IN ADDITION TO THEZG 12:19:10 OUR INVESTIGATION WITH NASA. AS I RECALL MISS SMITH'S 12:19:17 TESTIMONY, IT WAS VERY COMPELLING. 12:19:19 ONE OF HER COMPLAINTS WAS NO ONE AT TOYOTA WOULD LISTEN TO HER, 12:19:22 BUT IN FACT NO ONE AT f %WOULD LISTEN TO HER. 12:19:38 ARE YOU FEELING THE CONSUMER COMPLAINTS WERE ADEQUATELY 12:19:42 ADDRESSED OR SHOULD MORE CARE HAVE BEEN TAKEN AT THE TIME THE 12:19:44 COMPLAINT OCCURRED? I'M VERY CONFIDENT THAT THE 12:19:47 OFFICE OF DEFECT INVESTIGATIONS DID, WE EMPLOYED ONE OF OUR BEST 12:19:54 INVESTIGATORS. I'VE REVIEWED IT AND I BELIEVE 12:19:59 THAT EVERYTHING THAT SHOULD HAVE HAPPENED IN THAT INVESTIGATION 12:20:01 DID HAPPEN AND I'M VERY HAPPY WITH THE WORK. 12:20:02 AND THAT WAS THE WOULD, THAT OCCURRED RIGHT AFTER THE 12:20:05 INCIDENT. THAT IS CORRECT. 12:20:06 LET ME ASK YOU THIS. WHEN SECRETARY LaHOOD WAS HERE, 12:20:12 I HAD -- I HAVE A COPY OF THE PUBLICLY AVAILABLE REPORT ON A 12:20:22 LEXUS THAT WAS DAMAGED IN A CATASTROPHIC ACCIDENT IN SAN 12:20:28 DIEGO. THE MARK SAYLER ACCIDENT. 12:20:31 THERE'S A PORTION THAT'S REDACTED. 12:20:32 PARAGRAPH 5. I ASKED SECRETARY LaHOOD IF -- I 12:20:40 DON'T NEED A COPY IN MY HANDS BUT I WOULD LIKE TO LOOK AT THE 12:20:44 UNREDACTED REPORT. I'M WILLING TO COME DOWN TO THE 12:20:48 DEPARTMENT OF TRANSPORTATION OR YOUR AGENCY TO MAKE THAT REVIEW. 12:20:50 I UNDERSTAND THERE MAY BE SENSITIVE INFORMATION THAT THE 12:20:52 FAMILY WOULD NOT WANT OUT IN THE PUBLIC DOMAIN BUT I DO THINK 12:20:56 IT'S IMPORTANT THAT MEMBERS OF THIS COMMITTEE BE ABLE TO REVIEW 12:21:00 AN UNREDACTED REPORT OF THIS ACCIDENT. 12:21:03 WILL YOU HELP ME GET THAT INFORMATION THAT I'VE ASKED 12:21:07 SECRETARY LaHOOD TO PROVIDE TO ME AS A MEMBER OF THE COMMITTEE? 12:21:09 ABSOLUTELY. I WILL DEFINITELY REFER YOU TO 12:21:14 OUR CHIEF COUNSEL, KEVIN VINCENT. 12:21:19 ANYTHING AS LONG AS WE'RE DOING EVERYTHING WITHIN THE LAW IN THE 12:21:24 PROVISION OF INFORMATION TO THE CONGRESS I WILL HELP YOU. 12:21:28 I REMIND YOU WE HAVE SUBPOENA P 12:21:33 POWER, YES, SIR. MISS CHRISTIAN FOR QUESTIONS, 12:21:39 PLEASE. FYI IT'S, MR. CHAIRMAN. 12:21:42 MR. STRICKLAND, IN YOUR TESTIMONY, WE'VE HEARD IT FROM 12:21:47 SEVERAL MEMBERS THAT TOYOTA PAID $16,375,000 IN CIVIL PENALTIES. 12:21:57 THEY SAY THAT'S THE MAXIMUM PENALTY UNDER LAW. 12:21:59 DO YOU THINK THAT'S AN ADEQUATE CAP? 12:22:01 NO, MA'AM, I BELIEVE THAT THE SIZE OF THE REGULATED 12:22:16 M MANUFACTURES, I THINK A $16 12:22:19 MILLION FINE MAY NOT NECESSARILY GIVE THE CORRECT DETERRENT 12:22:22 EFFECT. I'VE TESTIFIED SEVERAL TIMES 12:22:24 THAT I BELIEVE THE CAP SHOULD BE SIGNIFICANTLY RAISED. 12:22:26 I KNOW IN THE MOTOR VEHICLE SAFETY ACT OF 2010 THE COMMITTEE 12:22:32 THOUGHT TO REMOVE THE CAP AND ALLOWED NHTSA THE DISCRETION TO 12:22:38 PROPERLY SIZE A PENALTY. I BELIEVE THAT'S THE CORRECT 12:22:42 APPROACH. THANK YOU. 12:22:43 YOU ALSO SAY IN YOUR TESTIMONY THAT YOU HAVEN'T F %a BASIS 12:22:47 FOR OPENING UP ANY NEW DEFECT INVESTIGATIONS ON UNINTENDED 12:22:54 ACCELERATION. WHAT IS A THRESHOLD? 12:22:59 WHAT WOULD TRIGGER A REOPENING OF THE INVESTIGATION? 12:23:01 WELL, THE TWO INVESTIGATIONS ARE ONGOING IN REGARDS TO TIME 12:23:05 LIMITS. SO WHAT WE'RE LOOKING FOR IS ANY 12:23:07 DOCK THE OR INDICATION THAT TOYOTA KNEW OF A DEFECT THAT 12:23:14 POSED AN UNREASONABLE EFFECT TO SAFETY. 12:23:16 IF THEY DID NOT INFORM NHTSA WITHIN FIVE DAYS THEY ARE IN 12:23:21 VIOLATION OF THE SAFETY ACT. WE ARE REVIEWING SEVERAL HUNDRED 12:23:24 THOUSAND DOCUMENTS IN THAT REGARD. 12:23:25 WHEN WE HAVE COMPLETED OUR REVIEW, IF WE HAVE MADE A 12:23:29 FINDING THAT THERE MAY BE AN ISSUE REGARDING A VIOLATION OF 12:23:33 THE TIMELINESS MANDATES OF THE ACT, WE WILL TAKE ACTION ONCE 12:23:37 AGAIN. BUT THAT IS -- WE HAVE MADE NO 12:23:39 CONCLUSIONS AS OF YET. THE WORK IS ONGOING. 12:23:41 THANK YOU. JUST ONE OTHER QUESTION. 12:23:45 AS I RECALL IN THE LAST HEARING, A LOT OF THE DECISIONS WERE 12:23:48 BEING MADE IN JAPAN AT TOYOTA IN JAPAN. 12:23:54 IN YOUR TESTIMONY YOU TALK ABOUT MEETING WITH THE COUNTERPARTS, 12:23:59 YOUR COUNTERPARTS IN THE JAPANESE GOVERNMENT. 12:24:01 SO HOW DO YOU -- HOW WOULD YOU ASSESS THEIR EFFECTIVENESS, 12:24:06 THEIR INDEPENDENCE, THEIR COMMITMENT TO STRONG OVERSIGHT. 12:24:12 THE ROAD TRANSPORT BUREAU AND THE JAPANESE MINISTRY OF LAND 12:24:17 INFRASTRUCTURE AND TRANSPORTATION IS A VERY 12:24:20 VIGOROUS AGENCY THAT HAS A VERY DIFFERENT APPROACH AND MANDATE 12:24:24 UNDER JAPANESE LAW. THEY ARE VERY COMMITTED TO 12:24:27 SAFETY. THEY DO HAVE A DIFFERENT 12:24:29 RELATIONSHIP WITH THE MANUFACTURERS, IT IS STAT TORELY 12:24:36 MORE COLLABORATIVE THAN HOW NHTSA'S IS IN THE UNITED STATES. 12:24:46 HOWEVER, THEY ARE GREAT PUBLIC SERVICE, GREAT ENGINEERS AND 12:24:50 THEY DO A SOLID JOB FOR THE JAPANESE PEOPLE IN TERMS OF 12:24:54 MAKING SURE THEY CREATE A SAFE ENVIRONMENT IN TERMS OF HANDLING 12:24:58 OF THEIR VEHICLES. BUT WE DO HAVE DIFFERENT 12:25:01 APPROACHES. BUT I HAVE EVERY CONFIDENCE THAT 12:25:02 OUR COUNTERPARTS ARE JUST AS INVOLVED AND JUST AS INTENT UPON 12:25:05 MAKING SURE THAT THE FLEET THAT TOYOTA PUTS ON THE ROAD IS SAFE. 12:25:09 THANK YOU. I DON'T HAVE ANY OTHER 12:25:10 QUESTIONS. THANK YOU. 12:25:17 MR. BURLY FOR QUESTIONS, PLEASE. THANK YOU, CHAIRMAN. 12:25:21 THANK YOU. IT'S BEEN A WHILE SINCE OUR 12:25:24 HEARING ON THIS TOPIC WHERE YOU TESTIFIED AND I WANT TO START 12:25:28 WITH A LITTLE HOUSE WORK. YES, SIR. 12:25:32 SINCE THAT LAST HEARING I'VE SENT YOU THREE REMEMBER LETTERS, 12:25:37 MARCH 1st, MAY 2nd AND MAY 14th REQUESTING INFORMATION ON 12:25:40 COMPLAINTS BY TOYOTA OWNERS WHO SAID THEY'D EXPERIENCED SUDDEN, 12:25:45 UNANTICIPATED ACCELERATION EVEN AFTER THEIR VEHICLES UNDERWENT 12:25:48 RECALL SERVICE TO MODIFY PEDALS AND REPLACE FLOOR MATS. 12:25:52 IN THOSE LETTERS I ALSO REQUESTED INFORMATION ABOUT THE 12:25:55 STEPS NHTSA WAS TAKING TO REVIEW TOYOTA ELECTRONICS AND ENSURE 12:26:02 EFFECTIVE REPAIRS IN ALL VEHICLES. 12:26:04 TO THIS DATE I HAVE YET TO RECEIVE A RESPONSE FROM YOU OR 12:26:07 YOUR DEPARTMENT. CAN YOU GIVE ME SOME INDICATION 12:26:09 AS TO WHEN I CAN EXPECT A RESPONSE TO THOSE INQUIRIES? 12:26:12 MONDAY OR TUESDAY. IF IT'S TUESDAY YOU'LL GET IT 12:26:15 VERY EARLY TUESDAY. MR. BRALYE, IT IS MY 12:26:21 RESPONSIBILITY TO MAKE SURE YOU, ANY MEMBER OF THE COMMITTEE OR 12:26:24 CONGRESS GETS A TIMELY RESPONSE. IT IS MY RESPONSIBILITY THAT IT 12:26:27 HAPPENS. I APOLOGIZE YOU HAVE NOT 12:26:29 RECEIVED THAT RESPONSE. I WILL MAKE SURE IT HAPPENS 12:26:31 IMMEDIATELY AND ON A FOREGOING BASIS THAT YOU GET A TIMELY 12:26:34 RESPONSE. THANK YOU. 12:26:35 I APPRECIATE THAT. DO YOU HAVE A SENSE AS YOU SIT 12:26:38 HERE TODAY HOW MANY REPORTS NHTSA HAS RECEIVED OF SUDDEN, 12:26:43 UNANTICIPATED ACCELERATION IN PREVIOUSLY-SERVICED TOYOTA 12:26:48 VEHICLES? I -- WE HAVE HAD A NUMBER OF 12:26:53 REPORTS, ESPECIALLY WITHIN, I GUESS WITHIN THE FEBRUARY/MARCH 12:26:57 TIME FRAME PERIOD AFTER REPAIRS WERE EXECUTED. 12:27:00 WE HAVE CONDUCTED NUMEROUS INTERVIEWS AND DONE FIELD 12:27:04 INVESTIGATIONS. I'LL DEFINITELY GET BACK TO YOU 12:27:05 ON THE RECORD WITH THE SPECIFIC NUMBER. 12:27:08 I DO KNOW FOR A FACT THAT THE NUMBER OF THOSE REMEDY REPAIRS 12:27:13 AND COMPLAINTS HAVE MARKEDLY DECREASED SINCE MARCH. 12:27:17 I KNOW THAT OUR STAFF HAS WORKED VERY CLOSELY WITH TOYOTA AND 12:27:21 INFORMED THEM OF OUR FINDINGS. THERE WERE SOME ISSUES WITH HOW 12:27:24 THE DEALERS WERE APPLYING REPAIRS AND I KNOW THAT TOYOTA 12:27:29 MADE UPON OUR REQUEST MADE SEVERAL MODIFICATIONS TO THE 12:27:32 INSTRUCTIONS TO THE DEALERS ON HOW THEY APPLY THE REMEDIES AND 12:27:36 WE HAVE SEEN A MARKET DECREASE IN THE ....TO MAKE SURE 12:27:42 THE REMEDY IS PROPERLY APPLIED AND ANY CONSUMER THAT IS STILL 12:27:46 HAVING ISSUES, THAT WE FOLLOW UP. 12:27:48 ARE THOSE COMPLAINTS ON PREVIOUSLY-SERVICED VEHICLES 12:27:53 BEING FORWARDED TO THE ENTITIES SUCH AS EXPONENT OR THE NASA 12:28:00 INVESTIGATORS WHO ARE LOOKING INTO THE POTENTIAL LINK BETWEEN 12:28:03 AN ELECTRONIC PROBLEM AND THE ISSUE OF SUDDEN ANTICIPATED 12:28:09 ACCELERATION? I CAN SPEAK TO EXPONENT 12:28:11 GETTING DIRECT ACCESS TO OUR WORK OR DATA UPON REQUEST. 12:28:14 I MEAN, THEIR POSITION IS ANY PRIVATE CITIZEN IN TERMS OF A 12:28:19 FULL REQUEST OR ANYTHING OF THAT NATURE WE ARE NOT COLLABORATING 12:28:21 WITH EXPONENT. NASA IS GETTING EVERYTHING THAT 12:28:25 WE HAVE IN REGARDS TO OUR WORK ON SUDDEN UNINTENDED EXCEL 12:28:29 RAILINGS, INCLUDING THOSE REMEDY REPAIR ISSUES AND IN ADDITION TO 12:28:32 ALL DOCUMENTS FROM TOYOTA. SO WE ARE -- NASA IS GETTING 12:28:36 THOSE DOCUMENTS. I DON'T KNOW IF EXPONENT HAS 12:28:38 MADE A REQUEST OF THAT. HAVE YOU BEEN PROVIDED WITH 12:28:41 COPIES OF THE MATERIALS THAT EXPONENT HAS SUBMITTED TO THE 12:28:45 COMMITTEE IN RESPONSE FOR REQUESTS FOR INFORMATION ABOUT 12:28:48 THEIR WORK PRODUCT IN CONNECTION WITH THIS INVESTIGATION? 12:28:51 I HAVE NOT, BUT I'VE BEEN MADE AWARE OF SOME OF THE 12:28:55 RESPONSES BY MY STAFF. WERE YOU AWARE THAT THE 12:28:58 COMMITTEE HAS BEEN PROVIDED WITH A REPORT FROM EXPONENT THAT IS 12:29:02 TITLED, EVALUATION OF GILBERT DEMONSTRATION? 12:29:05 YES, I'M AWARE OF IT, SIR. AND WE'VE ALSO BEEN PROVIDED 12:29:08 WITH A POWERPOINT PRESENTATION WITH A SIMILAR TITLE, EVALUATION 12:29:13 OF DR. GILBERT'S DEMONSTRATION? YES, SIR, I'M AWARE OF IT. 12:29:16 HAVE YOU SEEN ANY OTHER REPORTS IN EITHER A PRELIMINARY, 12:29:22 A DRAFT OR A FINAL FORM FROM EXPONENT DETAILING ITS WORK 12:29:28 ANALYZING THE POTENTIAL PROBLEM OF SUDDEN, UNANTICIPATED 12:29:33 ACCELERATION IN TOYOTA VEHICLES? NO, SIR, I HAVE NOT. 12:29:36 WERE YOU AWARE EXPONENT HAS WILLED APPROXIMATELY 11,000 12:29:41 HOURS OF WORK SINCE THE BEGINNING OF THIS WORK ON THIS 12:29:44 PARTICULAR INVESTIGATION? I WAS UNAWARE OF THAT BUT 12:29:47 THAT IS A SIGNIFICANT AMOUNT OF WORK. 12:29:49 AND BECAUSE IT IS A SIGNIFICANT AMOUNT OF WORK, DO YOU FIND6cv 12:29:53 AT ALL SURPRISING OR DISTURBING THAT THE DOCUMENTS WE HAVE 12:29:56 RECEIVED TODAY FROM EXPONENT ARE LIMITED SPECIFICALLY TO THE 12:30:00 TESTIMONY OF ONE WITNESS WHO TESTIFIED AT OUR PREVIOUS 12:30:04 HEARING ON FEBRUARY 23rd? THAT WOULD NOT BE NHTSA'S 12:30:09 APPROACH IF OUR WORK PLAN, WOULD BE INCREDIBLY DETAILED, EVERY 12:30:15 MINUTE OF WHAT WE DOMENT I WOULD IMAGINE THE COMMITTEE WOULD HAVE 12:30:18 THE SAME EXPECTATION OF EXPONE ENT. 12:30:20 THE FACT YOU DON'T HAVE IT, I IMAGINE IT BEING VERY TROUBLING 12:30:23 TO THE COMMITTEE. THANK YOU VERY MUCH. 12:30:24 I YIELD BACK. MR. WAXMAN FOR QUESTIONS 12:30:28 PLEASE, SIR. YES, MR. STRICKLAND, JUST 12:30:32 FOLLOWING UP ON THAT LINE OF QUESTIONING, DO YOU BELIEVE IT'S 12:30:35 POSSIBLE TO CONDUCT SOLID ENGINEERING WORK IF YOU DON'T 12:30:38 HAVE A WRITTEN PLAN FOR THE RESEARCH, YOU DON'T KEEP A 12:30:41 WRITTEN RECORD OF THE WORK, WHICH IS APPARENTLY THE 12:30:44 SITUATION WITH EXPONENT? IT WOULD BE MY EXPECTATION OF 12:30:51 NHTSA AND ENGINEERS THAT WE HAVE A PROPER FLOW PLAN AND ANALYSIS. 12:30:55 EVERYTHING SHOULD BE PROPERLY DOCUMENTED AND ALSO IN TERMS OF 12:30:58 OUR WORK WITH NASA, WE HAVE TO BE PREPARED FOR A PEER REVIEW TO 12:31:01 BE CONDUCTED BY OUR ) VOLPI CENR IN CAMBRIDGE, MASSACHUSETTS. 12:31:06 SO THAT WOULD BE AN INCREDIBLY DIFFERENT TACT, HOW WE WOULD 12:31:10 EXECUTE A RESEARCH PLAN. SO I WOULD SAY THAT THAT WOULD 12:31:13 NOT BE MY EXPECTATION IF I WAS DEALING WITH IT ON THE PRIVATE 12:31:17 SECTOR. WE'VE LEARNED THAT TOYOTA'S 12:31:20 DEFENSE COUNSEL CONTROLS EXPONENT'S WORK. 12:31:22 THEY REVIEW EVERYTHING THAT EXPONENT DOES AND THEY HAVE THE 12:31:26 RIGHT TO PREVENT EXPONENT FROM RELEASING UNFAVORABLE RESULTS. 12:31:30 DOES THIS CONCERN YOU, TOYOTA IS RELYING ON EXPONENT TO DO ITS 12:31:35 RESEARCH AND EXPONENT IS BEING DIRECTED BY TOYOTA'S DEFENSE 12:31:39 COUNSEL. IS THIS THE WAY YOU THINK AN 12:31:41 INVESTIGATION OUGHT TO BE HANDLED? 12:31:42 THERE'S TWO COMPONENTS, NOT TO SPEAK FOR TOYOTA, THEY CAN 12:31:46 CLEARLY SPEAK FOR THEMSELVES, BUT THERE IS, YOU KNOW, 12:31:51 PREPARATION FOR LITIGATION AND THEN THERE'S ALSO A SCIENTIFIC 12:31:55 INVESTIGATION INTO A CAUSE OF A PROBLEM. 12:31:57 AND THOSE COULD BE MUTUALLY EXCLUSIVE, PERHAPS EXPONENT MAY 12:32:01 BE DOING THAT ADDITIONAL WORK TO ..... 12:32:04 QUESTION, BUT FROM WHAT I HAVE UNDERSTOOD, ALL THE WORK HAS 12:32:09 BEEN IN PREPARATION FOR LITIGATION, I WOULD SAY AT THIS 12:32:18 POINT THEY HAVE NOT FULFILLED AS PART OF THE, I GUESS, THE 12:32:21 SOLUTION IN TERMS OF TRYING TO FIND THE ANSWER FROM WHAT YOU'VE 12:32:25 JUST DESCRIBED. A VEHICLE SOFTWARE TECHNOLOGY 12:32:29 THAT MANY AUTO SAFETY EXPERTS SAY WOULD ADDRESS THE SUDDEN 12:32:33 UNINTENDED ACCELERATION. WITH BRAKE OVERRIDE IF THE 12:32:36 DRIVER APPLIES BOTH THE ACCELERATOR AND BRAKE AT THE 12:32:39 SAME TIME, IN MOST SITUATIONS THE CAR WILL DISREGARD THE 12:32:43 ACCELERATOR AND APPLY THE BRAKE. I UNDERSTAND NHTSA IS EVALUATING 12:32:49 THE BRAKE OVERRIDE TECHNOLOGY AND CONSIDERING UPDATING ITS 12:32:52 STANDARDS TO REQUIRE THE TECHNOLOGY IN ALL CARS. 12:32:54 DO YOU CONSIDER BRAKE OVERRIDE TO BE A SAFETY FEATURE? 12:32:58 WE BELIEVE AT NHTSA THAT SAFETY OF THE BRAKE OVERRIDE HAS 12:33:02 HUGE IMPLICATIONS FOR SAFETY. IT IS SOMETHING THAT WE BELIEVE 12:33:05 HAS GREAT PROMISE. WE'RE DOING OUR RESEARCH AND WE 12:33:09 DO ANTICIPATE THAT IT COULD HAVE A GREAT VALUE TO IMPLEMENTATION 12:33:15 OF THE FLEET BUT WE HAVE TO DO OUR WORK PRELIMINARY. 12:33:18 BUT YES, IT'S A SAFETY FEATURE. WE'VE BEEN TOLD THAT NHTSA 12:33:26 SUGGESTED TO TOYOTA THAT TOYOTA RETROFIT SOME OF ITS MODELS WITH 12:33:30 THIS BRAKE OVERRIDE. TOYOTA ADVISED THE COMMITTEE IT 12:33:33 HAS DECIDED TO MAKE BRAKE OVERRIDE A STANDARD FEATURE IN 12:33:36 ALL CARS FOR THE 2011 MODEL YEAR FORWARD. 12:33:41 TOYOTA ALSO TOLD US IT WILL UPGRADE THE SOFTWARE FROM 12:33:44 EARLIER MODELS DURING SERVICE FOR OTHER RECALLS. 12:33:47 MR. STRICKLAND, AFTER 2011 WHEN TOYOTA IS DONE WITH ITS 12:33:51 RETROFITTING, WILL THERE BE TOYOTAS ON THE ROAD THAT WILL 12:33:54 NOT HAVE THE BRAKE OVERRIDE? I WOULD IMAGINE FROM YOUR 12:33:57 ANSWER, SIR, NO THERE WILL BE SOME VEHICLE THAT'S WILL NOT 12:34:00 HAVE BRAKE OVERRIDE. DO YOU SUPPORT MAKING BRAKE 12:34:04 OVERRIDE A MANDATORY FEATURE FOR ALL CARS? 12:34:09 WE'RE BEGINNING OUR REEF SEARCH TO JUSTIFY SUCH A MOVE. 12:34:12 BUT IN THE PRELIMINARY FASHION, THE ONE GOAL WE WANT TO HAVE IS 12:34:15 THIS. ANY DRIVER THAT DEPRESSES THE 12:34:17 BRAKE SHOULD BE ABLE TO STOP THE CAR. 12:34:19 AND THAT -- WITH THAT GOAL WE BELIEVE IT HAS GREAT PROMISE. 12:34:23 WELL, TOYOTA'S REACHED A CONCLUSION THAT THEY WANT TO 12:34:27 HAVE THIS BRAKE OVERRIDE. THEY THINK IT'S IMPORTANT S 12:34:29 THERE ANY REASON WHY IF THEY'VE DECIDED A BRAKE OVERRIDE IS 12:34:32 IMPORTANT FOR THE FUTURE CARS AND SOME OF THE EXISTING CARS 12:34:36 THAT THEY WOULDN'T WANT TO MAKE BRAKE OVERRIDE AVAILABLE IN ALL 12:34:39 CARS THAT ARE COMPATIBLE WITH THIS FEATURE? 12:34:42 I'LL ASK THEM THAT MYSELF, BUT CAN YOU IMAGINE ANY REASON THEY 12:34:45 WOULD NOT WANT TO DO THAT? FROM A CONSUMER STANDPOINT, I 12:34:48 WOULD IMAGINE THAT EVERY DRIVER OF A TOYOTA THAT MAY HAVE AN 12:34:51 ISSUE REGARDING SUDDEN UNINTENDED ACCELERATION WOULD 12:34:54 LIKE TO HAVE THIS FEATURE ON THEIR CAR. 12:34:57 SPEAKING, JUST SPEAKING AS A CONSUMER, TOYOTA'S DECISION 12:34:59 MAKING IN TERMS OF HOW THEY IMPLEMENT IT IS AN ONGOING 12:35:04 QUESTION. BUT TO ANSWER YOUR QUESTION, 12:35:05 SIR, I BELIEVE IT WILL BE A POSITIVE MOVE FOR SAFETY AND FOR 12:35:08 THEIR OWN DRIVING PUBLIC. I LOOK FORWARD TO HEARING MR. 12:35:13 LENTZ'S EXPLANATION FOR WHY IT WON'T BE AVAILABLE IN ALL 12:35:15 TOYOTAS. BECAUSE I DON'T SEE A REASON TO 12:35:17 MAKE IT ALL AVAILABLE. MAKE IT AVAILABLE IN ALL THE 12:35:20 TOYOTAS. BUT WE'LL GET HIS RESPONSE TO 12:35:24 THAT. THANK YOU MR. CHAIRMAN. 12:35:29 THANK YOU. THANK YOU, MR. STRICKLAND. 12:35:31 TOYOTA RELIES ON TWO PRIMARY JUSTIFICATIONS FOR ITS ASSERTION 12:35:35 THAT ELECTRONICS PLAYS NO ROLE IN SUDDEN UNINTENDED 12:35:39 ACCELERATION. WE'VE ALREADY DISCUSSED ONE OF 12:35:41 THE SHORTCOMINGS, ONE OF THE JUSTIFICATIONS, THE WORK, THE 12:35:45 ENGINEERING FIRM EXPONENT HAS DONE FOR TOYOTA AND THE PROBLEMS 12:35:48 WITH THAT. THE OTHER JUSTIFICATION TOYOTA 12:35:51 RELIES ON IS THE PREMARKET TESTING THAT TOYOTA'S OWN 12:35:55 ENGINEERS DO BEFORE MANUFACTURING VEHICLES FOR SALE 12:35:56 TO THE PUBLIC. OUR COMMITTEE STAFF CONDUCTED A 12:36:03 TRANSCRIBED INTERVIEW AND TWO ENGINEERS IN JAPAN AND ASKED 12:36:06 THEM MULTIPLE QUESTIONS ABOUT THE TESTING CALLS. 12:36:09 WE LEARNED THIS PREMARKET TESTING HAS SIGNIFICANT 12:36:13 LIMITATIONS. TOYOTA ONLY CONDUCTS THIS TEST 12:36:15 DURING THE DESIGN PHASE OF THE VEHICLES. 12:36:16 AS ONE OF THE TOYOTA ENGINEERS WE INTERVIEWED TOLD THE 12:36:23 COMMITTEE, QUOTE, ONCE, QUOTE, MASS PRODUCTION IS INITIATED 12:36:26 THEN THAT MEANS THE DESIGN IS COMPLETED SO WE DON'T CONDUCT 12:36:30 ANYTHING ADDITIONAL, END QUOTE. SO MR. SCHICKLAND, IS THIS 12:36:35 PREMARKET TESTING STRIKE YOU AS ADEQUATE TO IDENTIFY THE CAUSE 12:36:40 OF UNINTENDED ACCELERATION? THERE'S TWO COMPONENTS THAT 12:36:46 NHTSA IS CONCERNED ABOUT. IT'S COMPLIANCE. 12:36:48 BEFORE A VEHICLE IS PUT INTO THE STREAM OF COMMERCE IT HAS TO BE 12:36:51 COMPLIANT WITH ALL THE FEDERAL MOTOR VEHICLE SAFETY STANDARDS. 12:36:54 THAT'S ONE SET OF ISSUES THAT HAS TO BE TAKEN CARE OF. 12:36:57 THE SECOND PART AFTER THE VEHICLE'S ON THE ROAD, WE WORRY 12:37:01 ABOUT ANY DEFECTS EXPOST. I UNDERSTAND WHAT YOU'RE 12:37:06 SAYING BUT NOW WE'RE TALKING ABOUT BEFORE. 12:37:08 BUT THIS IS BEFORE MASS PRODUCTION. 12:37:10 LET ME GO ON. TOYOTA ENGINEERS ALSO TOLD US 12:37:15 THAT TOYOTA DOES NOT PERFORM THESE DESIGN PHASE TESTS ON A 12:37:19 LARGE NUMBER OF VEHICLES AND AS A RESULT IT SAMPLES MAY NOT BE 12:37:24 REPRESENTATIVE ENOUGH TO TEST FOR THE RISK OF A RARE EVENT 12:37:27 SUCH AS A SUDDEN, UNINTENDED ACCELERATION. 12:37:30 SOME OF THE TESTS TOYOTA RELIED ON FOR ITS CLAIM THAT THE 12:37:33 ELECTRONIC SYSTEM HAD UNDERGONE, QUOTE, EXTENSIVE TESTING, 12:37:37 UNQUOTE, INVOLVES SAMPLE SIZES OF JUST ONE OR TWO VEHICLES. 12:37:43 SO, MR. STRICKLAND, DOES TOYOTA'S APPROACH STRIKE YOU AS 12:37:47 ADEQUATE? THE APPROACH, EVERY 12:37:50 MANUFACTURE HAS A DIFFERENT APPROACH. 12:37:52 THE ONLY THING WE'RE CONCERN THE ABOUT IS WHAT HAPPENS ON THE 12:37:55 ROAD. NO, I UNDERSTAND, BUT YOU 12:37:57 SAID THERE WAS A PREMARKET PHASE THAT YOU REQUIRED. 12:38:00 IS THE TEST OF ONE OR TWO CARS IN THE DESIGN PHASE, IN YOUR 12:38:06 VIEW, SUFFICIENT? I WOULD HAVE TO COMPARE THAT 12:38:10 WITH OTHER MANUFACTURES' TESTING PROTOCOLS AND I DON'T HAVE THAT 12:38:14 OFFHAND. BUT I WILL DEFINITELY GET BACK 12:38:15 TO YOU ON THE RECORD ABOUT IT. SUDDEN UNINTENDED 12:38:20 ACCELERATION OCCURS RARELY AND INTERMITTENT WILL HE -- I ASKED 12:38:24 YOU THAT. ONE OR TWO VEHICLES. 12:38:27 FURTHER MORE WE LEARNED FAIL SAFE MECHANISMS IN TOYOTA 12:38:29 VEHICLES ARE DESIGNED TO DETECT SINGLE POINT, SINGLE EVENT 12:38:33 FAULTS. IN OTHER WORDS, FAULT THAT'S 12:38:35 OCCUR IN ISOLATION AND EFFECT ONLY ONE VEHICLE COMPONENT. 12:38:38 TOYOTA'S TESTING OF CRITICAL COMPONENTS OF THE ELECTRONIC 12:38:42 THROTTLE CONTROL SYSTEM REFLECTS THIS FOCUS IN THAT THEY DO NOT 12:38:45 TEST FOR MULTIPLE EVENT OR MULTIPLE COMPONENT FAULTS. 12:38:49 NUMEROUS ACADEMICS AND INDEPENDENT EXPERTS TOLD 12:38:52 COMMITTEE STAFF THAT RARE MULTIPLE EVENT FAULTS COULD PLAY 12:38:55 A ROLE IN SUDDEN UNINTENDED ACCELERATION. 12:38:58 IT SEEMS TO ME THAT TOYOTA SHOULD TRY TO IDENTIFY ALL 12:39:02 POTENTIAL FAULTS, NOT JUST THE MOST FREQUENT ONES, AND DEVELOP 12:39:05 TESTS TO PREVENT THEM. SO, MR. STRICKLAND, DO YOU AGREE 12:39:09 TOYOTA SHOULD TAKE A COMPREHENSIVE APPROACH TO TEST 12:39:12 FOR POTENTIAL CAUSES OF SUDDEN UNINTENDED ACCELERATION? 12:39:16 THEY SHOULD TAKE A COMPREHENSIVE APPROACH. 12:39:20 NHTSA'S WORK WITH NASA WILL BE A MULTIPLE FAULT CAUSATION STUDY 12:39:25 WHICH TAKES INTO ACCOUNT POSSIBLE INTERVENING EVENTS 12:39:27 WHICH COULD CAUSE THIS. THAT IS OUR STUDY. 12:39:29 THAT IS OUR APPROACH. AND WE WOULD HAVE THE 12:39:31 EXPECTATION FROM OUR FINDING THAT'S IF WE DO FIND VEHICLE 12:39:34 DEFECT THAT THAT WILL BE PART OF OUR VEE PONS TO TOYOTA IF THAT'S 12:39:38 THE CASE. BUT NHTSA'S APPROACH IS A MULTI 12:39:42 CAUSAL ANALYSIS IN HOW WE CAN REPLICATE THAT FAULT. 12:39:44 BASED ON THE DISCRETION OF TOYOTA'S PREMARKET TESTING 12:39:48 YOU'VE HEARD TODAY, DO YOU BELIEVE TOYOTA'S PREMARKET 12:39:50 TESTING PROVIDES A SUFFICIENT BASIS TO CONCLUDE THAT THERE ARE 12:39:54 NO POTENTIAL ELECTRONIC CAUSES OF SUDDEN UNINTENDED 12:39:58 ACCELERATION? I DON'T THINK YOU CAN USE A 12:40:00 PREMARKET ANALYSIS AS A DETERMINATIVE FACTOR THAT THERE 12:40:03 IS NO PROBLEM. I THINK YOU HAVE TO NOT ONLY DO 12:40:05 PREMARKET TESTING, BUT YOU HAVE TO DO LONG-TERM, YOU KNOW, I 12:40:11 GUESS LONG-TERM STUDIES OF HOW YOUR VEHICLE REACTS IN THE REAL 12:40:16 WORLD AS A NUMBER OF MANUFACTURERS DO. 12:40:19 SO I DON'T THINK THAT NHTSA WOULD SAY A PREMARKET TEST 12:40:23 VALIDATES A LOCK TERM ANSWER OF THE POSSIBILITY OF THERE BEING A 12:40:27 FAILURE. WELL I'M CONCERNED ABOUT THE 12:40:28 PREMARKET TESTING ITSELF, AND IT SEEMS TOYOTA'S IS NOT AN 12:40:33 ADEQUATE SUBS TUTD FOR THOROUGH TESTING NEEDED TO IDENTIFY 12:40:37 POTENTIAL DEFECTS AFTER MANUFACTURING IS COMPLETE, AND 12:40:39 IT'S TIME FOR TOYOTA TO STOP MAKING PUBLIC ASSURANCES ABOUT 12:40:42 THE INFALLIBILITY OF THEIR ELECTRONIC SYSTEMS WHEN THEY 12:40:46 DON'T HAVE COMPREHENSIVE TESTING TO BACK IT UP. 12:40:48 THANK YOU, MR. CHAIRMAN. THANK YOU. 12:40:56 M IN RESPONSE TO SOME OF THE 12:40:58 QUESTIONS FROM MR. BURGESS AND CHAIRMAN WAXMAN, A COUPLE 12:41:02 QUESTIONS. FIRST ONE IS A LETTER DATED 12:41:05 FEBRUARY 22nd, 2010, SENT TO SECRETARY LaHOOD BY MYSELF AND 12:41:11 MR. WAXMAN. AND ON PAGE FOUR, SUB PART B 12:41:16 ASKS THAT NHTSA REOPEN ITS INVESTIGATION OF P.E., THAT'S 12:41:26 PRELIMINARY EXAMINATION 0421 WHICH HAD 37 CONSUMER COMPLAINTS 12:41:30 ON SUDDEN, UNINTENDED ACCELERATIONS IN THE CAMRY, 12:41:37 2002, 2003 CAMRY, SOLARA AND LEXUS. 12:41:42 WE'VE YET TO HAVE A RESPONSE. ARE YOU GOING TO REOPEN THAT 12:41:44 INVESTIGATION AS REQUESTED? THE UNIVERSE OF TEST VEHICLES 12:41:50 ASSUMES THESE, ALL OF THESE PARTS THAT YOU ASKED FOR, SO IN 12:41:53 TERMS OF A DEFECT INVESTIGATION THAT'S PART OF THE NASA STUDY 12:41:58 THAT'S ONGOING, THAT WILL HAVE DONE IN THE -- BY THE END OF THE 12:42:02 SUMMER. SO TO ANSWER -- THE SHORT ANSWER 12:42:04 TO YOUR QUESTION IS WE ARE RE-EVALUATING ALL THIS WORK IN 12:42:07 LIGHT OF THE NASA STUDY. IN ADDITION TO, THAT'S GOING TO 12:42:10 BE INCLUDED IN THE NAS STUDY BUT WE'LL DEFINITELY GET BACK TO YOU 12:42:14 ON THE RECORD IN DIRECT RESPONSE TO SUB PART B. 12:42:16 WELL, IN LOOKING AT THAT AND IN RESPONSE TO MR. WAXMAN'S 12:42:20 QUESTIONS, YOU SAID THIS BRAKE OVERRIDE SYSTEM IS A HUGE SIFT 12:42:24 ISSUE. WHY WOULDN'T NHTSA REQUIRE 12:42:26 TOYOTA THEN TO HAVE THE BRAKE OVERRIDE SYSTEM IN 2002 AND 2003 12:42:32 LEXUS ES300s, THE TOYOTA CAMERA AND THE TOYOTA CAMERA SOLERA 12:42:39 FROM 2002, 2003 SINCE WE HAD 37 CONSUMER COMPLAINTS AND WE'VE 12:42:42 ASKED THAT IT BE REINVESTIGATED? WHY WOULDN'T YOU REQUIRE THE 12:42:45 BRAKE OVERRIDE SYSTEM BE PUT IN ALL VEHICLES OR TOYOTA MODELS OF 12:42:53 VEHICLES THAT HAD THIS SUDDEN UNEXPLAINED ACCELERATION. 12:42:56 IT IS STILL AN ONGOING INVESTIGATION, MR. STUPAK. 12:43:04 IF IT IS FOUND THAT THAT IS PART OF THAT, WE WOULD ASK FOR A 12:43:07 REMEDY AND THAT BRAKE OVERRIDE COULD BE A MANDATED PART OF THAT 12:43:10 REMEDY. BECAUSE IT IS AN INVESTIGATION, 12:43:12 IT IS ONGOING, WHICH IS INCLUSIVE AND THE KEY TO THE IN 12:43:15 AS THAT STUDY WE ARE NOT IN POSITION TO -- 12:43:17 WELL. -- MAKE THAT DEMAND AT THIS 12:43:19 TIME. IF TOYOTA IS PUTTING IT IN 12:43:22 SOME OF THE VEHICLES NOW, BE IN ALL VEHICLES IN 2011, THEN BY 12:43:26 PUTTING IT IN CERTAIN VEHICLES NOW, IS THAT ADMISSION, THEN, 12:43:30 THAT YOU HAVE A DEFECT IN THOSE MODELS AND THAT'S WHY YOU'VE GOT 12:43:35 TO PUT IN THIS BRAKE OVERRIDE? THAT ISN'T ADMISSION, YOU CAN 12:43:43 ASK MR. LENS THOSE QUESTIONS. BUT FROM NHTSA'S PERSPECTIVE, WE 12:43:48 CAN ONLY FORCE MANTDTORY RECALL IF THERE IS A DEFECT WE CAN 12:43:50 PROVE IN COURT AND WE HAVEN'T BEEN ABLE TO DO THAT YET. 12:43:53 BUT THE FACT THAT TOYOTA FEELS THEY NEED TO INSTALL THIS IN 12:43:56 SOME VEHICLES MAY BE INDICATIVE OF WHAT THEY FEEL WOULD BE A 12:43:59 PROPER SOLUTION UNTIL THEY CAN COME TO THEIR OWN ANSWERS. 12:44:02 ALL RIGHT. I GUESS I'LL SAVE THOSE 12:44:04 QUESTIONS FOR MR. LENTZ. LET ME ASK YOU THE OTHER 12:44:07 DOCUMENT I PUT BEFORE YOU. IT'S DATED 5/2/2007, IT'S A 12:44:15 MEMORANDUM FROM SCOTT YAWN, THIS IS ON THE SMITH VEHICLE THAT MR. 12:44:21 BURGESS HAD ASKED ABOUT. IN THE LAST PARAGRAPH, FIRST 12:44:25 LINE IT SAYS DISCOLORATION RUST AND SURFACE DAMAGE TO BRAKE 12:44:29 ROTORS IS VISIBLE THROUGH ALL FOUR WHEEL AP TOURS. 12:44:32 IF YOU GO ON THE NEXT PAGE, SECOND PARAGRAPH, LOWER PART OF 12:44:36 THAT PARAGRAPH, IT INDICATES A BRAKE COMPONENTS EXHIBIT WEAR 12:44:41 AND DAMAGE INCONSISTENT WITH NORMAL OPERATION AND 12:44:44 INCONSISTENT WITH THE INDICATED VEHICLE MILEAGE. 12:44:45 THEN THEY HAVE A NUMBER OF PHOTOGRAPHS WHICH SHOW THE 12:44:50 DAMAGE, SHOWING BRAKE TEMPERATURE SHOWS THE BRAKES 12:44:53 BEING APPLIED WHILE THE VEHICLE IS MOVING AT SPEED. 12:44:56 SO THE SMITH VEHICLE, MAYBE EVERY TIME YOU TURN THE KEY YOU 12:45:00 DON'T FIND A SUDDEN UNINTENDED ACCELERATION, OBVIOUSLY THERE IS 12:45:03 DAMAGE THERE OUTSIDE THE NORMAL WEAR AND TEAR ON A VEHICLE OF 12:45:06 THIS AGE S THAT CORRECT? YES, SIR, THAT'S CORRECT. 12:45:09 AND YOU'VE NEVER FOUND ANY VEHICLES THAT'S BEEN CONSIDERED 12:45:13 TO HAVE SUA, SUDDEN UNINTENDED ACCELERATION, YOU HAVEN'T BEEN 12:45:17 ABLE TO TURN THE KEYS, YOU SAID YOU HAD 20 MODELS AND YOU 12:45:20 HAVEN'T FOUND THIS SUDDEN UNINTENTED ACCELERATION? 12:45:25 WE HAVEN'T HAD AN EVENT WHERE THE ENGINEER TURNED ON THE CAR, 12:45:28 WAS ABLE TO REPLICATE THE FAULT BECAUSE OF SOMETHING OUTSIDE THE 12:45:34 PARAMETERS OF A FLOOR MAT ENTRAPMENT ISSUE. 12:45:36 AND WE DON'T KNOW WHEN THAT OCCURS, THAT'S WHY WE GIVE IT 12:45:39 THIS NAME, SUDDEN UNINTENDED ACCELERATION. 12:45:43 WE HAVE TO CATEGORIZE ALL THOSE EVENTS. 12:45:45 THERE COULD BE MULTIPLE CAUSES FOR THAT. 12:45:48 THAT'S THE REASON WE'RE HAVING OUR LONG-TERM INVESTIGATION FOR 12:45:50 THE NATIONAL ACADEMY OF SCIENCES AND HAVING NASA SPECIFICALLY 12:45:53 LOOK AT TOYOTA'S ELECTRONIC THROTTLE CONTROL SYSTEM FOR THE 12:45:58 STUDY THAT WE'RE HOPING TO FINISH AT THE END OF THE SUMMER. 12:46:01 MY TIME IS UP. MR. BURGESS FOR QUESTIONS? 12:46:03 THANK YOU, MR. CHAIRMAN. ON THE -- MR. STRICKLAND, ON THE 12:46:11 ORDER OF THE BRAKE OVERRIDE THAT NOW IS RECEIVING SO MUCH 12:46:13 ATTENTION, YOU MENTIONED, I THINK, THAT INSTALLING IT, THE 12:46:20 BRAKE OVERRIDE IN TOYOTAS WOULD BE A POSITIVE MOVE, IS THAT 12:46:24 CORRECTLY STATE YOUR FEELINGS? YES, SIR, I THINK THAT WOULD 12:46:27 BE A VERY POSITIVE MOVE. WHAT OTHER MANUFACTURES HAVE 12:46:31 INSTALLED A BRAKE OVERRIDE SYSTEM ON THEIR CARS? 12:46:35 THERE ARE SEVERAL MANUFACTURES THAT HAVE BRAKE 12:46:38 OVERRIDE SYSTEMS. ARE THERE SOME THAT DON'T. 12:46:40 THAT ARE SOME THAT DON'T. WHY IS THAT NOT A REQUIREMENT 12:46:44 IF YOU THINK IT WOULD BE A GOOD MOVE FOR TOYOTA WOULD IT BE A 12:46:47 GOOD MOVE FOR OTHER MANUFACTURERS? 12:46:48 WE HAVE BRAKE OVERRIDE HAS TREMENDOUS PROMISE WHICH IS THE 12:46:53 REASON WE'RE TAKING OUR PRELIMINARY RESEARCH FOR 12:46:54 POSSIBLE RULE MAKING IN FIRMS OF DEALING WITH THIS ISSUE, I GUESS 12:46:59 ACROSS THE REST OF THE FLEET, THAT'S GOING TO BE PART OF A 12:47:01 STUDY AND PART OF THE ONE OF THE ANSWERS WILL BE POSSIBLE 12:47:05 LONG-TERM SOLUTIONS, EITHER FROM THE NATIONAL ACADEMY OF 12:47:08 SCIENCES, WHICH MAY INCLUDE. ROUGH NUMBERS, WHAT 12:47:10 PERCENTAGE OF THE FLEET HAS THE BRAKE OVERRIDE RIGHT NOW? 12:47:12 THAT I'M NOT SUREMENT I'LL HAVE TO GET BACK TO YOU ON THE 12:47:15 RECORD FOR THAT. WHY ISN'T IT MORE WIDELY 12:47:18 USED? WHAT ARE THE BARRIERS TO THE 12:47:21 IMPLEMENTATION? THERE'S DIFFERENT SYSTEMS IN 12:47:23 TERMS OF HOW THE BRAKE AND THE ACCELERATOR WORK IN TERMS OF 12:47:26 THEIR SOFTWARE CONFIGURATION, THEIR MECHANICAL LINKAGES. 12:47:30 I'M SURE EVERY MANUFACTURER HAS DIFFERENT STRATEGIES IN 12:47:33 MANUFACTURING AND CONSTRUCTION WHICH MAY LEAD TO DIFFERENT 12:47:36 DECISIONS. IF YOU'RE THINKING ABOUT RULE 12:47:38 MAKING, THEN PRESUMABLY YOU'RE LOOKING AT CARS WITH ELECTRONIC 12:47:42 THROTTLE CONTROL WOULD HAVE A REQUIREMENT FOR A BRAKE OVERRIDE 12:47:45 SYSTEM. SO THAT IF THE BRAKE IS APPLIED, 12:47:48 THE THROTTLE, THE DEFAULT IS FOR THE THROTTLE TO STOP ACTION. 12:47:52 YES, SIR, WE'RE ABSOLUTELY LOOKING AT THAT. 12:47:54 SO IF THAT'S GOOD FOR TOYOTA, THEN IT'S GOOD FOR X-% OF THE 12:48:00 FLEET THAT DOES NOT HAVE THE BRAKE OVERRIDE SYSTEM. 12:48:04 THE SAFETY OF THE ENTIRE FLEET, NOT ONE MANUFACTURER. 12:48:06 WHEN WE HAD THE OTHER HEARING, AND I DON'T HAVE THE 12:48:09 INFORMATION IN FRONT OF ME TODAY, BUT IT WAS A LIST RATED, 12:48:12 A NUMERICAL LIST OF COMPLAINTS RECEIVED BY THE -- YOUR AGENCY 12:48:17 ABOUT CARS, AND TOYOTA SHOWED UP ON THE LIST, BUT THEY WERE, I 12:48:22 DON'T REMEMBER, 16, 17, 18 ON THE LIST. 12:48:24 THAT MEANS THERE WERE 16 OTHER CAR MANUFACTURERS WHERE THE CARS 12:48:27 HAD MORE COMPLAINTS. THAN TOYOTA. 12:48:31 AND YET HERE WE ARE INVOLVED IN A SERIES OF HEARINGS OVER 12:48:34 TOYOTA. HAVE YOU LOOKED AT THE CARS IN 12:48:36 THE COMPLAINTS THAT SCORED HIGHER THAN TOYOTA OR WORSE THAN 12:48:40 TOYOTA, IF YOU WILL, ON THAT LIST? 12:48:42 AND ARE WE -- ARE WE ACTIVELY PURSUING THE COMPLAINTS THAT 12:48:48 CAME INTO NHTSA FOR THOSE VEHICLES AS WELL? 12:48:53 NHTSA LOOKS ACROSS ALL MANUFACTURERS IN TERMS OF HOW 12:48:56 THE FOCUS ON TOYOTA, THERE WAS CLEARLY AN ANOMALY IN THE 12:49:00 ACCELERATION EVENTS DURING THE PERIOD THAT WE'RE TALKING ABOUT, 12:49:02 WHICH IS THE REASON WHY NHTSA HAS OPENED, YOU KNOW, UP UNTIL 12:49:05 THIS POINT WE HAD, I BELIEVE WE OPENED EIGHT INVESTIGATIONS INTO 12:49:10 THIS ISSUE PRIOR TO THE SANTY CRASH. 12:49:15 SO WE HAVE TAKEN A LOOK -- WE'VE ET TREATED TOYOTA AS WE WOULD 12:49:19 ANY MANUFACTURER. YES, THERE ARE OTHER 12:49:21 MANUFACTURERS WITH SIMILAR COMPLAINTS, MORE COMPLAINTS. 12:49:24 WE LOOK AT THEM JUST AS VIGOROUSLY AS WE DO TOYOTA. 12:49:28 IT'S JUST THAT IN TERMS OF THE ACTUAL PROFILE AND IN TERMS OF 12:49:32 TREND ANALYSIS, TOYOTA IN THIS AREA DID HAVE A HIGHER TENDENCY 12:49:36 TOWARD THE LATER YEARS OF THE CAMRY AFTER 2002. 12:49:39 AND WAS THAT ALL RELATED TO CONTROL? AT HAD THE ELECTRONIC0 12:49:43 YES, SIR. LET ME ASK YOU THIS. 12:49:45 LET'S TALK ABOUT NASA FOR A MINUTE BEFORE I RUN OUT OF TIME. 12:49:49 YOU REFERRED TO THE RESEARCH PLAN. 12:49:55 HAS -- HAVE YOU SUBMITTED A RESEARCH PLAN TO -- FOR NASA'S ? 12:50:00 WE WILL BE MEETING WITH NASA NEXT WEEK. 12:50:04 THEY HAVE REQUIRED A HUGE AMOUNT OF WORK FOR THE TOYOTA SOURCE 12:50:09 CODE. THERE WERE ISSUES TO OVERCOME. 12:50:11 THERE ARE A TREMENDOUS AMOUNT OF DOCUMENTS NASA HAD TO RECEIVE IN 12:50:15 ADDITION TO OUR AUTOMOTIVE EXPERTS WORKING WITH NASA. 12:50:19 SO OUR HOPE IS TO HAVE A TEST PLAN DONE FAIRLY SOON AND 12:50:23 HOPEFULLY ONCE WE GET THAT FINALIZED WE'LL SUBMIT IT TO THE 12:50:29 VOLPE CENTER FOR PEER REVIEW. WE HAVE NOT FINISHED YET. 12:50:32 SO YOU WILL SUBMIT THIS ANALYSIS ALSO FOR EVALUATION 12:50:36 FROM THE COMMITTEE WHEN YOU HAVE IT IN HAND? 12:50:39 ABSOLUTELY. THE TIMELINE ON THE NASA REVIEW 12:50:42 IS FOR IT TO BE COMPLETED BY THE END OF AUGUST? 12:50:45 THAT IS OUR HOPE. YOU DON'T HAVE A PLAN YET, 12:50:49 BUT WE'RE GOING TO GET ONE. IS THAT CORRECT? 12:50:52 YES. YOU WILL GET THAT. 12:50:54 WHAT IF WE GET TO THE END OF AUGUST AND WE HAVEN'T GOTTEN 12:50:59 THERE? WELL, WE HAVE A TIMELINE AND 12:51:01 A GOAL TO MAKE SURE WE HAVE RESULTS, BUT THE PRIMARY 12:51:05 OBJECTIVE IS TO MAKE SURE WE GET IT RIGHT. 12:51:09 THERE ARE ISSUES THAT MAY TAKE MORE TIME. 12:51:11 WE'LL UPDATE THE COMMITTEE ABOUT THE ISSUES AS THEY ARISE. 12:51:14 OUR HOPE IS TO BE DONE BY THE END OF THE SUMMER. 12:51:18 DO YOU HAVE ENOUGH FUNDING TO DO WHAT YOU NEED TO DO? 12:51:21 WE HAVE NOT DONE A BUDGET THIS YEAR AND WON'T DO APPROPRIATIONS 12:51:24 UNTIL LATE IN THE YEAR. CAN YOU PAY FOR THE THINGS YOU 12:51:26 NEED TO DO TO GET THIS INFORMATION? 12:51:28 AT THE TIME WE ARE PROPERLY RESOURCED NOW. 12:51:32 IF THERE ARE ANY RESOURCE ISSUES THAT CONFRONT US, WE'LL COME 12:51:35 BACK AND INFORM THE CONGRESS. LET THE RECORD SHOW NHTSA IS 12:51:39 AWASH IN CASH AND NEEDS NO MORE MONEY. 12:51:41 I THINK THAT'S WHAT HE SAID. [ LAUGHTER ] 12:51:45 THANK YOU FOR THE IMPLICATION. 12:51:48 ANY QUESTIONS? ADMINISTRATOR STRICKLAND, ONE 12:51:58 THING I'M CURIOUS ABOUT IS THE WORK THAT YOUR AGENCY IS DOING 12:52:02 LOOKING AT OTHER TYPES OF ANALYSIS THAT ARE BEING DONE BY 12:52:07 MANUFACTURERS IN OTHER PARTS OF THE WORLD LOOKING INTO THE 12:52:11 PROBLEM OF EVALUATING ELECTRONIC THROTTLE CONTROL SYSTEMS. 12:52:14 ARE YOU AWARE OF ANY OF THE WORK BEING DONE BY THE EUROPEAN 12:52:20 MANUFACTURERS IN TERMS OF EDUCATION AND TRAINING TO 12:52:23 ANALYZE POTENTIAL PROBLEMS WITH THOSE SYSTEMS? 12:52:26 I AM NOT, BUT I AM CERTAIN THAT MY STAFF IS. 12:52:30 MORE THAN HAPPY TO HAVE THEM COME AND SPEAK TO YOU AND YOUR 12:52:34 STAFF AND GET BACK TO YOU ON ANY QUESTIONS REGARDING THE 12:52:37 DIFFERENCES IN APPROACHES BETWEEN THE EUROPEAN UNION, THE 12:52:41 JAPANESE OR ANY OTHER MANUFACTURER. 12:52:44 I WOULD BE HAPPY TO DO THAT AND WOULD ENCURRENTLY YOUR STAFF 12:52:47 AS PART OF ITS WORK ON THE INVESTIGATION OF THE SPECIFIC 12:52:50 PROBLEM TO LOOK AT WHAT'S HAPPENING WITH THOSE OTHER 12:52:53 MANUFACTURERS, WHAT LESSONS THEY HAVE LEARNED AND WHAT THEIR 12:52:57 SAFETY RECORD IS ON THE ISSUE OF SUDDEN, UNINTENDED ACCELERATION 12:53:02 AFTER THE PROGRAMS HAVE BEEN IMPLEMENTED. 12:53:05 ABSOLUTELY. ONE OF THE OTHER QUESTIONS I 12:53:07 WANTED TO ASK YOU ABOUT IS THROUGHOUT THIS PROCESS, TOYOTA 12:53:14 HAS REPRESENTED TO THE COMMITTEE THAT IT RETAINED EXPONENT TO 12:53:20 CONDUCT AN INDEPENDENT INVESTIGATION OF THE UNDERLYING 12:53:22 CAUSES RELATED TO THESE PROBLEMS WITH SUDDEN UNINTENDED 12:53:27 ACCELERATION. YOU HAVE BEEN HERE WHEN WE'VE 12:53:29 TALKED ABOUT THAT. YES, SIR. 12:53:31 THEY HAVE MADE SIMILAR REPRESENTATIONS TO YOU. 12:53:33 THAT'S CORRECT. NOW THE COMPANY THEY RETAINED 12:53:38 TO DO THAT ANALYSIS, EXPONENT, DO YOU KNOW ABOUT THEM AND WHAT 12:53:42 THEY DO? I AM FAIRLY FAMILIAR WITH THE 12:53:44 COMPANY AND ITS PRIOR NAME AND THE ISSUES THAT IT'S WORKED ON 12:53:48 OVER THE YEARS. ITS PRIOR NAME BEING FAILURE 12:53:51 ANALYSIS ASSOCIATES? THAT'S CORRECT. 12:53:53 ARE YOU AWARE OF ANY INSTANCE WHERE FAILURE ANALYSIS 12:53:56 ASSOCIATES OR EXPONENT HAS BEEN RETAINED TO DO AP INDEPENDENT 12:54:04 ANALYSIS ON BEHALF OF A CONSUMER WHO WAS INJURED IN A DEFECTIVE 12:54:10 AUTOMOBILE? MY RECOLLECTION OF EXPONENT 12:54:12 OR FAILURE ANALYSIS PROBABLY GOES BACK TO 1993. 12:54:16 SO THAT'S THE WINDOW THAT I HAVE KNOWLEDGE OF. 12:54:21 I AM NOT AWARE OF THEM DOING WORK FOR A VICTIM OR CONSUMER OF 12:54:27 A PRODUCT. THAT'S ALL THE QUESTIONS I 12:54:28 HAVE. THAT CONCLUDES THE QUESTIONS 12:54:30 FOR THIS WITNESS. ADMINISTRATOR, THANK YOU. 12:54:32 FOR THE RECORD, I WOULD LIKE TO ENTER INTO THE RECORD THE TWO 12:54:36 DOCUMENTS I PRESENTED TO THE ADMINISTRATOR ON QUESTIONS OF 12:54:39 FEBRUARY 22, 2010, A LETTER FROM CHAIRMAN WAXMAN AND MYSELF TO 12:54:47 SECRETARY LA HOOD AND THE MEMORANDUM DATED MAY 7, 2007 12:54:51 CONCERNING THE SMITH VEHICLE. WITHOUT OBJECTION THEY WILL BE 12:54:55 ENTERED INTO THE RECORD. THANK YOU FOR BEING HERE. 12:54:57 THANK YOU VERY MUCH, MR. CHAIRMAN. 12:55:30 THANK YOU FOR BEING HERE. YOU'RE ON OUR SECOND PANEL. 12:55:34 WE HAVE JAMES E.LINTZ, PRESIDENT AND CHIEF OPERATING OFFICER OF 12:55:38 TOYOTA MOTOR SALES USA INCORPORATED. 12:55:41 IT IS THE POLICY OF THIS SUBCOMMITTEE TO TAKE ALL 12:55:43 TESTIMONY UNDER OATH. PLEASE BE ADVISED THAT YOU HAVE 12:55:45 THE RIGHT UNDER THE RULES OF THE HOUSE TO BE ADVISE BID COUNSEL 12:55:49 DURING YOUR TESTIMONY. DO YOU WISH TO BE REPRESENT BID 12:55:52 COUNSEL? YES. 12:55:54 TED HESTER IS BEHIND ME. YOU MAY CONSULT WITH HIM AT 12:55:59 THE APPROPRIATE TIME. THANK YOU. 12:56:02 PLEASE RAISE YOUR RIGHT HAND AND TAKE THE OATH. 12:56:06 DO YOU SWEAR OR AFFIRM THE TESTIMONY YOU'RE ABOUT TO GIVE 12:56:09 TO BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH IN THE 12:56:12 MATTER PENDING BEFORE THIS COMMITTEE? 12:56:17 I DO. 12:56:19 THE WITNESS IS NOW UNDER OATH. 12:56:21 IF YOU WOULD LIKE TO BEGIN WITH AN OPENING STATEMENT, FIVE 12:56:24 MINUTES. IF YOU HAVE A LONGER STATEMENT 12:56:26 WE'LL SUBMIT IT FOR THE RECORD. THANK YOU, CHAIRMAN STU PACK, 12:56:31 MEMBERS OF THE SUBCOMMITTEE. THANK YOU FOR INVIING ME HERE 12:56:35 TODAY. I AM THE PRESIDENT AND CHIEF 12:56:37 OPERATING OFFICER OF TOYOTA MOTOR SALES USA. 12:56:40 I'M HONORED TO RETURN HERE TO REPRESENT THE 30,000 AMERICANS 12:56:49 THOUSANDS MORE FROM THOSE WHO BRING GREAT DEDICATION AND 12:56:53 SPIRIT TO THEIR JOBS EACH AND EVERY DAY. 12:56:56 THREE WEEKS AGO I SAID TOYOTA IS COMMITTED TO STRENGTHENING FOCUS 12:57:00 ON SAFETY AND QUALITY ASSURANCE, IN COMMUNICATING EFFECTIVELY 12:57:03 WITH CUSTOMERS AND REGULATORS. IN SUBSEQUENT HEARINGS FOUR OF 12:57:08 MY SENIOR COLLEAGUES FROM THE U.S. AND JAPAN INCLUDING OUR 12:57:12 PRESIDENT AKIO TOYODA ALSO PREJUDICED TO IMPROVE 12:57:20 RESPONSIVENESS ON SAFETY ISSUES. THERE IS SUBSTANTIAL PROGRESS IN 12:57:23 MONITORING THE COMMITMENTS. WE ARE TAKING MAJOR STEPS TO 12:57:27 BECOME A MORE RESPONSIVE SAFETY FOCUSED ORGANIZATION, LISTENING 12:57:32 CLOSELY TO OUR CUSTOMERS RESPONDING MORE LIKELY TO THEIR 12:57:35 CONCERNS AND THOSE OF OUR REGULATORS AND TAKING ACTIONS TO 12:57:41 ENSURE THEY ARE AMONG THE INDUSTRY LEADERS IN SAFETY. 12:57:45 MR. TOYODA HAS MADE IMPROVING QUALITY ASSURANCE HIS PRIORITY. 12:57:49 OUR COMPANY IS MOBILIZED TO ENSURE THAT TOYOTA VEHICLES ARE 12:57:52 SAFE AND RELIABLE FOR OUR CUSTOMERS. 12:57:55 NOT ONLY WHEN THEY ARE FIRST SOLD AND LEASED BUT AS THEY ARE 12:57:57 ON THE ROAD FOR YEARS TO COME. UNDER HIS PERSONAL LEADERSHIP WE 12:58:01 HAVE UNDERTAKEN A TOP TO BOTTOM REVIEW OF OUR QUALITY ASSURANCE 12:58:05 PROCESS IN ALL ASPECTS OF GLOBAL OPERATIONS. 12:58:09 TOYOTA HAS APPOINTED A NEW CHIEF QUALITY OFFICER FOR NORTH 12:58:13 AMERICA. A U.S. EXECUTIVE WITH MORE THAN 12:58:15 THREE DECADES OF MANUFACTURING EXPERTISE TO ACT AS THE VOICE OF 12:58:20 THE CUSTOMER IN THIS REGION. NORTH AMERICA NOW HAS A GREATER 12:58:25 SAY ON RECALLS AND OTHER SAFETY ISSUES THAT AFFECT VEHICLES SOLD 12:58:29 IN THE UNITED STATES. IN FACT, THE CHIEF QUALITY 12:58:31 OFFICER HAS A DIRECT LINE TO MR. TOYODA WHEN IT COMES TO ENSURING 12:58:37 OUR CUSTOMERS' SAFETY. THESE CHANGES ARE HAVING A REAL 12:58:40 IMPACT AS REFLECTED IN THE SPEED AND DECISIVENESS OF OUR RESPONSE 12:58:45 LAST MONTH WHEN CONSUMER REPORTS IDENTIFIED A POTENTIAL SOFTWARE 12:58:49 ISSUE WITH THE VEHICLE STABILITY CONTROL IN THE 2010 LEXUS 12:58:55 GX-460. IN ADDITION, OUR SMART 12:58:58 EVALUATION PROCESS HAS SIGNIFICANTLY IMPROVED THE SPEED 12:59:01 OF OUR RESPONSE TO CUSTOMER RE

TOYOTA The House Energy and Commerce Committee, Oversight and Investigations Subcommittee hearing with David Strickland, the administrator of the National Highway Traffic Safety Administration and James Lentz, the President and CEO of Toyota Sales USA entitled "Update on Toyota and NHTSA's Response to the Problem of Sudden Unintended Acceleration" 12:00:00 12:07:46 RAYBURN OFFICE BUILDING, WITNESSES ARE DAVID STRICKLAND, 12:07:48 HEAD OF THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 12:07:53 AND JAMES LENTZ, PRESIDENT OF TOYOTA MOTOR SALES, USA. 12:07:58 THIS IS THE THIRD CONGRESSIONAL COMMITTEE. 12:08:09 SEVERAL ACADEMICS AND ENGINEERS HAVE DESCRIBED$Z 12:08:12 GILBERT'S WORK AS SENSIBLE, REASONABLE AND LEGITIMATE 12:08:16 STARTING POINT FOR AN INVESTIGATION INTO POTENTIAL 12:08:19 CAUSES OF SUDDEN UNINTENDED ACCELERATION. 12:08:23 THESE ACADEMICS AND ENGINEERS HAVE DISCUSSED WITH THE 12:08:26 COMMITTEE A VARIETY OF REAL WORLD EVENTS THAT COULD LEAD TO 12:08:30 THIS SORT OF RESIST TIVE -- TO THE SORT OF RESISTIVE DR. 12:08:34 GILBERT INDUCED IN HIS LAB. BUT TOYOTA'S RESPONSE TO DR. 12:08:39 GILBERT'S TESTIMONY WAS NOT TO INVESTIGATE HIS WORK SERIOUSLY, 12:08:42 INSTEAD THEY AGGRESSIVELY ATTACKED HIS CREDIBILITY AND 12:08:46 MOTIVES. IT'S MY UNDERSTANDING THAT NTSA 12:08:49 HAS TAKEN A DIFFERENT APPROACH WITH DR. GILBERT AND HAS INVITED 12:08:52 HIM TO ITS TESTING FACILITY SO HE CAN DISCUSS HIS WORK WITH 12:08:56 FEDERAL OFFICIALS INVESTIGATING SUDDEN, UNATTENDED ACCELERATION 12:09:00 IN TOYOTA VEHICLES AND CARS. IS THAT CORRECT? 12:09:02 YES, SIR, THAT IS CORRECT. ACTUALLY THE ENGINEERS AT NTSA 12:09:07 HAVE BEEN IN FAIRLY REGULAR CONVERSATION WITH DR. GILBERT TO 12:09:10 ARRANGE A TIME. AND IT'S MY UNDERSTANDING THAT 12:09:12 HE WILL BE VISITING OUR FACILITY IN EAST LIBERTY, OHIO, WITHIN 12:09:16 THE NEXT TWO WEEKS WHERE HE WILL BE GIVEN ACCESS TO OUR 12:09:20 LABORATORY AND OUR FACILITIES TO REPLICATE HIS WORK, TO DISCUSS 12:09:22 WITH OUR ENGINEERS AND ALSO WITH THE NASA FOLKS AS WELL. 12:09:27 HIS WORK IN ADDITION TO OTHER EXPERTS, IT'S VERY IMPORTANT FOR 12:09:31 US TO GET TO AN ANSWER AND WE'RE WELCOMING DR. GILBERT'S 12:09:38 PARTICIPATION. TOYOTA HAS DESCRIBED HIS WORK 12:09:41 AS PONY, PARLOR TRICK, THINGS LIKE THAT. 12:09:44 I SUSPECT YOU WOULD NOT INVITE HIM TO PARTICIPATE UNLESS YOU 12:09:48 FELT HE HAD SOMETHING TO OFFER TO THE DISCUSSION. 12:09:52 ABSOLUTELY NOT. WE BELIEVE HE'S REPLICATED A 12:09:54 SITUATION WHEREAS YOU DESCRIBED, MR. CHAIRMAN, THAT HE COULD HAVE 12:09:58 AN INCIDENT OF UNINTENDED ACCELERATION WHILE THIS BEING 12:10:04 PICKED UP IN THE ECM. THAT IS THE CORE OF EVERYONE'S 12:10:07 QUESTION AND WE HAVE TO TAKE HIS WORK VERY SERIOUSLY. 12:10:12 LAST TIME SECRETARY LaHOOD TESTIFIED, YOU WERE IN THE 12:10:16 PROCESS OF HIRING ENGINEERS. WE'RE IN THE PROCESS OF 12:10:21 RECRUITING SEVERALS. WE'RE BEGINNING THE INTERVIEW 12:10:24 PROCESS. WE HOPE TO GET A NUMBER OF FOLKS 12:10:27 ACROSS ELECTRICAL ENGINEERS, SOFTWARE ENGINEERING AND OTHERS 12:10:34 SOON. THE WHITE HOUSE IN THE LAST 12:10:35 WEEK OR TWO PUT OUT INITIATIVE WHERE YOU'RE TRYING TO SPEED UP, 12:10:40 IF YOU WILL, THE HIRING PROCESS FROM FIVE MONTHS TO ABOUT FIVE 12:10:43 WEEKS OR SIX WEEKS. HAVE YOU FOUND THAT HIRING 12:10:45 PROCESS TO BE A BURDEN IN TRYING TO OBTAIN EXPERTISE THAT YOU 12:10:50 NEED? WE'RE IN THE PROCESS OF 12:10:52 EXECUTING THROUGH THE QUICK-HIRE PROCESS IN THE ADMINISTRATION'S 12:10:56 REFORMS. WE DEFINITELY APPRECIATE THESE 12:10:57 NEW REFORMS AND WE'RE USING THEM TO ADVANTAGE OF HOW TO GET FOLKS 12:11:02 ON BOARD AS QUICKLY AS WE CAN. THE NORMAL PROCESS DOES HAVE -- 12:11:07 DOES REQUIRE SOME ENERGY AND THE REFORMS ARE VERY HELPFUL. 12:11:10 LET ME ASK YOU THIS. TOYOTA INDICATED IT WOULD RECALL 12:11:13 LEXUS LS VEHICLES. HAS THERE BEEN A RECALL ISSUED 12:11:17 YET? THEY SAID IT MIGHT BE AS EARLY 12:11:19 AS TOMORROW. MY UNDERSTANDING IS TOYOTA 12:11:21 WILL BE ISSUING THEIR REQUIRED DOCUMENTS TO NHTSA FRIDAY. 12:11:28 THEY HAVEN'T OFFICIALLY ANNOUNCED A RECALL, BUT IT'S MY 12:11:32 UNDERSTANDING THAT WILL HAPPEN TOMORROW. 12:11:34 THEY HAVE INFORMED NHTSA OF THE ISSUE THAT AROSE IN JAPAN AND 12:11:38 THEIR PLAN OF ACTION. I THINK THERE'S ABOUT 12:11:40 ANOTHER -- THIS IS THEIR TOP LINE OF THE LS LEXUS VEHICLES. 12:11:48 THOSE WERE ALSO SOLD HERE IN THE UNITED STATES CORRECT? 12:11:49 THAT IS CORRECT. HAVE YOU WORKED WITH NHTSA ON 12:11:56 THIS? TOYOTA, THEIR WORK WAS WITH 12:11:58 THE JAPANESE MINISTRY OF LAND INFRASTRUCTURE AND TRANSPORT. 12:12:02 AND THROUGH THEIR WORK FOUND THAT THERE WAS A DEFECT 12:12:05 RECORDING THE STEERING MECHANISM. 12:12:07 ONCE THAT WAS FOUND, THEY REPORTED TO NHTSA ABOUT THEIR 12:12:11 PLANS IN JAPAN AND PLANNED TO TAKE THE STEPS HERE IN THE 12:12:14 UNITED STATES AND WE'RE WORKING THROUGH THE ISSUES OF THE 12:12:17 REMEDY, WHICH I WOULD IMAGINE THAT WILL BE ANNOUNCED ON 12:12:20 FRIDAY. ALL RIGHT. 12:12:21 HAVE YOU GONE BACK THROUGH YOUR DATA BASE TO SEE IF THERE HAVE 12:12:24 BEEN STEERING PROBLEMS WITH THESE LEXUS LS -- 12:12:27 YES, MR. CHAIRMAN, WE HAVE. TO EXPLAIN A LITTLE MORE FULLY, 12:12:31 THE VEHICLE POPULATION INVOLVES THE LEXUS LS THROUGH THE END OF 12:12:37 MODEL YEAR 2009 THROUGH 2010 WHICH IS A VEHICLE POPULATION OF 12:12:40 3800 VEHICLES HERE IN THE UNITED STATES. 12:12:43 THE OFFICE OF DEFECTS INVESTIGATION HAS GONE -- IS 12:12:46 GOING THROUGH AND HAS GONE THROUGH OUR DATA BASE TO SEE IF 12:12:49 THERE WERE SIMILAR STEERING ISSUES. 12:12:51 WE HAVE NOT FOUND A COMPLAINT AS OF YET BUT WE'RE CONTINUING TO 12:12:54 SEARCH THE DATA BASE, EVEN ABSENT THAT WE APPRECIATE 12:12:58 TOYOTA'S BEING FORTHRIGHT AND TAKING ACTION INDEPENDENT OF OUR 12:13:01 OWN WORK. BUT WE ARE LOOKING TO MAKE SURE 12:13:03 THAT IF WE'VE HAD A SIMILAR ISSUE. 12:13:05 THERE WERE ONLY 12 OF THESE INCIDENTS IN JAPAN, IF I'M NOT 12:13:12 MISTAKEN. LAST HEARING IN FEBRUARY I 12:13:13 ASKED THE QUESTION OF ALL THE WITNESSES, MR. LENTZ IN 12:13:17 PARTICULAR INDICATED THAT THE MATS AND THE STICKY PEDAL 12:13:21 ACCOUNTED FOR ABOUT 16% OF THE UNINTENDED ACCELERATION. 12:13:26 HAS NHTSA THROUGH ITS INVESTIGATION FOUND THE CAUSE 12:13:31 FOR THE OTHER 84% OF UNINTENDED ACCELERATION WHICH REMAINS 12:13:36 UNEXPLAINED? WE'RE WORKING THROUGH SEVERAL 12:13:37 FIELD INVESTIGATIONS. WE HAVE 38 FIELD INVESTIGATIONS 12:13:41 ONGOING, LOOKING AT SPAN OF TOYOTA'S UNINTENDED ACCELERATION 12:13:44 ISSUES. WE ARE LEAVING NO THEORY 12:13:46 UNQUESTIONED OR UNTURNED. WE HAVE FOUND NO EVIDENCE OF 12:13:51 ADDITIONAL CAUSES OF THE DEFECT BUT THAT DOES NOT MEAN WE'VE 12:13:55 STOPPED LOOKING. WE'RE GOING TO TURN OVER EVERY 12:13:57 STONE, NOT ONLY OUR RESEARCH ONGOING WITH NASA AND THE 12:14:01 UPCOMING NATIONAL ACADEMY OF SCIENCES STOITD BUT OUR WORK IS 12:14:05 ALSO ONGOING AS ANY OTHER POSSIBLE ISSUES THAT COULD BE 12:14:09 CREATING THIS FAULT. SO WE'RE NO CLOSER TO 12:14:12 RESOLVING THE UNEXPLAINED 84% OF THE SUDDEN UNINTENDED 12:14:17 ACCELERATIONS. THAT IS CORRECT. 12:14:18 MR. BURGESS FOR QUESTIONS. THANK YOU, MR. CHAIRMAN. 12:14:27 MR. STRICKLAND, THE LAST HEARING WE HAD, SECRETARY LaHOOD SAID 12:14:32 THAT TOYOTA WAS -- HAD MADE SOME IMPROVEMENTS AND WAS GOING TO 12:14:36 BE -- THEN TOYOTA STATED THEY APPOINTED A CHIEF QUALITY 12:14:39 OFFICER, THEN WE HAD THE WHOLE ISSUE COME UP WITH THE 2010 12:14:44 LEXUS GS 460, SO DID THAT GIVE YOU AN ABILITY TO EVALUATE 12:14:49 TOYOTA'S RESPONSIVENESS TO THE PROBLEM WITH THE LEXUSES 12:14:56 COMPARED TO THEIR EARLIER RESPONSES? 12:14:58 YES, MR. BURGESS, IT HAS. AND I MADE A COMMENT AFTER THE 12:15:03 LEXUS GX 460 RECALL, THE CONSUMER REPORTS RECALLED WITH 12:15:06 THE ELECTRONIC STABILITY CONTROL ISSUE. 12:15:10 I HAVE FOUND SINCE I'VE TAKEN OFFICE IN JANUARY THAT TOYOTA 12:15:13 HAS BEEN MUCH MORE RESPONSIVE -- I DON'T MEAN TO INTERRUPT, 12:15:17 BUT DID THE QUALITY OFFICER MAKE A DIFFERENCE IN THAT 12:15:21 ENVIRONMENT? I WAS JUST INFORMED OF HIS 12:15:24 HIRING PROCESS, THE OVERALL RESULT IS WE HAVE SEEN BETTER 12:15:28 RESPONSES. TOYOTA'S WORKING THROUGH THE 12:15:29 ORGANIZATION ISSUES, BUT THESE PAST TWO RECALLS HAVE BEEN -- 12:15:34 I'VE BEEN VERY HAPPY WITH THE RESPONSIVENESS. 12:15:36 ONE OF THE ISSUES WITH PROFESSOR GILBERT'S TESTIMONY 12:15:39 LAST TIME, ONE OF THE QUESTIONS HE COULDN'T ANSWER WHEN I ASKED 12:15:44 WAS HOW -- TO GIVE US A REAL WORLD SCENARIO OF HOW THAT 12:15:49 SITUATION THAT HE DESCRIBED TO US WOULD EXIST. 12:15:52 WOULD IT BE CHAFING OF A CABLE HOLDER? 12:15:55 HOW WOULD YOU GET THE CORRECT AMOUNT OF RESISTANCE PLACED 12:15:57 ACROSS THE TWO WIRES, AND I NEVER REALLY GOT A 12:16:02 STRAIGHTFORWARD ANSWER TO THAT. IN WHAT YOU HAVE SEEN SO FAR, 12:16:05 HAS -- IS THAT A QUESTION THAT HAS BEEN SATISFILY ANSWERED IN 12:16:10 YOUR MIND? WHAT IS A REAL WORLD SITUATION 12:16:12 THAT WOULD HAVE TO OCCUR IN ORDER TORE MEET THE CONDITIONS 12:16:15 DR. GILBERT OUTLINED? I'LL DEFINITELY HAVE MY STAFF 12:16:19 AND ENGINEERS GET BACK TO YOU AFTER THE HEARING FOR I GUESS A 12:16:22 MORE TECHNICAL RESPONSE. WE'RE INVITING DR. GILBERT OUT 12:16:25 TO EAST LIBERTY FOR HIM TO REPLICATE HIS TEST. 12:16:27 WE HAVEN'T HAD AN ANSWER IN TERMS OF WHAT WOULD BE THE REAL 12:16:30 WORLD SITUATION TO CREATE THIS FAULT, BUT THAT IS SOMETHING WE 12:16:33 WANT TO TALK TO DR. GILBERT ABOUT. 12:16:40 WILL NHTSA EVALUATE THAT AS WELL? 12:16:43 CAN WE EXPECT TO SEE THE RESULTS OF THAT EVALUATION? 12:16:45 IT WILL ALL BE MADE PUBLIC AND PROVIDED TO THE COMMITTEE. 12:16:48 IN ADDITION TO MEETING WITH DR. GILGILBERT, WHO ELSE ARE YO 12:16:55 PLANNING TO MEET? CONTACTING EXPONENT AND 12:16:57 HAVING CONVERSATIONS WITH EVERY EXPERT WORKING IN THIS AREA. 12:17:00 BUT WE HAVE NOT HAD A CONVERSATION WITH EXPONENT AS OF 12:17:03 THIS POINT. NOW, YOUR CONTRACT WITH 12:17:12 NHTSA, HAVE ANY OF THE INDEPENDENT GROUPS ASKED TO MEET 12:17:18 WITH NHTSA? THERE HAVE BEEN NUMEROUS 12:17:23 CONVERSATIONS WITH EXPERTS AROUND THE COUNTRY. 12:17:25 I'LL BE HAPPY TO GET BACK ON THE RECORD TO TELL YOU WHICH 12:17:28 CONVERSATIONS HAVE HAPPENED. HAVE THEY REFUSED ANY 12:17:32 MEETINGS WITH ANY PARTICULAR GROUPS? 12:17:36 ABSOLUTELY NOT. AND YOU WILL MAKE THAT 12:17:38 INFORMATION AVAILABLE TO US? ABSOLUTELY, SIR. 12:17:42 NOW -- AND I DON'T HAVE THE DATA IN FRONT OF ME, BUT WE JUST 12:17:45 LOOKED AT THE TIMELINE FOR THE UNCOMMANDED ACCELERATION AND THE 12:17:51 THROTTLE CONTROL, THE TWO SEEM TO BE SUPERIMPOSED EVENTS THAT 12:17:54 OCCURRED ABOUT IN 2002. BUT TO THE BEST OF MY 12:18:02 UNDERSTANDING, THEY'RE REALLY, THROUGH ALL OF YOUR WORK, THERE 12:18:05 HAS NOT BEEN A PROBLEM IDENTIFIED WITH THE ELECTRONIC 12:18:08 THROTTLE CONTROL, OTHER THAN THE TESTIMONY FROM PROFESSOR 12:18:12 GILBERT. IS THAT THE ONLY AVENUE OF 12:18:13 PURSUIT THAT IS OCCURRING RIGHT NOW? 12:18:15 WE'RE LOOKING AT THE WHOLE -- THE ENTIRE TOYOTA FLEET IN 12:18:19 REGARD TO THIS ISSUE THROUGH OUR FIELD INVESTIGATIONS. 12:18:23 BUT IN TERMS OF HAVE WE FOUND A DEFECT INVOLVING THE THROTTLE 12:18:26 CONTROL SYSTEM FROM OUR PAST WORK, WE HAVE NOT AT THIS POINT. 12:18:29 BUT THE REASON WHY WE'RE INVESTING SO HEAVILY TO MAKE 12:18:33 SURE WE HAVE A FULL SCOPE OF EVERY ANSWER. 12:18:36 THAT WORK IS ONGOING, BUT OUR PAST WORK HASN'T SHOWN A DEFECT. 12:18:40 WAS MY E-MAIL CORRECT ABOUT THE RHONDA SMITH CAR, FIND THE 12:18:44 CAR AND TEAR IT APART AND FIND OUT THE PROBLEM, YOU DID LOOK 12:18:48 AND RIGHT NOW NOTHING REMARKABLE? 12:18:50 IS THAT -- IS THAT STILL THE ANSWER? 12:18:53 THAT IS THE STILL CORRECT. THE SMITH VEHICLE IS ONE OF OUR 12:18:59 TEST FLEET, OVER 20 VEHICLES TOTAL. 12:19:04 WE HAVE BEGUN WORK ON LOOKING AT HER VEHICLE IN ADDITION TO THEZG 12:19:10 OUR INVESTIGATION WITH NASA. AS I RECALL MISS SMITH'S 12:19:17 TESTIMONY, IT WAS VERY COMPELLING. 12:19:19 ONE OF HER COMPLAINTS WAS NO ONE AT TOYOTA WOULD LISTEN TO HER, 12:19:22 BUT IN FACT NO ONE AT f %WOULD LISTEN TO HER. 12:19:38 ARE YOU FEELING THE CONSUMER COMPLAINTS WERE ADEQUATELY 12:19:42 ADDRESSED OR SHOULD MORE CARE HAVE BEEN TAKEN AT THE TIME THE 12:19:44 COMPLAINT OCCURRED? I'M VERY CONFIDENT THAT THE 12:19:47 OFFICE OF DEFECT INVESTIGATIONS DID, WE EMPLOYED ONE OF OUR BEST 12:19:54 INVESTIGATORS. I'VE REVIEWED IT AND I BELIEVE 12:19:59 THAT EVERYTHING THAT SHOULD HAVE HAPPENED IN THAT INVESTIGATION 12:20:01 DID HAPPEN AND I'M VERY HAPPY WITH THE WORK. 12:20:02 AND THAT WAS THE WOULD, THAT OCCURRED RIGHT AFTER THE 12:20:05 INCIDENT. THAT IS CORRECT. 12:20:06 LET ME ASK YOU THIS. WHEN SECRETARY LaHOOD WAS HERE, 12:20:12 I HAD -- I HAVE A COPY OF THE PUBLICLY AVAILABLE REPORT ON A 12:20:22 LEXUS THAT WAS DAMAGED IN A CATASTROPHIC ACCIDENT IN SAN 12:20:28 DIEGO. THE MARK SAYLER ACCIDENT. 12:20:31 THERE'S A PORTION THAT'S REDACTED. 12:20:32 PARAGRAPH 5. I ASKED SECRETARY LaHOOD IF -- I 12:20:40 DON'T NEED A COPY IN MY HANDS BUT I WOULD LIKE TO LOOK AT THE 12:20:44 UNREDACTED REPORT. I'M WILLING TO COME DOWN TO THE 12:20:48 DEPARTMENT OF TRANSPORTATION OR YOUR AGENCY TO MAKE THAT REVIEW. 12:20:50 I UNDERSTAND THERE MAY BE SENSITIVE INFORMATION THAT THE 12:20:52 FAMILY WOULD NOT WANT OUT IN THE PUBLIC DOMAIN BUT I DO THINK 12:20:56 IT'S IMPORTANT THAT MEMBERS OF THIS COMMITTEE BE ABLE TO REVIEW 12:21:00 AN UNREDACTED REPORT OF THIS ACCIDENT. 12:21:03 WILL YOU HELP ME GET THAT INFORMATION THAT I'VE ASKED 12:21:07 SECRETARY LaHOOD TO PROVIDE TO ME AS A MEMBER OF THE COMMITTEE? 12:21:09 ABSOLUTELY. I WILL DEFINITELY REFER YOU TO 12:21:14 OUR CHIEF COUNSEL, KEVIN VINCENT. 12:21:19 ANYTHING AS LONG AS WE'RE DOING EVERYTHING WITHIN THE LAW IN THE 12:21:24 PROVISION OF INFORMATION TO THE CONGRESS I WILL HELP YOU. 12:21:28 I REMIND YOU WE HAVE SUBPOENA P 12:21:33 POWER, YES, SIR. MISS CHRISTIAN FOR QUESTIONS, 12:21:39 PLEASE. FYI IT'S, MR. CHAIRMAN. 12:21:42 MR. STRICKLAND, IN YOUR TESTIMONY, WE'VE HEARD IT FROM 12:21:47 SEVERAL MEMBERS THAT TOYOTA PAID $16,375,000 IN CIVIL PENALTIES. 12:21:57 THEY SAY THAT'S THE MAXIMUM PENALTY UNDER LAW. 12:21:59 DO YOU THINK THAT'S AN ADEQUATE CAP? 12:22:01 NO, MA'AM, I BELIEVE THAT THE SIZE OF THE REGULATED 12:22:16 M MANUFACTURES, I THINK A $16 12:22:19 MILLION FINE MAY NOT NECESSARILY GIVE THE CORRECT DETERRENT 12:22:22 EFFECT. I'VE TESTIFIED SEVERAL TIMES 12:22:24 THAT I BELIEVE THE CAP SHOULD BE SIGNIFICANTLY RAISED. 12:22:26 I KNOW IN THE MOTOR VEHICLE SAFETY ACT OF 2010 THE COMMITTEE 12:22:32 THOUGHT TO REMOVE THE CAP AND ALLOWED NHTSA THE DISCRETION TO 12:22:38 PROPERLY SIZE A PENALTY. I BELIEVE THAT'S THE CORRECT 12:22:42 APPROACH. THANK YOU. 12:22:43 YOU ALSO SAY IN YOUR TESTIMONY THAT YOU HAVEN'T F %a BASIS 12:22:47 FOR OPENING UP ANY NEW DEFECT INVESTIGATIONS ON UNINTENDED 12:22:54 ACCELERATION. WHAT IS A THRESHOLD? 12:22:59 WHAT WOULD TRIGGER A REOPENING OF THE INVESTIGATION? 12:23:01 WELL, THE TWO INVESTIGATIONS ARE ONGOING IN REGARDS TO TIME 12:23:05 LIMITS. SO WHAT WE'RE LOOKING FOR IS ANY 12:23:07 DOCK THE OR INDICATION THAT TOYOTA KNEW OF A DEFECT THAT 12:23:14 POSED AN UNREASONABLE EFFECT TO SAFETY. 12:23:16 IF THEY DID NOT INFORM NHTSA WITHIN FIVE DAYS THEY ARE IN 12:23:21 VIOLATION OF THE SAFETY ACT. WE ARE REVIEWING SEVERAL HUNDRED 12:23:24 THOUSAND DOCUMENTS IN THAT REGARD. 12:23:25 WHEN WE HAVE COMPLETED OUR REVIEW, IF WE HAVE MADE A 12:23:29 FINDING THAT THERE MAY BE AN ISSUE REGARDING A VIOLATION OF 12:23:33 THE TIMELINESS MANDATES OF THE ACT, WE WILL TAKE ACTION ONCE 12:23:37 AGAIN. BUT THAT IS -- WE HAVE MADE NO 12:23:39 CONCLUSIONS AS OF YET. THE WORK IS ONGOING. 12:23:41 THANK YOU. JUST ONE OTHER QUESTION. 12:23:45 AS I RECALL IN THE LAST HEARING, A LOT OF THE DECISIONS WERE 12:23:48 BEING MADE IN JAPAN AT TOYOTA IN JAPAN. 12:23:54 IN YOUR TESTIMONY YOU TALK ABOUT MEETING WITH THE COUNTERPARTS, 12:23:59 YOUR COUNTERPARTS IN THE JAPANESE GOVERNMENT. 12:24:01 SO HOW DO YOU -- HOW WOULD YOU ASSESS THEIR EFFECTIVENESS, 12:24:06 THEIR INDEPENDENCE, THEIR COMMITMENT TO STRONG OVERSIGHT. 12:24:12 THE ROAD TRANSPORT BUREAU AND THE JAPANESE MINISTRY OF LAND 12:24:17 INFRASTRUCTURE AND TRANSPORTATION IS A VERY 12:24:20 VIGOROUS AGENCY THAT HAS A VERY DIFFERENT APPROACH AND MANDATE 12:24:24 UNDER JAPANESE LAW. THEY ARE VERY COMMITTED TO 12:24:27 SAFETY. THEY DO HAVE A DIFFERENT 12:24:29 RELATIONSHIP WITH THE MANUFACTURERS, IT IS STAT TORELY 12:24:36 MORE COLLABORATIVE THAN HOW NHTSA'S IS IN THE UNITED STATES. 12:24:46 HOWEVER, THEY ARE GREAT PUBLIC SERVICE, GREAT ENGINEERS AND 12:24:50 THEY DO A SOLID JOB FOR THE JAPANESE PEOPLE IN TERMS OF 12:24:54 MAKING SURE THEY CREATE A SAFE ENVIRONMENT IN TERMS OF HANDLING 12:24:58 OF THEIR VEHICLES. BUT WE DO HAVE DIFFERENT 12:25:01 APPROACHES. BUT I HAVE EVERY CONFIDENCE THAT 12:25:02 OUR COUNTERPARTS ARE JUST AS INVOLVED AND JUST AS INTENT UPON 12:25:05 MAKING SURE THAT THE FLEET THAT TOYOTA PUTS ON THE ROAD IS SAFE. 12:25:09 THANK YOU. I DON'T HAVE ANY OTHER 12:25:10 QUESTIONS. THANK YOU. 12:25:17 MR. BURLY FOR QUESTIONS, PLEASE. THANK YOU, CHAIRMAN. 12:25:21 THANK YOU. IT'S BEEN A WHILE SINCE OUR 12:25:24 HEARING ON THIS TOPIC WHERE YOU TESTIFIED AND I WANT TO START 12:25:28 WITH A LITTLE HOUSE WORK. YES, SIR. 12:25:32 SINCE THAT LAST HEARING I'VE SENT YOU THREE REMEMBER LETTERS, 12:25:37 MARCH 1st, MAY 2nd AND MAY 14th REQUESTING INFORMATION ON 12:25:40 COMPLAINTS BY TOYOTA OWNERS WHO SAID THEY'D EXPERIENCED SUDDEN, 12:25:45 UNANTICIPATED ACCELERATION EVEN AFTER THEIR VEHICLES UNDERWENT 12:25:48 RECALL SERVICE TO MODIFY PEDALS AND REPLACE FLOOR MATS. 12:25:52 IN THOSE LETTERS I ALSO REQUESTED INFORMATION ABOUT THE 12:25:55 STEPS NHTSA WAS TAKING TO REVIEW TOYOTA ELECTRONICS AND ENSURE 12:26:02 EFFECTIVE REPAIRS IN ALL VEHICLES. 12:26:04 TO THIS DATE I HAVE YET TO RECEIVE A RESPONSE FROM YOU OR 12:26:07 YOUR DEPARTMENT. CAN YOU GIVE ME SOME INDICATION 12:26:09 AS TO WHEN I CAN EXPECT A RESPONSE TO THOSE INQUIRIES? 12:26:12 MONDAY OR TUESDAY. IF IT'S TUESDAY YOU'LL GET IT 12:26:15 VERY EARLY TUESDAY. MR. BRALYE, IT IS MY 12:26:21 RESPONSIBILITY TO MAKE SURE YOU, ANY MEMBER OF THE COMMITTEE OR 12:26:24 CONGRESS GETS A TIMELY RESPONSE. IT IS MY RESPONSIBILITY THAT IT 12:26:27 HAPPENS. I APOLOGIZE YOU HAVE NOT 12:26:29 RECEIVED THAT RESPONSE. I WILL MAKE SURE IT HAPPENS 12:26:31 IMMEDIATELY AND ON A FOREGOING BASIS THAT YOU GET A TIMELY 12:26:34 RESPONSE. THANK YOU. 12:26:35 I APPRECIATE THAT. DO YOU HAVE A SENSE AS YOU SIT 12:26:38 HERE TODAY HOW MANY REPORTS NHTSA HAS RECEIVED OF SUDDEN, 12:26:43 UNANTICIPATED ACCELERATION IN PREVIOUSLY-SERVICED TOYOTA 12:26:48 VEHICLES? I -- WE HAVE HAD A NUMBER OF 12:26:53 REPORTS, ESPECIALLY WITHIN, I GUESS WITHIN THE FEBRUARY/MARCH 12:26:57 TIME FRAME PERIOD AFTER REPAIRS WERE EXECUTED. 12:27:00 WE HAVE CONDUCTED NUMEROUS INTERVIEWS AND DONE FIELD 12:27:04 INVESTIGATIONS. I'LL DEFINITELY GET BACK TO YOU 12:27:05 ON THE RECORD WITH THE SPECIFIC NUMBER. 12:27:08 I DO KNOW FOR A FACT THAT THE NUMBER OF THOSE REMEDY REPAIRS 12:27:13 AND COMPLAINTS HAVE MARKEDLY DECREASED SINCE MARCH. 12:27:17 I KNOW THAT OUR STAFF HAS WORKED VERY CLOSELY WITH TOYOTA AND 12:27:21 INFORMED THEM OF OUR FINDINGS. THERE WERE SOME ISSUES WITH HOW 12:27:24 THE DEALERS WERE APPLYING REPAIRS AND I KNOW THAT TOYOTA 12:27:29 MADE UPON OUR REQUEST MADE SEVERAL MODIFICATIONS TO THE 12:27:32 INSTRUCTIONS TO THE DEALERS ON HOW THEY APPLY THE REMEDIES AND 12:27:36 WE HAVE SEEN A MARKET DECREASE IN THE ....TO MAKE SURE 12:27:42 THE REMEDY IS PROPERLY APPLIED AND ANY CONSUMER THAT IS STILL 12:27:46 HAVING ISSUES, THAT WE FOLLOW UP. 12:27:48 ARE THOSE COMPLAINTS ON PREVIOUSLY-SERVICED VEHICLES 12:27:53 BEING FORWARDED TO THE ENTITIES SUCH AS EXPONENT OR THE NASA 12:28:00 INVESTIGATORS WHO ARE LOOKING INTO THE POTENTIAL LINK BETWEEN 12:28:03 AN ELECTRONIC PROBLEM AND THE ISSUE OF SUDDEN ANTICIPATED 12:28:09 ACCELERATION? I CAN SPEAK TO EXPONENT 12:28:11 GETTING DIRECT ACCESS TO OUR WORK OR DATA UPON REQUEST. 12:28:14 I MEAN, THEIR POSITION IS ANY PRIVATE CITIZEN IN TERMS OF A 12:28:19 FULL REQUEST OR ANYTHING OF THAT NATURE WE ARE NOT COLLABORATING 12:28:21 WITH EXPONENT. NASA IS GETTING EVERYTHING THAT 12:28:25 WE HAVE IN REGARDS TO OUR WORK ON SUDDEN UNINTENDED EXCEL 12:28:29 RAILINGS, INCLUDING THOSE REMEDY REPAIR ISSUES AND IN ADDITION TO 12:28:32 ALL DOCUMENTS FROM TOYOTA. SO WE ARE -- NASA IS GETTING 12:28:36 THOSE DOCUMENTS. I DON'T KNOW IF EXPONENT HAS 12:28:38 MADE A REQUEST OF THAT. HAVE YOU BEEN PROVIDED WITH 12:28:41 COPIES OF THE MATERIALS THAT EXPONENT HAS SUBMITTED TO THE 12:28:45 COMMITTEE IN RESPONSE FOR REQUESTS FOR INFORMATION ABOUT 12:28:48 THEIR WORK PRODUCT IN CONNECTION WITH THIS INVESTIGATION? 12:28:51 I HAVE NOT, BUT I'VE BEEN MADE AWARE OF SOME OF THE 12:28:55 RESPONSES BY MY STAFF. WERE YOU AWARE THAT THE 12:28:58 COMMITTEE HAS BEEN PROVIDED WITH A REPORT FROM EXPONENT THAT IS 12:29:02 TITLED, EVALUATION OF GILBERT DEMONSTRATION? 12:29:05 YES, I'M AWARE OF IT, SIR. AND WE'VE ALSO BEEN PROVIDED 12:29:08 WITH A POWERPOINT PRESENTATION WITH A SIMILAR TITLE, EVALUATION 12:29:13 OF DR. GILBERT'S DEMONSTRATION? YES, SIR, I'M AWARE OF IT. 12:29:16 HAVE YOU SEEN ANY OTHER REPORTS IN EITHER A PRELIMINARY, 12:29:22 A DRAFT OR A FINAL FORM FROM EXPONENT DETAILING ITS WORK 12:29:28 ANALYZING THE POTENTIAL PROBLEM OF SUDDEN, UNANTICIPATED 12:29:33 ACCELERATION IN TOYOTA VEHICLES? NO, SIR, I HAVE NOT. 12:29:36 WERE YOU AWARE EXPONENT HAS WILLED APPROXIMATELY 11,000 12:29:41 HOURS OF WORK SINCE THE BEGINNING OF THIS WORK ON THIS 12:29:44 PARTICULAR INVESTIGATION? I WAS UNAWARE OF THAT BUT 12:29:47 THAT IS A SIGNIFICANT AMOUNT OF WORK. 12:29:49 AND BECAUSE IT IS A SIGNIFICANT AMOUNT OF WORK, DO YOU FIND6cv 12:29:53 AT ALL SURPRISING OR DISTURBING THAT THE DOCUMENTS WE HAVE 12:29:56 RECEIVED TODAY FROM EXPONENT ARE LIMITED SPECIFICALLY TO THE 12:30:00 TESTIMONY OF ONE WITNESS WHO TESTIFIED AT OUR PREVIOUS 12:30:04 HEARING ON FEBRUARY 23rd? THAT WOULD NOT BE NHTSA'S 12:30:09 APPROACH IF OUR WORK PLAN, WOULD BE INCREDIBLY DETAILED, EVERY 12:30:15 MINUTE OF WHAT WE DOMENT I WOULD IMAGINE THE COMMITTEE WOULD HAVE 12:30:18 THE SAME EXPECTATION OF EXPONE ENT. 12:30:20 THE FACT YOU DON'T HAVE IT, I IMAGINE IT BEING VERY TROUBLING 12:30:23 TO THE COMMITTEE. THANK YOU VERY MUCH. 12:30:24 I YIELD BACK. MR. WAXMAN FOR QUESTIONS 12:30:28 PLEASE, SIR. YES, MR. STRICKLAND, JUST 12:30:32 FOLLOWING UP ON THAT LINE OF QUESTIONING, DO YOU BELIEVE IT'S 12:30:35 POSSIBLE TO CONDUCT SOLID ENGINEERING WORK IF YOU DON'T 12:30:38 HAVE A WRITTEN PLAN FOR THE RESEARCH, YOU DON'T KEEP A 12:30:41 WRITTEN RECORD OF THE WORK, WHICH IS APPARENTLY THE 12:30:44 SITUATION WITH EXPONENT? IT WOULD BE MY EXPECTATION OF 12:30:51 NHTSA AND ENGINEERS THAT WE HAVE A PROPER FLOW PLAN AND ANALYSIS. 12:30:55 EVERYTHING SHOULD BE PROPERLY DOCUMENTED AND ALSO IN TERMS OF 12:30:58 OUR WORK WITH NASA, WE HAVE TO BE PREPARED FOR A PEER REVIEW TO 12:31:01 BE CONDUCTED BY OUR ) VOLPI CENR IN CAMBRIDGE, MASSACHUSETTS. 12:31:06 SO THAT WOULD BE AN INCREDIBLY DIFFERENT TACT, HOW WE WOULD 12:31:10 EXECUTE A RESEARCH PLAN. SO I WOULD SAY THAT THAT WOULD 12:31:13 NOT BE MY EXPECTATION IF I WAS DEALING WITH IT ON THE PRIVATE 12:31:17 SECTOR. WE'VE LEARNED THAT TOYOTA'S 12:31:20 DEFENSE COUNSEL CONTROLS EXPONENT'S WORK. 12:31:22 THEY REVIEW EVERYTHING THAT EXPONENT DOES AND THEY HAVE THE 12:31:26 RIGHT TO PREVENT EXPONENT FROM RELEASING UNFAVORABLE RESULTS. 12:31:30 DOES THIS CONCERN YOU, TOYOTA IS RELYING ON EXPONENT TO DO ITS 12:31:35 RESEARCH AND EXPONENT IS BEING DIRECTED BY TOYOTA'S DEFENSE 12:31:39 COUNSEL. IS THIS THE WAY YOU THINK AN 12:31:41 INVESTIGATION OUGHT TO BE HANDLED? 12:31:42 THERE'S TWO COMPONENTS, NOT TO SPEAK FOR TOYOTA, THEY CAN 12:31:46 CLEARLY SPEAK FOR THEMSELVES, BUT THERE IS, YOU KNOW, 12:31:51 PREPARATION FOR LITIGATION AND THEN THERE'S ALSO A SCIENTIFIC 12:31:55 INVESTIGATION INTO A CAUSE OF A PROBLEM. 12:31:57 AND THOSE COULD BE MUTUALLY EXCLUSIVE, PERHAPS EXPONENT MAY 12:32:01 BE DOING THAT ADDITIONAL WORK TO ..... 12:32:04 QUESTION, BUT FROM WHAT I HAVE UNDERSTOOD, ALL THE WORK HAS 12:32:09 BEEN IN PREPARATION FOR LITIGATION, I WOULD SAY AT THIS 12:32:18 POINT THEY HAVE NOT FULFILLED AS PART OF THE, I GUESS, THE 12:32:21 SOLUTION IN TERMS OF TRYING TO FIND THE ANSWER FROM WHAT YOU'VE 12:32:25 JUST DESCRIBED. A VEHICLE SOFTWARE TECHNOLOGY 12:32:29 THAT MANY AUTO SAFETY EXPERTS SAY WOULD ADDRESS THE SUDDEN 12:32:33 UNINTENDED ACCELERATION. WITH BRAKE OVERRIDE IF THE 12:32:36 DRIVER APPLIES BOTH THE ACCELERATOR AND BRAKE AT THE 12:32:39 SAME TIME, IN MOST SITUATIONS THE CAR WILL DISREGARD THE 12:32:43 ACCELERATOR AND APPLY THE BRAKE. I UNDERSTAND NHTSA IS EVALUATING 12:32:49 THE BRAKE OVERRIDE TECHNOLOGY AND CONSIDERING UPDATING ITS 12:32:52 STANDARDS TO REQUIRE THE TECHNOLOGY IN ALL CARS. 12:32:54 DO YOU CONSIDER BRAKE OVERRIDE TO BE A SAFETY FEATURE? 12:32:58 WE BELIEVE AT NHTSA THAT SAFETY OF THE BRAKE OVERRIDE HAS 12:33:02 HUGE IMPLICATIONS FOR SAFETY. IT IS SOMETHING THAT WE BELIEVE 12:33:05 HAS GREAT PROMISE. WE'RE DOING OUR RESEARCH AND WE 12:33:09 DO ANTICIPATE THAT IT COULD HAVE A GREAT VALUE TO IMPLEMENTATION 12:33:15 OF THE FLEET BUT WE HAVE TO DO OUR WORK PRELIMINARY. 12:33:18 BUT YES, IT'S A SAFETY FEATURE. WE'VE BEEN TOLD THAT NHTSA 12:33:26 SUGGESTED TO TOYOTA THAT TOYOTA RETROFIT SOME OF ITS MODELS WITH 12:33:30 THIS BRAKE OVERRIDE. TOYOTA ADVISED THE COMMITTEE IT 12:33:33 HAS DECIDED TO MAKE BRAKE OVERRIDE A STANDARD FEATURE IN 12:33:36 ALL CARS FOR THE 2011 MODEL YEAR FORWARD. 12:33:41 TOYOTA ALSO TOLD US IT WILL UPGRADE THE SOFTWARE FROM 12:33:44 EARLIER MODELS DURING SERVICE FOR OTHER RECALLS. 12:33:47 MR. STRICKLAND, AFTER 2011 WHEN TOYOTA IS DONE WITH ITS 12:33:51 RETROFITTING, WILL THERE BE TOYOTAS ON THE ROAD THAT WILL 12:33:54 NOT HAVE THE BRAKE OVERRIDE? I WOULD IMAGINE FROM YOUR 12:33:57 ANSWER, SIR, NO THERE WILL BE SOME VEHICLE THAT'S WILL NOT 12:34:00 HAVE BRAKE OVERRIDE. DO YOU SUPPORT MAKING BRAKE 12:34:04 OVERRIDE A MANDATORY FEATURE FOR ALL CARS? 12:34:09 WE'RE BEGINNING OUR REEF SEARCH TO JUSTIFY SUCH A MOVE. 12:34:12 BUT IN THE PRELIMINARY FASHION, THE ONE GOAL WE WANT TO HAVE IS 12:34:15 THIS. ANY DRIVER THAT DEPRESSES THE 12:34:17 BRAKE SHOULD BE ABLE TO STOP THE CAR. 12:34:19 AND THAT -- WITH THAT GOAL WE BELIEVE IT HAS GREAT PROMISE. 12:34:23 WELL, TOYOTA'S REACHED A CONCLUSION THAT THEY WANT TO 12:34:27 HAVE THIS BRAKE OVERRIDE. THEY THINK IT'S IMPORTANT S 12:34:29 THERE ANY REASON WHY IF THEY'VE DECIDED A BRAKE OVERRIDE IS 12:34:32 IMPORTANT FOR THE FUTURE CARS AND SOME OF THE EXISTING CARS 12:34:36 THAT THEY WOULDN'T WANT TO MAKE BRAKE OVERRIDE AVAILABLE IN ALL 12:34:39 CARS THAT ARE COMPATIBLE WITH THIS FEATURE? 12:34:42 I'LL ASK THEM THAT MYSELF, BUT CAN YOU IMAGINE ANY REASON THEY 12:34:45 WOULD NOT WANT TO DO THAT? FROM A CONSUMER STANDPOINT, I 12:34:48 WOULD IMAGINE THAT EVERY DRIVER OF A TOYOTA THAT MAY HAVE AN 12:34:51 ISSUE REGARDING SUDDEN UNINTENDED ACCELERATION WOULD 12:34:54 LIKE TO HAVE THIS FEATURE ON THEIR CAR. 12:34:57 SPEAKING, JUST SPEAKING AS A CONSUMER, TOYOTA'S DECISION 12:34:59 MAKING IN TERMS OF HOW THEY IMPLEMENT IT IS AN ONGOING 12:35:04 QUESTION. BUT TO ANSWER YOUR QUESTION, 12:35:05 SIR, I BELIEVE IT WILL BE A POSITIVE MOVE FOR SAFETY AND FOR 12:35:08 THEIR OWN DRIVING PUBLIC. I LOOK FORWARD TO HEARING MR. 12:35:13 LENTZ'S EXPLANATION FOR WHY IT WON'T BE AVAILABLE IN ALL 12:35:15 TOYOTAS. BECAUSE I DON'T SEE A REASON TO 12:35:17 MAKE IT ALL AVAILABLE. MAKE IT AVAILABLE IN ALL THE 12:35:20 TOYOTAS. BUT WE'LL GET HIS RESPONSE TO 12:35:24 THAT. THANK YOU MR. CHAIRMAN. 12:35:29 THANK YOU. THANK YOU, MR. STRICKLAND. 12:35:31 TOYOTA RELIES ON TWO PRIMARY JUSTIFICATIONS FOR ITS ASSERTION 12:35:35 THAT ELECTRONICS PLAYS NO ROLE IN SUDDEN UNINTENDED 12:35:39 ACCELERATION. WE'VE ALREADY DISCUSSED ONE OF 12:35:41 THE SHORTCOMINGS, ONE OF THE JUSTIFICATIONS, THE WORK, THE 12:35:45 ENGINEERING FIRM EXPONENT HAS DONE FOR TOYOTA AND THE PROBLEMS 12:35:48 WITH THAT. THE OTHER JUSTIFICATION TOYOTA 12:35:51 RELIES ON IS THE PREMARKET TESTING THAT TOYOTA'S OWN 12:35:55 ENGINEERS DO BEFORE MANUFACTURING VEHICLES FOR SALE 12:35:56 TO THE PUBLIC. OUR COMMITTEE STAFF CONDUCTED A 12:36:03 TRANSCRIBED INTERVIEW AND TWO ENGINEERS IN JAPAN AND ASKED 12:36:06 THEM MULTIPLE QUESTIONS ABOUT THE TESTING CALLS. 12:36:09 WE LEARNED THIS PREMARKET TESTING HAS SIGNIFICANT 12:36:13 LIMITATIONS. TOYOTA ONLY CONDUCTS THIS TEST 12:36:15 DURING THE DESIGN PHASE OF THE VEHICLES. 12:36:16 AS ONE OF THE TOYOTA ENGINEERS WE INTERVIEWED TOLD THE 12:36:23 COMMITTEE, QUOTE, ONCE, QUOTE, MASS PRODUCTION IS INITIATED 12:36:26 THEN THAT MEANS THE DESIGN IS COMPLETED SO WE DON'T CONDUCT 12:36:30 ANYTHING ADDITIONAL, END QUOTE. SO MR. SCHICKLAND, IS THIS 12:36:35 PREMARKET TESTING STRIKE YOU AS ADEQUATE TO IDENTIFY THE CAUSE 12:36:40 OF UNINTENDED ACCELERATION? THERE'S TWO COMPONENTS THAT 12:36:46 NHTSA IS CONCERNED ABOUT. IT'S COMPLIANCE. 12:36:48 BEFORE A VEHICLE IS PUT INTO THE STREAM OF COMMERCE IT HAS TO BE 12:36:51 COMPLIANT WITH ALL THE FEDERAL MOTOR VEHICLE SAFETY STANDARDS. 12:36:54 THAT'S ONE SET OF ISSUES THAT HAS TO BE TAKEN CARE OF. 12:36:57 THE SECOND PART AFTER THE VEHICLE'S ON THE ROAD, WE WORRY 12:37:01 ABOUT ANY DEFECTS EXPOST. I UNDERSTAND WHAT YOU'RE 12:37:06 SAYING BUT NOW WE'RE TALKING ABOUT BEFORE. 12:37:08 BUT THIS IS BEFORE MASS PRODUCTION. 12:37:10 LET ME GO ON. TOYOTA ENGINEERS ALSO TOLD US 12:37:15 THAT TOYOTA DOES NOT PERFORM THESE DESIGN PHASE TESTS ON A 12:37:19 LARGE NUMBER OF VEHICLES AND AS A RESULT IT SAMPLES MAY NOT BE 12:37:24 REPRESENTATIVE ENOUGH TO TEST FOR THE RISK OF A RARE EVENT 12:37:27 SUCH AS A SUDDEN, UNINTENDED ACCELERATION. 12:37:30 SOME OF THE TESTS TOYOTA RELIED ON FOR ITS CLAIM THAT THE 12:37:33 ELECTRONIC SYSTEM HAD UNDERGONE, QUOTE, EXTENSIVE TESTING, 12:37:37 UNQUOTE, INVOLVES SAMPLE SIZES OF JUST ONE OR TWO VEHICLES. 12:37:43 SO, MR. STRICKLAND, DOES TOYOTA'S APPROACH STRIKE YOU AS 12:37:47 ADEQUATE? THE APPROACH, EVERY 12:37:50 MANUFACTURE HAS A DIFFERENT APPROACH. 12:37:52 THE ONLY THING WE'RE CONCERN THE ABOUT IS WHAT HAPPENS ON THE 12:37:55 ROAD. NO, I UNDERSTAND, BUT YOU 12:37:57 SAID THERE WAS A PREMARKET PHASE THAT YOU REQUIRED. 12:38:00 IS THE TEST OF ONE OR TWO CARS IN THE DESIGN PHASE, IN YOUR 12:38:06 VIEW, SUFFICIENT? I WOULD HAVE TO COMPARE THAT 12:38:10 WITH OTHER MANUFACTURES' TESTING PROTOCOLS AND I DON'T HAVE THAT 12:38:14 OFFHAND. BUT I WILL DEFINITELY GET BACK 12:38:15 TO YOU ON THE RECORD ABOUT IT. SUDDEN UNINTENDED 12:38:20 ACCELERATION OCCURS RARELY AND INTERMITTENT WILL HE -- I ASKED 12:38:24 YOU THAT. ONE OR TWO VEHICLES. 12:38:27 FURTHER MORE WE LEARNED FAIL SAFE MECHANISMS IN TOYOTA 12:38:29 VEHICLES ARE DESIGNED TO DETECT SINGLE POINT, SINGLE EVENT 12:38:33 FAULTS. IN OTHER WORDS, FAULT THAT'S 12:38:35 OCCUR IN ISOLATION AND EFFECT ONLY ONE VEHICLE COMPONENT. 12:38:38 TOYOTA'S TESTING OF CRITICAL COMPONENTS OF THE ELECTRONIC 12:38:42 THROTTLE CONTROL SYSTEM REFLECTS THIS FOCUS IN THAT THEY DO NOT 12:38:45 TEST FOR MULTIPLE EVENT OR MULTIPLE COMPONENT FAULTS. 12:38:49 NUMEROUS ACADEMICS AND INDEPENDENT EXPERTS TOLD 12:38:52 COMMITTEE STAFF THAT RARE MULTIPLE EVENT FAULTS COULD PLAY 12:38:55 A ROLE IN SUDDEN UNINTENDED ACCELERATION. 12:38:58 IT SEEMS TO ME THAT TOYOTA SHOULD TRY TO IDENTIFY ALL 12:39:02 POTENTIAL FAULTS, NOT JUST THE MOST FREQUENT ONES, AND DEVELOP 12:39:05 TESTS TO PREVENT THEM. SO, MR. STRICKLAND, DO YOU AGREE 12:39:09 TOYOTA SHOULD TAKE A COMPREHENSIVE APPROACH TO TEST 12:39:12 FOR POTENTIAL CAUSES OF SUDDEN UNINTENDED ACCELERATION? 12:39:16 THEY SHOULD TAKE A COMPREHENSIVE APPROACH. 12:39:20 NHTSA'S WORK WITH NASA WILL BE A MULTIPLE FAULT CAUSATION STUDY 12:39:25 WHICH TAKES INTO ACCOUNT POSSIBLE INTERVENING EVENTS 12:39:27 WHICH COULD CAUSE THIS. THAT IS OUR STUDY. 12:39:29 THAT IS OUR APPROACH. AND WE WOULD HAVE THE 12:39:31 EXPECTATION FROM OUR FINDING THAT'S IF WE DO FIND VEHICLE 12:39:34 DEFECT THAT THAT WILL BE PART OF OUR VEE PONS TO TOYOTA IF THAT'S 12:39:38 THE CASE. BUT NHTSA'S APPROACH IS A MULTI 12:39:42 CAUSAL ANALYSIS IN HOW WE CAN REPLICATE THAT FAULT. 12:39:44 BASED ON THE DISCRETION OF TOYOTA'S PREMARKET TESTING 12:39:48 YOU'VE HEARD TODAY, DO YOU BELIEVE TOYOTA'S PREMARKET 12:39:50 TESTING PROVIDES A SUFFICIENT BASIS TO CONCLUDE THAT THERE ARE 12:39:54 NO POTENTIAL ELECTRONIC CAUSES OF SUDDEN UNINTENDED 12:39:58 ACCELERATION? I DON'T THINK YOU CAN USE A 12:40:00 PREMARKET ANALYSIS AS A DETERMINATIVE FACTOR THAT THERE 12:40:03 IS NO PROBLEM. I THINK YOU HAVE TO NOT ONLY DO 12:40:05 PREMARKET TESTING, BUT YOU HAVE TO DO LONG-TERM, YOU KNOW, I 12:40:11 GUESS LONG-TERM STUDIES OF HOW YOUR VEHICLE REACTS IN THE REAL 12:40:16 WORLD AS A NUMBER OF MANUFACTURERS DO. 12:40:19 SO I DON'T THINK THAT NHTSA WOULD SAY A PREMARKET TEST 12:40:23 VALIDATES A LOCK TERM ANSWER OF THE POSSIBILITY OF THERE BEING A 12:40:27 FAILURE. WELL I'M CONCERNED ABOUT THE 12:40:28 PREMARKET TESTING ITSELF, AND IT SEEMS TOYOTA'S IS NOT AN 12:40:33 ADEQUATE SUBS TUTD FOR THOROUGH TESTING NEEDED TO IDENTIFY 12:40:37 POTENTIAL DEFECTS AFTER MANUFACTURING IS COMPLETE, AND 12:40:39 IT'S TIME FOR TOYOTA TO STOP MAKING PUBLIC ASSURANCES ABOUT 12:40:42 THE INFALLIBILITY OF THEIR ELECTRONIC SYSTEMS WHEN THEY 12:40:46 DON'T HAVE COMPREHENSIVE TESTING TO BACK IT UP. 12:40:48 THANK YOU, MR. CHAIRMAN. THANK YOU. 12:40:56 M IN RESPONSE TO SOME OF THE 12:40:58 QUESTIONS FROM MR. BURGESS AND CHAIRMAN WAXMAN, A COUPLE 12:41:02 QUESTIONS. FIRST ONE IS A LETTER DATED 12:41:05 FEBRUARY 22nd, 2010, SENT TO SECRETARY LaHOOD BY MYSELF AND 12:41:11 MR. WAXMAN. AND ON PAGE FOUR, SUB PART B 12:41:16 ASKS THAT NHTSA REOPEN ITS INVESTIGATION OF P.E., THAT'S 12:41:26 PRELIMINARY EXAMINATION 0421 WHICH HAD 37 CONSUMER COMPLAINTS 12:41:30 ON SUDDEN, UNINTENDED ACCELERATIONS IN THE CAMRY, 12:41:37 2002, 2003 CAMRY, SOLARA AND LEXUS. 12:41:42 WE'VE YET TO HAVE A RESPONSE. ARE YOU GOING TO REOPEN THAT 12:41:44 INVESTIGATION AS REQUESTED? THE UNIVERSE OF TEST VEHICLES 12:41:50 ASSUMES THESE, ALL OF THESE PARTS THAT YOU ASKED FOR, SO IN 12:41:53 TERMS OF A DEFECT INVESTIGATION THAT'S PART OF THE NASA STUDY 12:41:58 THAT'S ONGOING, THAT WILL HAVE DONE IN THE -- BY THE END OF THE 12:42:02 SUMMER. SO TO ANSWER -- THE SHORT ANSWER 12:42:04 TO YOUR QUESTION IS WE ARE RE-EVALUATING ALL THIS WORK IN 12:42:07 LIGHT OF THE NASA STUDY. IN ADDITION TO, THAT'S GOING TO 12:42:10 BE INCLUDED IN THE NAS STUDY BUT WE'LL DEFINITELY GET BACK TO YOU 12:42:14 ON THE RECORD IN DIRECT RESPONSE TO SUB PART B. 12:42:16 WELL, IN LOOKING AT THAT AND IN RESPONSE TO MR. WAXMAN'S 12:42:20 QUESTIONS, YOU SAID THIS BRAKE OVERRIDE SYSTEM IS A HUGE SIFT 12:42:24 ISSUE. WHY WOULDN'T NHTSA REQUIRE 12:42:26 TOYOTA THEN TO HAVE THE BRAKE OVERRIDE SYSTEM IN 2002 AND 2003 12:42:32 LEXUS ES300s, THE TOYOTA CAMERA AND THE TOYOTA CAMERA SOLERA 12:42:39 FROM 2002, 2003 SINCE WE HAD 37 CONSUMER COMPLAINTS AND WE'VE 12:42:42 ASKED THAT IT BE REINVESTIGATED? WHY WOULDN'T YOU REQUIRE THE 12:42:45 BRAKE OVERRIDE SYSTEM BE PUT IN ALL VEHICLES OR TOYOTA MODELS OF 12:42:53 VEHICLES THAT HAD THIS SUDDEN UNEXPLAINED ACCELERATION. 12:42:56 IT IS STILL AN ONGOING INVESTIGATION, MR. STUPAK. 12:43:04 IF IT IS FOUND THAT THAT IS PART OF THAT, WE WOULD ASK FOR A 12:43:07 REMEDY AND THAT BRAKE OVERRIDE COULD BE A MANDATED PART OF THAT 12:43:10 REMEDY. BECAUSE IT IS AN INVESTIGATION, 12:43:12 IT IS ONGOING, WHICH IS INCLUSIVE AND THE KEY TO THE IN 12:43:15 AS THAT STUDY WE ARE NOT IN POSITION TO -- 12:43:17 WELL. -- MAKE THAT DEMAND AT THIS 12:43:19 TIME. IF TOYOTA IS PUTTING IT IN 12:43:22 SOME OF THE VEHICLES NOW, BE IN ALL VEHICLES IN 2011, THEN BY 12:43:26 PUTTING IT IN CERTAIN VEHICLES NOW, IS THAT ADMISSION, THEN, 12:43:30 THAT YOU HAVE A DEFECT IN THOSE MODELS AND THAT'S WHY YOU'VE GOT 12:43:35 TO PUT IN THIS BRAKE OVERRIDE? THAT ISN'T ADMISSION, YOU CAN 12:43:43 ASK MR. LENS THOSE QUESTIONS. BUT FROM NHTSA'S PERSPECTIVE, WE 12:43:48 CAN ONLY FORCE MANTDTORY RECALL IF THERE IS A DEFECT WE CAN 12:43:50 PROVE IN COURT AND WE HAVEN'T BEEN ABLE TO DO THAT YET. 12:43:53 BUT THE FACT THAT TOYOTA FEELS THEY NEED TO INSTALL THIS IN 12:43:56 SOME VEHICLES MAY BE INDICATIVE OF WHAT THEY FEEL WOULD BE A 12:43:59 PROPER SOLUTION UNTIL THEY CAN COME TO THEIR OWN ANSWERS. 12:44:02 ALL RIGHT. I GUESS I'LL SAVE THOSE 12:44:04 QUESTIONS FOR MR. LENTZ. LET ME ASK YOU THE OTHER 12:44:07 DOCUMENT I PUT BEFORE YOU. IT'S DATED 5/2/2007, IT'S A 12:44:15 MEMORANDUM FROM SCOTT YAWN, THIS IS ON THE SMITH VEHICLE THAT MR. 12:44:21 BURGESS HAD ASKED ABOUT. IN THE LAST PARAGRAPH, FIRST 12:44:25 LINE IT SAYS DISCOLORATION RUST AND SURFACE DAMAGE TO BRAKE 12:44:29 ROTORS IS VISIBLE THROUGH ALL FOUR WHEEL AP TOURS. 12:44:32 IF YOU GO ON THE NEXT PAGE, SECOND PARAGRAPH, LOWER PART OF 12:44:36 THAT PARAGRAPH, IT INDICATES A BRAKE COMPONENTS EXHIBIT WEAR 12:44:41 AND DAMAGE INCONSISTENT WITH NORMAL OPERATION AND 12:44:44 INCONSISTENT WITH THE INDICATED VEHICLE MILEAGE. 12:44:45 THEN THEY HAVE A NUMBER OF PHOTOGRAPHS WHICH SHOW THE 12:44:50 DAMAGE, SHOWING BRAKE TEMPERATURE SHOWS THE BRAKES 12:44:53 BEING APPLIED WHILE THE VEHICLE IS MOVING AT SPEED. 12:44:56 SO THE SMITH VEHICLE, MAYBE EVERY TIME YOU TURN THE KEY YOU 12:45:00 DON'T FIND A SUDDEN UNINTENDED ACCELERATION, OBVIOUSLY THERE IS 12:45:03 DAMAGE THERE OUTSIDE THE NORMAL WEAR AND TEAR ON A VEHICLE OF 12:45:06 THIS AGE S THAT CORRECT? YES, SIR, THAT'S CORRECT. 12:45:09 AND YOU'VE NEVER FOUND ANY VEHICLES THAT'S BEEN CONSIDERED 12:45:13 TO HAVE SUA, SUDDEN UNINTENDED ACCELERATION, YOU HAVEN'T BEEN 12:45:17 ABLE TO TURN THE KEYS, YOU SAID YOU HAD 20 MODELS AND YOU 12:45:20 HAVEN'T FOUND THIS SUDDEN UNINTENTED ACCELERATION? 12:45:25 WE HAVEN'T HAD AN EVENT WHERE THE ENGINEER TURNED ON THE CAR, 12:45:28 WAS ABLE TO REPLICATE THE FAULT BECAUSE OF SOMETHING OUTSIDE THE 12:45:34 PARAMETERS OF A FLOOR MAT ENTRAPMENT ISSUE. 12:45:36 AND WE DON'T KNOW WHEN THAT OCCURS, THAT'S WHY WE GIVE IT 12:45:39 THIS NAME, SUDDEN UNINTENDED ACCELERATION. 12:45:43 WE HAVE TO CATEGORIZE ALL THOSE EVENTS. 12:45:45 THERE COULD BE MULTIPLE CAUSES FOR THAT. 12:45:48 THAT'S THE REASON WE'RE HAVING OUR LONG-TERM INVESTIGATION FOR 12:45:50 THE NATIONAL ACADEMY OF SCIENCES AND HAVING NASA SPECIFICALLY 12:45:53 LOOK AT TOYOTA'S ELECTRONIC THROTTLE CONTROL SYSTEM FOR THE 12:45:58 STUDY THAT WE'RE HOPING TO FINISH AT THE END OF THE SUMMER. 12:46:01 MY TIME IS UP. MR. BURGESS FOR QUESTIONS? 12:46:03 THANK YOU, MR. CHAIRMAN. ON THE -- MR. STRICKLAND, ON THE 12:46:11 ORDER OF THE BRAKE OVERRIDE THAT NOW IS RECEIVING SO MUCH 12:46:13 ATTENTION, YOU MENTIONED, I THINK, THAT INSTALLING IT, THE 12:46:20 BRAKE OVERRIDE IN TOYOTAS WOULD BE A POSITIVE MOVE, IS THAT 12:46:24 CORRECTLY STATE YOUR FEELINGS? YES, SIR, I THINK THAT WOULD 12:46:27 BE A VERY POSITIVE MOVE. WHAT OTHER MANUFACTURES HAVE 12:46:31 INSTALLED A BRAKE OVERRIDE SYSTEM ON THEIR CARS? 12:46:35 THERE ARE SEVERAL MANUFACTURES THAT HAVE BRAKE 12:46:38 OVERRIDE SYSTEMS. ARE THERE SOME THAT DON'T. 12:46:40 THAT ARE SOME THAT DON'T. WHY IS THAT NOT A REQUIREMENT 12:46:44 IF YOU THINK IT WOULD BE A GOOD MOVE FOR TOYOTA WOULD IT BE A 12:46:47 GOOD MOVE FOR OTHER MANUFACTURERS? 12:46:48 WE HAVE BRAKE OVERRIDE HAS TREMENDOUS PROMISE WHICH IS THE 12:46:53 REASON WE'RE TAKING OUR PRELIMINARY RESEARCH FOR 12:46:54 POSSIBLE RULE MAKING IN FIRMS OF DEALING WITH THIS ISSUE, I GUESS 12:46:59 ACROSS THE REST OF THE FLEET, THAT'S GOING TO BE PART OF A 12:47:01 STUDY AND PART OF THE ONE OF THE ANSWERS WILL BE POSSIBLE 12:47:05 LONG-TERM SOLUTIONS, EITHER FROM THE NATIONAL ACADEMY OF 12:47:08 SCIENCES, WHICH MAY INCLUDE. ROUGH NUMBERS, WHAT 12:47:10 PERCENTAGE OF THE FLEET HAS THE BRAKE OVERRIDE RIGHT NOW? 12:47:12 THAT I'M NOT SUREMENT I'LL HAVE TO GET BACK TO YOU ON THE 12:47:15 RECORD FOR THAT. WHY ISN'T IT MORE WIDELY 12:47:18 USED? WHAT ARE THE BARRIERS TO THE 12:47:21 IMPLEMENTATION? THERE'S DIFFERENT SYSTEMS IN 12:47:23 TERMS OF HOW THE BRAKE AND THE ACCELERATOR WORK IN TERMS OF 12:47:26 THEIR SOFTWARE CONFIGURATION, THEIR MECHANICAL LINKAGES. 12:47:30 I'M SURE EVERY MANUFACTURER HAS DIFFERENT STRATEGIES IN 12:47:33 MANUFACTURING AND CONSTRUCTION WHICH MAY LEAD TO DIFFERENT 12:47:36 DECISIONS. IF YOU'RE THINKING ABOUT RULE 12:47:38 MAKING, THEN PRESUMABLY YOU'RE LOOKING AT CARS WITH ELECTRONIC 12:47:42 THROTTLE CONTROL WOULD HAVE A REQUIREMENT FOR A BRAKE OVERRIDE 12:47:45 SYSTEM. SO THAT IF THE BRAKE IS APPLIED, 12:47:48 THE THROTTLE, THE DEFAULT IS FOR THE THROTTLE TO STOP ACTION. 12:47:52 YES, SIR, WE'RE ABSOLUTELY LOOKING AT THAT. 12:47:54 SO IF THAT'S GOOD FOR TOYOTA, THEN IT'S GOOD FOR X-% OF THE 12:48:00 FLEET THAT DOES NOT HAVE THE BRAKE OVERRIDE SYSTEM. 12:48:04 THE SAFETY OF THE ENTIRE FLEET, NOT ONE MANUFACTURER. 12:48:06 WHEN WE HAD THE OTHER HEARING, AND I DON'T HAVE THE 12:48:09 INFORMATION IN FRONT OF ME TODAY, BUT IT WAS A LIST RATED, 12:48:12 A NUMERICAL LIST OF COMPLAINTS RECEIVED BY THE -- YOUR AGENCY 12:48:17 ABOUT CARS, AND TOYOTA SHOWED UP ON THE LIST, BUT THEY WERE, I 12:48:22 DON'T REMEMBER, 16, 17, 18 ON THE LIST. 12:48:24 THAT MEANS THERE WERE 16 OTHER CAR MANUFACTURERS WHERE THE CARS 12:48:27 HAD MORE COMPLAINTS. THAN TOYOTA. 12:48:31 AND YET HERE WE ARE INVOLVED IN A SERIES OF HEARINGS OVER 12:48:34 TOYOTA. HAVE YOU LOOKED AT THE CARS IN 12:48:36 THE COMPLAINTS THAT SCORED HIGHER THAN TOYOTA OR WORSE THAN 12:48:40 TOYOTA, IF YOU WILL, ON THAT LIST? 12:48:42 AND ARE WE -- ARE WE ACTIVELY PURSUING THE COMPLAINTS THAT 12:48:48 CAME INTO NHTSA FOR THOSE VEHICLES AS WELL? 12:48:53 NHTSA LOOKS ACROSS ALL MANUFACTURERS IN TERMS OF HOW 12:48:56 THE FOCUS ON TOYOTA, THERE WAS CLEARLY AN ANOMALY IN THE 12:49:00 ACCELERATION EVENTS DURING THE PERIOD THAT WE'RE TALKING ABOUT, 12:49:02 WHICH IS THE REASON WHY NHTSA HAS OPENED, YOU KNOW, UP UNTIL 12:49:05 THIS POINT WE HAD, I BELIEVE WE OPENED EIGHT INVESTIGATIONS INTO 12:49:10 THIS ISSUE PRIOR TO THE SANTY CRASH. 12:49:15 SO WE HAVE TAKEN A LOOK -- WE'VE ET TREATED TOYOTA AS WE WOULD 12:49:19 ANY MANUFACTURER. YES, THERE ARE OTHER 12:49:21 MANUFACTURERS WITH SIMILAR COMPLAINTS, MORE COMPLAINTS. 12:49:24 WE LOOK AT THEM JUST AS VIGOROUSLY AS WE DO TOYOTA. 12:49:28 IT'S JUST THAT IN TERMS OF THE ACTUAL PROFILE AND IN TERMS OF 12:49:32 TREND ANALYSIS, TOYOTA IN THIS AREA DID HAVE A HIGHER TENDENCY 12:49:36 TOWARD THE LATER YEARS OF THE CAMRY AFTER 2002. 12:49:39 AND WAS THAT ALL RELATED TO CONTROL? AT HAD THE ELECTRONIC0 12:49:43 YES, SIR. LET ME ASK YOU THIS. 12:49:45 LET'S TALK ABOUT NASA FOR A MINUTE BEFORE I RUN OUT OF TIME. 12:49:49 YOU REFERRED TO THE RESEARCH PLAN. 12:49:55 HAS -- HAVE YOU SUBMITTED A RESEARCH PLAN TO -- FOR NASA'S ? 12:50:00 WE WILL BE MEETING WITH NASA NEXT WEEK. 12:50:04 THEY HAVE REQUIRED A HUGE AMOUNT OF WORK FOR THE TOYOTA SOURCE 12:50:09 CODE. THERE WERE ISSUES TO OVERCOME. 12:50:11 THERE ARE A TREMENDOUS AMOUNT OF DOCUMENTS NASA HAD TO RECEIVE IN 12:50:15 ADDITION TO OUR AUTOMOTIVE EXPERTS WORKING WITH NASA. 12:50:19 SO OUR HOPE IS TO HAVE A TEST PLAN DONE FAIRLY SOON AND 12:50:23 HOPEFULLY ONCE WE GET THAT FINALIZED WE'LL SUBMIT IT TO THE 12:50:29 VOLPE CENTER FOR PEER REVIEW. WE HAVE NOT FINISHED YET. 12:50:32 SO YOU WILL SUBMIT THIS ANALYSIS ALSO FOR EVALUATION 12:50:36 FROM THE COMMITTEE WHEN YOU HAVE IT IN HAND? 12:50:39 ABSOLUTELY. THE TIMELINE ON THE NASA REVIEW 12:50:42 IS FOR IT TO BE COMPLETED BY THE END OF AUGUST? 12:50:45 THAT IS OUR HOPE. YOU DON'T HAVE A PLAN YET, 12:50:49 BUT WE'RE GOING TO GET ONE. IS THAT CORRECT? 12:50:52 YES. YOU WILL GET THAT. 12:50:54 WHAT IF WE GET TO THE END OF AUGUST AND WE HAVEN'T GOTTEN 12:50:59 THERE? WELL, WE HAVE A TIMELINE AND 12:51:01 A GOAL TO MAKE SURE WE HAVE RESULTS, BUT THE PRIMARY 12:51:05 OBJECTIVE IS TO MAKE SURE WE GET IT RIGHT. 12:51:09 THERE ARE ISSUES THAT MAY TAKE MORE TIME. 12:51:11 WE'LL UPDATE THE COMMITTEE ABOUT THE ISSUES AS THEY ARISE. 12:51:14 OUR HOPE IS TO BE DONE BY THE END OF THE SUMMER. 12:51:18 DO YOU HAVE ENOUGH FUNDING TO DO WHAT YOU NEED TO DO? 12:51:21 WE HAVE NOT DONE A BUDGET THIS YEAR AND WON'T DO APPROPRIATIONS 12:51:24 UNTIL LATE IN THE YEAR. CAN YOU PAY FOR THE THINGS YOU 12:51:26 NEED TO DO TO GET THIS INFORMATION? 12:51:28 AT THE TIME WE ARE PROPERLY RESOURCED NOW. 12:51:32 IF THERE ARE ANY RESOURCE ISSUES THAT CONFRONT US, WE'LL COME 12:51:35 BACK AND INFORM THE CONGRESS. LET THE RECORD SHOW NHTSA IS 12:51:39 AWASH IN CASH AND NEEDS NO MORE MONEY. 12:51:41 I THINK THAT'S WHAT HE SAID. [ LAUGHTER ] 12:51:45 THANK YOU FOR THE IMPLICATION. 12:51:48 ANY QUESTIONS? ADMINISTRATOR STRICKLAND, ONE 12:51:58 THING I'M CURIOUS ABOUT IS THE WORK THAT YOUR AGENCY IS DOING 12:52:02 LOOKING AT OTHER TYPES OF ANALYSIS THAT ARE BEING DONE BY 12:52:07 MANUFACTURERS IN OTHER PARTS OF THE WORLD LOOKING INTO THE 12:52:11 PROBLEM OF EVALUATING ELECTRONIC THROTTLE CONTROL SYSTEMS. 12:52:14 ARE YOU AWARE OF ANY OF THE WORK BEING DONE BY THE EUROPEAN 12:52:20 MANUFACTURERS IN TERMS OF EDUCATION AND TRAINING TO 12:52:23 ANALYZE POTENTIAL PROBLEMS WITH THOSE SYSTEMS? 12:52:26 I AM NOT, BUT I AM CERTAIN THAT MY STAFF IS. 12:52:30 MORE THAN HAPPY TO HAVE THEM COME AND SPEAK TO YOU AND YOUR 12:52:34 STAFF AND GET BACK TO YOU ON ANY QUESTIONS REGARDING THE 12:52:37 DIFFERENCES IN APPROACHES BETWEEN THE EUROPEAN UNION, THE 12:52:41 JAPANESE OR ANY OTHER MANUFACTURER. 12:52:44 I WOULD BE HAPPY TO DO THAT AND WOULD ENCURRENTLY YOUR STAFF 12:52:47 AS PART OF ITS WORK ON THE INVESTIGATION OF THE SPECIFIC 12:52:50 PROBLEM TO LOOK AT WHAT'S HAPPENING WITH THOSE OTHER 12:52:53 MANUFACTURERS, WHAT LESSONS THEY HAVE LEARNED AND WHAT THEIR 12:52:57 SAFETY RECORD IS ON THE ISSUE OF SUDDEN, UNINTENDED ACCELERATION 12:53:02 AFTER THE PROGRAMS HAVE BEEN IMPLEMENTED. 12:53:05 ABSOLUTELY. ONE OF THE OTHER QUESTIONS I 12:53:07 WANTED TO ASK YOU ABOUT IS THROUGHOUT THIS PROCESS, TOYOTA 12:53:14 HAS REPRESENTED TO THE COMMITTEE THAT IT RETAINED EXPONENT TO 12:53:20 CONDUCT AN INDEPENDENT INVESTIGATION OF THE UNDERLYING 12:53:22 CAUSES RELATED TO THESE PROBLEMS WITH SUDDEN UNINTENDED 12:53:27 ACCELERATION. YOU HAVE BEEN HERE WHEN WE'VE 12:53:29 TALKED ABOUT THAT. YES, SIR. 12:53:31 THEY HAVE MADE SIMILAR REPRESENTATIONS TO YOU. 12:53:33 THAT'S CORRECT. NOW THE COMPANY THEY RETAINED 12:53:38 TO DO THAT ANALYSIS, EXPONENT, DO YOU KNOW ABOUT THEM AND WHAT 12:53:42 THEY DO? I AM FAIRLY FAMILIAR WITH THE 12:53:44 COMPANY AND ITS PRIOR NAME AND THE ISSUES THAT IT'S WORKED ON 12:53:48 OVER THE YEARS. ITS PRIOR NAME BEING FAILURE 12:53:51 ANALYSIS ASSOCIATES? THAT'S CORRECT. 12:53:53 ARE YOU AWARE OF ANY INSTANCE WHERE FAILURE ANALYSIS 12:53:56 ASSOCIATES OR EXPONENT HAS BEEN RETAINED TO DO AP INDEPENDENT 12:54:04 ANALYSIS ON BEHALF OF A CONSUMER WHO WAS INJURED IN A DEFECTIVE 12:54:10 AUTOMOBILE? MY RECOLLECTION OF EXPONENT 12:54:12 OR FAILURE ANALYSIS PROBABLY GOES BACK TO 1993. 12:54:16 SO THAT'S THE WINDOW THAT I HAVE KNOWLEDGE OF. 12:54:21 I AM NOT AWARE OF THEM DOING WORK FOR A VICTIM OR CONSUMER OF 12:54:27 A PRODUCT. THAT'S ALL THE QUESTIONS I 12:54:28 HAVE. THAT CONCLUDES THE QUESTIONS 12:54:30 FOR THIS WITNESS. ADMINISTRATOR, THANK YOU. 12:54:32 FOR THE RECORD, I WOULD LIKE TO ENTER INTO THE RECORD THE TWO 12:54:36 DOCUMENTS I PRESENTED TO THE ADMINISTRATOR ON QUESTIONS OF 12:54:39 FEBRUARY 22, 2010, A LETTER FROM CHAIRMAN WAXMAN AND MYSELF TO 12:54:47 SECRETARY LA HOOD AND THE MEMORANDUM DATED MAY 7, 2007 12:54:51 CONCERNING THE SMITH VEHICLE. WITHOUT OBJECTION THEY WILL BE 12:54:55 ENTERED INTO THE RECORD. THANK YOU FOR BEING HERE. 12:54:57 THANK YOU VERY MUCH, MR. CHAIRMAN. 12:55:30 THANK YOU FOR BEING HERE. YOU'RE ON OUR SECOND PANEL. 12:55:34 WE HAVE JAMES E.LINTZ, PRESIDENT AND CHIEF OPERATING OFFICER OF 12:55:38 TOYOTA MOTOR SALES USA INCORPORATED. 12:55:41 IT IS THE POLICY OF THIS SUBCOMMITTEE TO TAKE ALL 12:55:43 TESTIMONY UNDER OATH. PLEASE BE ADVISED THAT YOU HAVE 12:55:45 THE RIGHT UNDER THE RULES OF THE HOUSE TO BE ADVISE BID COUNSEL 12:55:49 DURING YOUR TESTIMONY. DO YOU WISH TO BE REPRESENT BID 12:55:52 COUNSEL? YES. 12:55:54 TED HESTER IS BEHIND ME. YOU MAY CONSULT WITH HIM AT 12:55:59 THE APPROPRIATE TIME. THANK YOU. 12:56:02 PLEASE RAISE YOUR RIGHT HAND AND TAKE THE OATH. 12:56:06 DO YOU SWEAR OR AFFIRM THE TESTIMONY YOU'RE ABOUT TO GIVE 12:56:09 TO BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH IN THE 12:56:12 MATTER PENDING BEFORE THIS COMMITTEE? 12:56:17 I DO. 12:56:19 THE WITNESS IS NOW UNDER OATH. 12:56:21 IF YOU WOULD LIKE TO BEGIN WITH AN OPENING STATEMENT, FIVE 12:56:24 MINUTES. IF YOU HAVE A LONGER STATEMENT 12:56:26 WE'LL SUBMIT IT FOR THE RECORD. THANK YOU, CHAIRMAN STU PACK, 12:56:31 MEMBERS OF THE SUBCOMMITTEE. THANK YOU FOR INVIING ME HERE 12:56:35 TODAY. I AM THE PRESIDENT AND CHIEF 12:56:37 OPERATING OFFICER OF TOYOTA MOTOR SALES USA. 12:56:40 I'M HONORED TO RETURN HERE TO REPRESENT THE 30,000 AMERICANS 12:56:49 THOUSANDS MORE FROM THOSE WHO BRING GREAT DEDICATION AND 12:56:53 SPIRIT TO THEIR JOBS EACH AND EVERY DAY. 12:56:56 THREE WEEKS AGO I SAID TOYOTA IS COMMITTED TO STRENGTHENING FOCUS 12:57:00 ON SAFETY AND QUALITY ASSURANCE, IN COMMUNICATING EFFECTIVELY 12:57:03 WITH CUSTOMERS AND REGULATORS. IN SUBSEQUENT HEARINGS FOUR OF 12:57:08 MY SENIOR COLLEAGUES FROM THE U.S. AND JAPAN INCLUDING OUR 12:57:12 PRESIDENT AKIO TOYODA ALSO PREJUDICED TO IMPROVE 12:57:20 RESPONSIVENESS ON SAFETY ISSUES. THERE IS SUBSTANTIAL PROGRESS IN 12:57:23 MONITORING THE COMMITMENTS. WE ARE TAKING MAJOR STEPS TO 12:57:27 BECOME A MORE RESPONSIVE SAFETY FOCUSED ORGANIZATION, LISTENING 12:57:32 CLOSELY TO OUR CUSTOMERS RESPONDING MORE LIKELY TO THEIR 12:57:35 CONCERNS AND THOSE OF OUR REGULATORS AND TAKING ACTIONS TO 12:57:41 ENSURE THEY ARE AMONG THE INDUSTRY LEADERS IN SAFETY. 12:57:45 MR. TOYODA HAS MADE IMPROVING QUALITY ASSURANCE HIS PRIORITY. 12:57:49 OUR COMPANY IS MOBILIZED TO ENSURE THAT TOYOTA VEHICLES ARE 12:57:52 SAFE AND RELIABLE FOR OUR CUSTOMERS. 12:57:55 NOT ONLY WHEN THEY ARE FIRST SOLD AND LEASED BUT AS THEY ARE 12:57:57 ON THE ROAD FOR YEARS TO COME. UNDER HIS PERSONAL LEADERSHIP WE 12:58:01 HAVE UNDERTAKEN A TOP TO BOTTOM REVIEW OF OUR QUALITY ASSURANCE 12:58:05 PROCESS IN ALL ASPECTS OF GLOBAL OPERATIONS. 12:58:09 TOYOTA HAS APPOINTED A NEW CHIEF QUALITY OFFICER FOR NORTH 12:58:13 AMERICA. A U.S. EXECUTIVE WITH MORE THAN 12:58:15 THREE DECADES OF MANUFACTURING EXPERTISE TO ACT AS THE VOICE OF 12:58:20 THE CUSTOMER IN THIS REGION. NORTH AMERICA NOW HAS A GREATER 12:58:25 SAY ON RECALLS AND OTHER SAFETY ISSUES THAT AFFECT VEHICLES SOLD 12:58:29 IN THE UNITED STATES. IN FACT, THE CHIEF QUALITY 12:58:31 OFFICER HAS A DIRECT LINE TO MR. TOYODA WHEN IT COMES TO ENSURING 12:58:37 OUR CUSTOMERS' SAFETY. THESE CHANGES ARE HAVING A REAL 12:58:40 IMPACT AS REFLECTED IN THE SPEED AND DECISIVENESS OF OUR RESPONSE 12:58:45 LAST MONTH WHEN CONSUMER REPORTS IDENTIFIED A POTENTIAL SOFTWARE 12:58:49 ISSUE WITH THE VEHICLE STABILITY CONTROL IN THE 2010 LEXUS 12:58:55 GX-460. IN ADDITION, OUR SMART 12:58:58 EVALUATION PROCESS HAS SIGNIFICANTLY IMPROVED THE SPEED 12:59:01 OF OUR RESPONSE TO CUSTOMER RE 12:59:55 ADVANCED SAFETY TECHNOLOGIES INCLUDING THE STAR SAFETY 12:59:57 SYSTEM, BRAKE OVERRIDE AND IMPROVED EVENT DATA RECORDERS OR 13:00:02 EDRs THAT WILL READ BOTH PREAND POST CRASH DATA. 13:00:05 OUR DEALERS COMPLETED NEARLY 3.5 MILLION RECALL REMEDIES. 13:00:10 THAT'S MORE THAN 70% OF THE STICKY PEDAL MODIFICATIONS AND 13:00:15 WE'LL CONTINUE TO REACH OUT TO THE AFFECTED OWNERS TO MAKE SURE 13:00:17 THEY BRING VEHICLES TO THEIR DEALERS' ATTENTION. 13:00:20 WE ARE GRATEFUL TO CUSTOMERS FOR THE WAY THEY ARE STANDING BY 13:00:24 TOYOTA. CONSISTENT WITH OUR PLEDGE TO 13:00:26 CONGRESS, WE NOW HAVE 150 EDR READOUT UNITS IN NORTH AMERICA 13:00:31 AND DELIVERED TEN EDR READERS TO NHTSA SO THEY CAN CONDUCT THEIR 13:00:37 OWN DATA RETRIEVAL DURING THEIR INVESTIGATION. 13:00:41 TOYOTA IS WELL ON ITS WAY TO BEING THE FIRST TO FEATURE BRAKE 13:00:47 OVERRIDE TECHNOLOGY AS STANDARD EQUIPMENT ON ALL VEHICLES SOLD 13:00:50 IN THE UNITED ACROSS OUR PRODUCT LINE-UP BY 13:00:55 THE END OF 2010. WE ARE ALSO TAKING THE 13:00:58 EXTRAORDINAIRE STEP OF RETRO-FITTING BRAKE OVERRIDES ON 13:01:02 SEVERAL EXISTING MODELS INVOLVED IN THE RECALLS AS AN ADDITIONAL 13:01:06 MEASURE OF CONFIDENCE FOR CUSTOMERS. 13:01:08 TOYOTA REMAINS CONFIDENCE THAT OUR ET CSI SYSTEM ISN'T THE 13:01:12 CAUSE OFINTENED ACCELERATION. 13:01:18 THEY ARE DESIGNED SO REAL WORLD UNCOMMANDED ACCELERATION CANNOT 13:01:22 OCCUR. WE TEST OUR VEHICLES EXTENSIVELY 13:01:24 TO MAKE SURE THAT THE FAILSAFES AND REDUNDANCIES WORK. 13:01:29 NONETHELESS, WE'RE MAKING A MAJOR SCIENTIFIC EFFORT TO 13:01:32 FURTHER VALIDATE THE SAFETY OF OUR VEHICLES BY OPENING UP OUR 13:01:36 TECHNOLOGY TO AN UNPRECEDENTED LEVEL OF INDEPENDENT REVIEW BY 13:01:40 RESPECTED SAFETY, QUALITY AND ENGINEERING EXPERTS. 13:01:43 THE ENGINEERING AND SCIENTIFIC CONSULTING FIRM EXPONENT HAS 13:01:48 ALREADY COMPLETED MORE THAN 11,000 HOURS OF TESTING AND THE 13:01:54 ANALYSIS OF THE ETCSI SYSTEM AND ITS EVALUATION IS ONGOING. 13:01:59 I HAVE BEEN ADVISED BY SECRETARY SLATER THAT THE QUALITY ADVISORY 13:02:03 PANEL HE CHAIRS WILL INVITE A RIGOROUS PEER REVIEW OF THE 13:02:07 PROCESS AS PART OF ITS ASSESSMENT OF EXPONENT'S 13:02:11 FINDINGS. IT WILL BE ONE OF THE TOPICS OF 13:02:13 DISCUSSION WHEN THE PANEL MEETS WITH MR. TOYODA NEXT WEEK IN 13:02:17 JAPAN. AS MR. TOYODA TOLD SECRETARY LA 13:02:21 HOOD, WE ARE PLEASED TO COOPERATE WITH NHTSA AND WITH 13:02:26 THE ENGINEERS FROM NASA IN THEIR INDEPENDENT EVALUATION OF THE 13:02:31 SYSTEM. WE ALSO COOPERATE WITH THE 13:02:33 NATIONAL ACADEMY OF SCIENCES ON THEIR EVALUATION OF TOYOTA AND 13:02:36 LEXUS VEHICLES AS THEY STUDY THE INDUSTRY-WIDE ISSUE OF 13:02:40 AUTOMOTIVE SAFETY. MEMBERS OF THE COMMITTEE, AT 13:02:43 TOYOTA WE ARE COMMITTED TO DOING MORE THAN JUST CORRECTING 13:02:46 MISTAKES FROM THE PAST. WE'RE LEARNING FROM THEM AND 13:02:50 MAKING MAJOR STEPS TO AVOID THEM IN THE FUTURE. 13:02:53 I'D LIKE TO QUOTE THE WORDS OF MIKE GETZ, A TOYOTA TEAM MEMBER 13:02:57 FOR 22 YEARS FROM GEORGETOWN, KENTUCKY. 13:03:00 IN ONE TEAM ON ALL LEVELS A BOOK WHICH MEANS WHAT IT IS TO WORK 13:03:07 AT OUR PLANT IN KENTUCKY. IT'S WRITTEN BY THE TEAM MEMBERS 13:03:10 OF THE GEORGETOWN PLANT. MIKE WRITES, TOYOTA MAKES 13:03:14 MISTAKES, BUT WE ARE EXPECTED TO TAKE OWNERSHIP TO PREVENT 13:03:22 REOCCURRENCE AND LEARN FROM THEM. 13:03:24 WE JUST DON'T SAY THAT. WE DO THAT. 13:03:26 THAT'S BEEN THE TOYOTA WAY FOR 70 YEARS. 13:03:30 FOR THE FUTURE, BY ACTING SWIFTLY ON SAFETY ISSUES WHEN 13:03:33 THEY ARISE WE ARE DETERMINED TO SET A NEW STANDARD FOR QUALITY 13:03:38 CUSTOMER CARE FOR VEHICLES. OUR GOAL IS TO LEAD THE WAY FOR 13:03:42 OUR INDUSTRY. THANK YOU VERY MUCH. 13:03:43 I'M HAPPY TO ANSWER ANY OF YOUR QUESTIONS. 13:03:47 THANK YOU. THANK YOU AGAIN FOR BEING HERE. 13:03:51 LET ME START -- I ASKED MR. STRICKLAND, SO LET ME ASK YOU 13:03:55 THIS QUESTION. YOU TESTIFIED THAT THE MATS AND 13:03:59 STICKY PEDAL ACCOUNTED FOR 16% OF THE SUDDEN UNINTENDED 13:04:03 ACCELERATION AND THAT'S 84% OF THEM WE HAVE NO ANSWER FOR. 13:04:07 ARE WE ANY CLOSER TO FINDING OUT WHAT ABOUT THE OTHER 84% OF THE 13:04:11 SUDDEN UNINTENDED ACCELERATION, WHAT'S THE CAUSE OF IT? 13:04:14 I THINK IT DEPENDS ON THE DATABASE THAT YOU'RE LOOKING AT. 13:04:18 IN THE CASE OF NHTSA'S DATABASE, IT'S LUMPED TOGETHER AS SPEED 13:04:26 CONTROL. SO IT INCLUDES NOT ONLY EVENTS 13:04:28 OF SUDDEN UNINTENDED ACCELERATION, BUT IT INCLUDES 13:04:33 ANY OTHER TYPE OF SURGE OR HESITATION EVENT. 13:04:36 SO WHEN WE SPOKE LAST, I'M CONFIDENT OF THREE THINGS -- 13:04:44 THAT THE STICKY PEDAL IS BEING REPAIRED. 13:04:47 WE'RE ALREADY ALMOST 70% REPAIRED. 13:04:50 CORRECT. I'M CONFIDENT WE'LL BE UNDER 13:04:52 CONTROL ON THE MATS -- BUT EVEN IF YOU DO 100% MATS, 13:04:56 100% STICKY PEDAL WE HAVE 84% -- AND THESE WERE NUMBERS FROM LAST 13:05:03 TIME. 2,262 SUDDEN ACCELERATION 13:05:11 REPORTS. 19 DEATHS IN THE UNITED STATES. 13:05:16 THE 84% OF THE 2262. SO EVEN IF YOU DID A 100% MATS, 13:05:21 100% STICKY PEDALS WE HAVE 84% WE HAVE NO ANSWER FOR. 13:05:25 YOU TELL US YOU HAVE 11,000 HOURS THAT EXPONENT HAS DONE. 13:05:30 WHAT DID THEY CONCLUDE? WHAT DID THE TESTS SHOW? 13:05:34 WE HAVE NO REPORTS. THEY WON'T GIVE US ANY. 13:05:37 WHAT WAS 11,000 HOURS OF TESTING ON? 13:05:41 ELECTRONICS? COMPUTER? 13:05:42 MICRO PROCESSERS? WE DON'T KNOW BECAUSE EXPONENT 13:05:51 GIVE US THE ANSWERS. QUITE A NUMBER OF QUESTIONS 13:05:55 THERE. FIRST OFF, IN TERMS OF SURGES 13:05:58 AND HESITATIONS, THE POSSIBILITY OF PEDAL MISAPPLICATION, EVEN 13:06:03 THOUGH WE ARE GOING TO DO THESE TWO MECHANICAL FIXES, THOSE ARE 13:06:07 GOING TO EXIST. THEY CAN STILL BE REPORTED TO 13:06:14 NHTSA AS SPEED CONTROLS. THAT'S PART OF THE 84% NUMBER. 13:06:20 IN TERMS OF EXPONENT AND THE SCOPE OF THE WORK THEY PROVIDED 13:06:27 THE COMMITTEE BACK AROUND THE TIME I TESTIFIED. 13:06:31 AN INTERIM REPORT. A VERY SMALL 13:06:34 PORTION OF WHAT THEY ARE TESTING. 13:06:37 I BELIEVE YESTERDAY THEY PROVIDED A SECOND REPORT TO YOU 13:06:43 ALL WITH MORE INFORMATION, BUT THEY ARE TESTING NOT ONLY 13:06:46 VEHICLE ELECTRONICS. THEY ARE TESTING EMI. 13:06:52 THEY ARE TESTING EVERYTHING THAT COULD POSSIBLY CREATE UNINTENDED 13:06:57 ACCELERATION. I GUESS I WOULD AGREE WITH 13:06:59 YOU. YOU COME AND SAY WE'RE DOING 13:07:02 EVERYTHING AND EXPONENT HAS THIS OPEN-ENDED ABILITY TO DO WHAT 13:07:06 NEEDS TO BE DONE. YOU TESTIFIED THERE WAS 11,000 13:07:09 HOURS. WHAT EXPONENT SAYS -- AND ALL WE 13:07:12 HAVE IS FEBRUARY -- IS IT'S IMPORTANT TO NOTE AT THIS STAGE 13:07:15 OF OUR WORK WE NEITHER CLAIM TO HAVE LOOKED AT ALL ISSUES NOR TO 13:07:19 HAVE OPINED ON THE CAUSE OF INCIDENCE OF UNINTENDED 13:07:23 ACCELERATION REPORTED. WE AGREE FURTHER WORK NEEDS TO 13:07:27 BE PERFORMED BEFORE WE REACH SUCH OPINIONS. 13:07:30 WHEN WE ASKED WE RECEIVED TO REPORTS. 13:07:32 JUST SAYING, WORK IS UNDER WAY. IS THIS IN SOME ENGINEER'S HEAD? 13:07:38 NO ONE WRITES DOWN WHAT THEY ARE DOING FOR 1,100 HOURS? 13:07:42 HOW DO YOU PAY THEM. WE HAVE THE PAYMENT SCHEDULE. 13:07:45 $485 FOR THIS PERSON OR THAT PERSON. 13:07:48 HOW IN THE HECK DO YOU KNOW IF YOU'RE GETTING ANYTHING FOR YOUR 13:07:51 MONEY? WELL, YOU KNOW, I AM 13:07:53 CONVINCED THAT IN THE END WHEN WE SEE THE FINAL REPORT AND IT 13:07:59 WILL BE MADE PUBLIC IT WILL BE PEER REVIEWED AND SECRETARY 13:08:03 SLATER IS ALSO GOING TO REVIEW WHAT'S TAKING PLACE. 13:08:10 I'M CONFIDENT WE'LL SEE AN INDEPENDENT REPORT. 13:08:16 WHEN WILL WE SEE A FINAL REPORT? 13:08:18 I DON'T HAVE AN EXACT DATE. WE'RE LOOKING FOR THE END OF 13:08:25 AUGUST. I DON'T THINK THEY HAVE 13:08:26 COMMITTED TO ME A GIVEN DATE. BUT I WILL TELL YOU IN THE CASE 13:08:31 OF EXPONENT, YOU'RE RIGHT. I HAVE LISTENED TO THE COMMENTS 13:08:36 OF THE PAST THAT THEY WERE REPORTING THROUGH PRODUCT 13:08:40 LIABILITY ATTORNEYS. THAT CHANGED THIS WEEK. 13:08:51 EXPONENT IS NOW REPORTING TO STEVE ST. ANGLO AND ALL OF THE 13:08:56 WORK WILL REPORT THROUGH STEVE. I KNOW WE HAVE A CONFERENCE CALL 13:09:00 AS WE DO EVERY WEEK WITH THE STEVE, BEING HE'S FROM THE 13:09:08 MANUFACTURING SIDE HE'S GOING TO DEMAND WE HAVE A WORK PROCESS 13:09:12 WITH EXPONENT GOING FORWARD. AS SOON AS WE HAVE THAT, YOU 13:09:15 WILL HAVE THAT. OKAY. 13:09:21 YOUR COUNSEL HAS INDICATED THAT EXPONENT'S CONTRACT DIDN'T 13:09:24 CHANGE AT ALL. WILL THIS BE A NEW CHANGE OR 13:09:27 WILL IT BE REDUCED TO WRITING ABOUT HOW THEY ARE GOING TO GET 13:09:32 THIS TO YOUR SAFETY? A LETTER HAS GONE TO EXPONENT 13:09:38 FROM STEVE -- WHEN YOU GET A CHANCE WILL 13:09:40 YOU GET IT TO THE COMMITTEE. CAN WE SEE THE DOCUMENT? 13:09:43 IT WAS SUBMITTED WITH OUR WRITTEN STATEMENT. 13:09:47 LET ME ASK YOU ONE LAST QUESTION. 13:09:50 IS THERE GOING TO BE A RECALL TOMORROW ON THE LEXUS LS 13:09:54 VEHICLES? I DON'T KNOW FOR CERTAIN THE 13:09:56 TIMING. BUT THERE IS GOING TO BE A 13:09:58 RECALL ON A STEERING PROBLEM? YES. 13:10:01 IT IS BECAUSE OF THE EXPERIENCE IN JAPAN. 13:10:05 THE STEERING COMPONENT THAT CREATES THIS IS STANDARD IN 13:10:10 JAPAN ON LSs. IT IS A COMPUTER-DRIVEN 13:10:13 STEERING ISSUE. IT IS. 13:10:14 HAVE WE HAD COMPLAINTS IN THIS COUNTRY ABOUT STEERING? 13:10:17 WE HAVE NOT. NOW THAT JAPAN HAS HAD THE ISSUE 13:10:20 WE ARE COMBING THROUGH OUR FILES TO SEE IF THEY HAVED WITH 13:10:25 ANYTHING. IT'S ON ROUGHLY 50% OF THE LSs 13:10:29 IN THE UNITED STATES. IT'S NOT STANDARD LIKE IT IS IN 13:10:32 JAPAN. ABOUT 3800 VEHICLES? 13:10:34 2500 THAT HAVE BEEN SOLD AND 1400 IN DEALER STOCK OR ON THE 13:10:40 WAY TO US THAT COULD BE IMPACTED. 13:10:43 MR. BURGESS, QUESTIONS? THANK YOU. 13:10:46 MR. LENTZ, THANKS FOR BEING WITH US THIS AFTERNOON. 13:10:52 CHAIRMAN STUPAK'S OPENING STATEMENT MADE A LOT OF 13:10:58 REFERENCE TO POLLING. WOULD YOU CARE TO RESPOND TO 13:11:05 SOME OF THE STATEMENTS MADE IN THE OPENING STATEMENT BY THE 13:11:08 CHAIRMAN OF THE SUBCOMMITTEE? WE HAVE THE POLLING COMPANY 13:11:17 AND I CANNOT RECALL THEIR NAME NOW. 13:11:19 THEY HAVE DONE POLLS FOR US FOR THREE YEARS. 13:11:21 BENNETT'S STRATEGY? YES. 13:11:24 THEY HAVE DONE POLLS FOR THE LAST THREE YEARS. 13:11:27 THEY HAVE PROBABLY DONE AT LEAST TWO DOZEN POLLS IN THE PAST. 13:11:32 THE POLL THAT'S IN QUESTION WAS DONE SOON AFTER MY TESTIMONY. 13:11:40 IT WAS DONE SOON AFTER THE EXPOSE RAN ABOUT UNINTENDED 13:11:45 ACCELERATION. THERE WERE QUESTIONS ABOUT DR GILBERT AND ABC NEWS 13:11:48 DR. GILBERT AND ABC. THERE WERE A LOT OF OTHER 13:11:51 QUESTIONS OF THE THINGS MEASURED AS WELL. 13:11:53 YES, WE DID RESEARCH POLLING ABOUT THE WORK DONE BY DR. 13:12:01 GILBERT. IF IT'S NOT PROPRIETARY CAN 13:12:04 YOU GIVE US AN IDEA OF THE POLLING SAMPLE SIZE? 13:12:06 I BELIEVE IT WAS AROUND 1,000. 13:12:09 I MAY NOT BE EXACT. IT WAS 980, 990. 13:12:14 AND YOU WOULD HAVE NO REASON TO PUBLICALLY STATE THE FACT 13:12:17 YOU'RE DOING A POLL. TYPICALLY A COMPANY WOULD NOT 13:12:21 PUBLICIZE THAT IT'S POLLING BECAUSE IT MIGHT INFLUENCE THE 13:12:25 POLL. CORRECT. 13:12:26 YOU DID THIS IN RESPONSE TO THE ABC NEWS PIECE. 13:12:31 SIT UNUSUAL FOR YOUR COMPANY TO DO POLLING RELATED TO OTHER 13:12:36 ISSUES OF THE DAY THAT MAY RELATE TO YOUR PARTICULAR 13:12:39 INDUSTRY? I THINK IT IS. 13:12:41 I THINK THE ABC NEWS PIECE WAS UNUSUAL AS WELL. 13:12:46 IT WAS A CLEAR ATTACK ON THE REPUTATION OF THE COMPANY AND 13:12:54 REALLY CAST DOUBT ABOUT THE THROTTLE CONTROL SYSTEM. 13:12:58 SO WE FELT IT WAS VERY, VERY IMPORTANT TO OUR CUSTOMERS, OUR 13:13:04 DEALERS. SIR, IF YOU DIDN'T MAKE IT 13:13:06 PUBLIC AND IT WAS OBVIOUSLY IN YOUR BEST INTEREST NOT TO GO 13:13:11 PUBLIC WITH THE INFORMATION, WHO DID? 13:13:13 MADE WHICH PUBLIC? THE POLL ON THE ABC NEWS 13:13:19 PIECE. I DON'T KNOW THE ANSWER TO 13:13:22 THAT. YOU DID NOT AND YOUR 13:13:24 COMPANY -- NOT TO MY KNOWLEDGE. 13:13:26 SO IT WAS LEAKED TO A USUALLY RELIABLE SOURCE. 13:13:29 POSSIBLY, I DON'T KNOW. AT THE TIME WE WERE DOING THAT 13:13:35 POLLING WE DIDN'T KNOW HOW MUCH DAMAGE THE ABC REPORT HAD DONE 13:13:40 TO OUR REPUTATION AND WE WERE CONTEMPLATING WHETHER OR NOT WE 13:13:43 WOULD HAVE TO DO NEWSPAPER ADVERTISING TO EXPLAIN OUR SIDE 13:13:46 AND THE RESULTS OF THE POLLING INDICATED THAT CONSUMERS DIDN'T 13:13:51 KNOW MUCH ABOUT WHAT THEY SAID AND DIDN'T CARE ABOUT IT. 13:13:54 SO WE DIDN'T END UP DOING ANYTHING ABOUT IT. 13:13:58 YOU ASKED YOUR REPRESENTATIVE TO REPLICATE THE CONDITIONS THAT 13:14:06 PROFESSOR GILBERT GAVE TO US HERE IN COMMITTEE. 13:14:08 WAS THAT DECISION MADE BEFORE YOU COMMISSIONED THE POLL FROM 13:14:14 THE STRATEGY GROUP? THAT ACTUALLY TOOK PLACE THE 13:14:20 EVENING BEFORE MY TESTIMONY. WHEN WE FOUND OUT24 ABC WAS 13:14:25 RUNNING THAT, EXPONENT WORKED THAT NIGHT TO SEE HOW MANY OTHER 13:14:29 VEHICLES THEY COULD REPLICATE. THAT WOULD HAVE BEEN BEFORE THE 13:14:31 POLLING. DID YOU RECEIVE INFORMATION 13:14:40 BASED ON THE POLLING? SOME OF THE ADVERTISING IN 13:14:43 TERMS OF TOYOTA IN AMERICA HAS BEEN RUN BASED ON SOME OF THE 13:14:46 POLLING INFORMATION, BUT TO MY UNDERSTANDING WITH REGARD TO 13:14:51 GILBERT & CANE, I DON'T BELIEVE WE HAVE RUN ANYTHING ON THAT. 13:14:54 WE HAVE HAD TALK ABOUT THE BRAKE OVERRIDES AND FIXES FOR 13:14:58 THE SUDDEN UNINTENDED ACCELERATION LAST FALL YOUR 13:15:06 COMPANY ANNOUNCED IT WILL BE INTRODUCING A BRAKE OVERRIDE ON 13:15:10 CERTAIN MODELS. WILL THIS COVER ALL TOYOTA 13:15:13 MODELS THAT WERE THE SUBJECT OF UNINTENDED SUDDEN ACCELERATION, 13:15:18 GOING BACK AND INSTALLING THE BRAKE OVERRIDE SYSTEM? 13:15:22 NOT ON EVERY VEHICLE. THE FIRST CUT TO DECIDE WHERE WE 13:15:25 WOULD PUT THOSE WERE REALLY ON ALL VEHICLES THAT HAD THE PUSH 13:15:30 BUTTON START-STOP. SO CAMRY IS AN EXAMPLE. 13:15:33 WE PUT IT ACROSS THE ENTIRE LINE. 13:15:36 SAME WITH I.S., E.S. AND AVALON. WE THEN TOOK A SECOND CUT AND 13:15:44 TOOK A LOOK BASED AT NHTSA'S SUDDEN ACCELERATION. 13:15:50 WHAT OTHER VEHICLES MIGHT WE ADD FOR ADDITIONAL CONSUMER 13:15:53 CONFIDENCE? WHY NOT ALL MODELS FOR 13:15:55 CONSUMER CONFIDENCE? IT'S AN ADDITIONAL EIGHT 13:15:58 MILLION VEHICLES. IN SOME CASES, SOME OF THE 13:16:01 MODELS, WHEN YOU LOOK AT THE NHTSA DATABASE ACTUALLY HAS A 13:16:05 MUCH LESS THAN AVERAGE INCIDENT RATE OF SUDDEN ACCELERATION. 13:16:10 IT'S NOT THE SAME ACROSS ALL VEHICLES ON THE TOYOTA OR LEXUS 13:16:15 SIDE. I THINK PART OF IT IS THE 13:16:17 TREMENDOUS AMOUNT OF ENGINEERING RESOURCE AND TIME IT TAKES TO DO 13:16:21 THAT. YOU'RE TRYING TO REBUILD 13:16:24 CONSUMER CONFIDENCE AFTER A VERY DAMAGING SERIES OF EVENTS THE 13:16:27 PAST EIGHT MONTHS. IT SEEMS LIKE IT WOULD MAKE 13:16:30 SENSE IF THAT'S THE WAY TO REPAIR CONSUMER CONFIDENCE, ADD 13:16:34 THE FEATURE AND NONE OF THE REST OF US HAVE TO WORRY. 13:16:38 WOULD THE BRAKE OVERRIDE SYSTEM PREVENT EVERY AND ALL INSTANCE 13:16:42 AND TYPE OF SUDDEN UNINTENDED ACCELERATION? 13:16:45 IT ONLY WORK IFS YOU STEP ON THE BRAKE. 13:16:49 OKAY. LET ME ASK YOU THIS IF I COULD. 13:16:55 YOU'VE BEEN VERY INDULGENT. I WANT TO SAY AT LEAST IN MY 13:17:00 PART OF THE WORLD THAT YOUR DEALERSHIPS HAVE DONE AN 13:17:03 EXCELLENT JOB OPENING EARLY, STAYING LATE. 13:17:09 I HAVE HAD MY OWN EXPERIENCE WITH YOUR DEALERSHIP IN LIEU 13:17:15 WISVILLE. I THINK THEY HAVE DONE WELL BY 13:17:18 YOUR COMPANY IN WHAT WAS A TOUGH TIME. 13:17:20 THEY STEPPED UP, MET THE CHALLENGE AND HAVE TAKEN IT -- 13:17:25 MET IT HEAD ON. SO YOUR DEALERS IN THE TEXAS 13:17:31 AREA ARE DOING A TREMENDOUS JOB. THANK YOU. 13:17:34 THEY UNDERSTAND THE VALUE OF TAKING CARE OF CUSTOMERS. 13:17:39 THANK YOU. MR. CHAIRMAN, MR. WAXMAN FOR 13:17:47 QUESTIONS PLEASE. I'M STILL CONFUSED. 13:17:53 AS I HEAR YOU SAYING EXPONENT IS CONTINUING TO DO RESEARCH FOR 13:17:56 YOU BUT NOT FOR THE TRIAL LAWYERS. 13:17:58 THEY WILL DO IT FOR ONE OF YOUR CORPORATE EXECUTIVES. 13:18:02 I DON'T THINK THEY ARE MUTUALLY EXCLUSIVE. 13:18:05 AS IT HAS EVOLVED -- SO THEY ARE STILL DOING 13:18:08 RESEARCH? YES. 13:18:09 YOU TOLD THEM TO DO A COMPREHENSIVE EVALUATION, SPARE 13:18:14 NO BUDGET, DO EVERYTHING THAT NEEDS TO BE DONE. 13:18:17 HAVE THEY COMPLETED THEIR RESEARCH? 13:18:20 NO. WHEN YOU WERE HERE LAST THEY 13:18:24 HAD DONE AN INTERIM REPORT. THAT'S ALL WE HAD AT THAT POINT. 13:18:28 THE INTERIM REPORT DIDN'T TELL US MUCH, YET YOU AND -- WELL, 13:18:35 OTHERS FROM TOYOTA ASSURED THE AMERICAN PEOPLE THAT IT IS NOT 13:18:44 THE WHOLE ELECTRONIC SYSTEM THAT COULD POSSIBLY BE THE CAUSE OF 13:18:48 THE SUDDEN ACCELERATION. HOW COULD YOU BE SO SURE ABOUT 13:18:53 THAT? THE ONLY WAY WE CAN BE SURE 13:18:55 AND I'M MORE CONFIDENT TODAY THAN I WAS IN THE PAST. 13:18:58 WE KNOW THAT WE DO A LOT OF WORK AND A LOT OF RESEARCH BEFORE WE 13:19:03 PUT THE VEHICLES ON THE ROAD. I KNOW YOU WILL HAVE ADDITIONAL 13:19:08 QUESTIONS ON THAT. TODAY AS THE SMART TEAMS ARE 13:19:12 GOING OUT AND INVESTIGATING THESE -- 13:19:16 WE WERE TOLD THAT YOU WERE RELYING ON EXPONENT'S RESEARCH 13:19:22 AND CONCLUSIONS, BUT YOU WEREN'T RELYING ON THEIR CONCLUSIONS 13:19:26 BECAUSE THEY STILL HAVEN'T FINISHED THE REPORT. 13:19:29 NO. SO YOU ARE RELYING ON WHAT 13:19:31 YOU WERE TOLD ABOUT THE WORK THAT WAS BEING DONE IN JAPAN 13:19:34 BEFORE THE PRODUCTS WERE PUT INTO PRODUCTION. 13:19:38 YES. I RAISED CONCERNS ABOUT THAT 13:19:40 IN MY OPENING STATEMENT. LET'S GO BACK TO EXPONENT. 13:19:46 IT'S BEEN HELD OUT TO US THAT EXPONENT HAS PUT THIS ISSUE TO 13:19:51 REST. THAT'S WHY EXPONENT IS DOING 13:19:54 THIS WORK. I JUST CAN'T UNDERSTAND WHY 13:19:58 YOU'RE SO ABSOLUTELY CERTAIN -- YOU SAY YOU'RE EVEN MORE CERTAIN 13:20:01 NOW THAN YOU WERE THEN BUT YOU HAVE EXPONENT'S REPORT. 13:20:06 YOU WILL HAVE IT PEER REVIEWED. WHY ARE YOU BOTHERING TO DO IT 13:20:09 IF YOU'RE CONVINCED BASED ON THE OTHER WORK YOU'RE DOING? 13:20:12 WE WANT TO ENSURE THE PUBLIC AND OUR CUSTOMERS THAT THEY HAVE 13:20:17 THE CONFIDENCE THAT THIS HAS BEEN REVIEWED INDEPENDENTLY, 13:20:22 SCIENTIFICALLY, PEER REVIEWED EVEN HAVING SECRETARY SLATER 13:20:30 REVIEW THE PROCESS. FORMER SECRETARY SLATER. 13:20:32 YES, I'M SORRY. WELL, WE HEARD FROM THE HEAD 13:20:35 OF NHTSA, MR. STRICKLAND. HE DOESN'T FEEL HE CAN RELY ON 13:20:43 WHAT HE KNOWS OF EXPONENT'S WORK. 13:20:45 EXPONENT SEEMS TO BE WORKING FOR THE LAWYERS. 13:20:52 EVERYTHING THAT THEY HAVE SHOWN US BY WAY OF DOCUMENTS GIVES US 13:20:56 NO SENSE THAT THEY HAVE COME TO ANY CONCLUSION. 13:20:58 IN FACT, WE HAVE NO SENSE THEY ARE LOOKING AT THE ISSUE BECAUSE 13:21:03 THEY DON'T EVEN HAVE IT ON THE LIST OF THINGS THAT THEY ARE 13:21:08 EVALUATING. IF EXPONENT IS DOING THE JOB YOU 13:21:10 DESCRIBE IN YOUR TESTIMONY PROVIDING A COMPREHENSIVE 13:21:14 ASSESSMENT IT PRESUMABLY WOULD BE UNDERTAKING A COMPLICATED 13:21:18 MULTI DISCIPLINARY INVESTIGATION INVOLVING NUMEROUS ROUNDS OF 13:21:22 TESTING AND ANALYSIS. BUT DR. SUREY TOLD THE STAFF AT 13:21:29 ANY TIME 10 TO 25 PEOPLE COULD BE WORKING ON THE TOYOTA PROJECT 13:21:33 AND THERE IS NO WRITTEN COMMUNICATION AMONG THESE 13:21:37 PEOPLE. THERE IS NOTHING BY WAY OF 13:21:39 WRITTEN NOTES. SCIENCE IS WHAT WE NEED TO HAVE 13:21:44 EVALUATED. SO JUST RAISE THAT ISSUE. 13:21:47 I STILL AM NOT SATISFIED BECAUSE YOU'RE NOW RELYING ON SOMETHING 13:21:52 OTHER THAN EXPONENT TO GIVE YOU THAT CERTAINTY. 13:21:55 I WANT TO ASK YOU A DIFFERENT QUESTION BEFORE MY TIME IS UP. 13:21:58 THAT'S THIS QUESTION OF THE BRAKE OVERRIDE. 13:22:00 WHY ARE YOU DOING A BRAKE OVERRIDE? 13:22:05 WHAT'S THE PURPOSE? TO HELP WITH ADDED CONSUMER 13:22:07 CONFIDENCE ON OUR PRODUCTS. IS IT FOR SAFETY? 13:22:11 I THINK FOR SOME PEOPLE IT COULD BE SAFETY. 13:22:14 I CAN'T SPEAK FOR ALL THE CONSUMERS TO SAY 100% OF THE 13:22:18 CONSUMERS WILL SEE IT -- NOT HOW THEY SEE IT. 13:22:21 I DON'T CARE HOW THEY SEE IT. WILL IT MAKE CARS SAFER? 13:22:25 THERE ARE OTHER REDUNDANCIES WITHIN A CAR TODAY THAT WILL 13:22:29 MAKE THAT CAR STOP. TODAY, EVEN AT FULL THROTTLE, 13:22:33 FULL BRAKE PRESSURE -- SO YOU DON'T THINK THERE IS A 13:22:35 SAFETY NEED FOR IT. I BELIEVE THERE IS. 13:22:38 OTHERWISE WE WOULDN'T BE PUTTING IT ON FUTURE MODELS BUT IT ADDS 13:22:43 FUTURE -- IT SEEMS YOU'RE SAYING IT 13:22:46 WILL MAKE PEOPLE FEEL BETTER. THAT'S CONSUMER CONFIDENCE. 13:22:50 BUT ARE YOU WILLING TO SAY IT'S GOING TO MAKE THE CARS SAFER. 13:22:55 I CAN'T SAY 100% THAT IT NECESSARILY MAKES CARS SAFER. 13:23:01 THEY'RE DIFFERENT. IT'S JUST LIKE CARS. 13:23:03 IT COSTS AROUND $50 TO DO THIS. 13:23:07 BUT YOU'RE NOT DOING IT FOR ALL CARS. 13:23:10 YOU'RE RETRO-FITTING SOME CARS, BUT NOT OTHERS. 13:23:14 WHY ARE YOU MADE THAT DECISION? DON'T YOU FEEL THOSE DRIVING 13:23:18 LESS EXPENSIVE TOYOTAS SHOULD HAVE THAT SENSE THAT THEY HAVE A 13:23:23 BRAKE OVERRIDE THAT'S GOING TO PROTECT THEM? 13:23:25 IT'S NOT A QUESTION OF WHAT PEOPLE PAY FOR THEIR CARS. 13:23:30 WE STARTED WITH THE FOUR VEHICLES THAT HAD PUSH BUTTON 13:23:35 START -- ARE YOU GOING TO GET TO THE 13:23:37 OTHER VEHICLES? WE THEN WENT TO AN ADDITIONAL 13:23:40 THREE MODELS THAT WERE HIGH ON( LIST. 13:23:44 ARE YOU GOING TO GET TO ALL THE OTHER VEHICLES. 13:23:47 WE ARE NOT GOING TO GET TO ALL THE OTHER VEHICLES GOING 13:23:50 BACK. DO YOU HAVE A BRAKE OVERRIDE 13:23:52 IN YOUR CAR SP? I DRIVE A HYBRID THAT HAS THE 13:23:56 EQUIVALENT LEAPT OF IT. MY SON DOESN'T HAVE IT IN HIS 13:24:00 AND I DON'T FEEL THAT HE'S NOT SAFE. 13:24:02 WHAT IF I, AS A TOYOTA OWNER WANTED TO SPEND $50 AND GET IT 13:24:06 IN MY CAR? IF IT HASN'T BEEN DEVELOPED, 13:24:11 IT'S NOT DEVELOPED. IT'S DEVELOPED ENOUGH THAT 13:24:14 YOU ARE PUTTING IT IN MOST TOYOTAS. 13:24:16 IT'S UNIQUE TO EVERY VEHICLE. YOU WILL PUT IT IN ALL FUTURE 13:24:19 TOYOTAS. YES. 13:24:20 EACH AND EVERY VEHICLE FOR TOYOTA IN THE FUTURE AND YOU'RE 13:24:25 RETRO-FITTING FOR SOME BUT NOT ALL. 13:24:27 IT IS UNIQUE TO EVERY VEHICLE. 13:24:29 THE AMOUNT OF TIME IT WOULD TAKE TO DO IT IS JUST NOT -- 13:24:34 WITH ALL DUE RESPECT, I HEAR YOU SAYING YOU WANT PEOPLE TO 13:24:38 FEEL GOOD SO YOU TELL THEM EXPONENT SAID IT'S NOT THE 13:24:44 ELECTRONICS. I DON'T BELIEVE YOU CAN SAY 13:24:45 THAT. THAT WAS PAST TESTIMONY. 13:24:47 YOU'RE SAYING PEOPLE OUGHT TO FEEL GOOD ABOUT THE BRAKE 13:24:50 OVERRIDE BUT YOU'RE NOT WILLING TO SAY THAT'S REALLY FOR SAFETY. 13:24:55 I DON'T SEE THAT YOU ARE GIVING US ASSURANCES ON SAFETY. 13:24:58 IT SEEMS TO ME YOU'RE WORKING AROUND ATTITUDES. 13:25:02 THAT ATTITUDE YOU WANT TO DEVELOP IS PEOPLE SHOULD FEEL 13:25:05 GOOD ABOUT TOYOTA. I WANT PEOPLE TO FEEL GOOD ABOUT 13:25:13 SAFETY. IT IS AN EXTRAORDINARY 13:25:15 EFFORT. I DON'T KNOW OF ANOTHER 13:25:16 MANUFACTURER THAT'S GONE BACK TO RETRO-FIT VEHICLES WITH ANY TYPE 13:25:20 OF SAFETY LIKE THIS. EVEN TO DO THREE MILLION GOING 13:25:25 BACK ON THESE SEVEN MODELS IS AN EXTRAORDINARY EVIDENT FOR ANY 13:25:31 MANUFACTURER. MY TIME IS -- I DON'T WANT TO 13:25:33 INTERRUPT YOU. MY TIME IS MORE AN EXPIRED. 13:25:36 THANK YOU, MR. CHAIRMAN, FOR LETTING ME GO OVER. 13:25:38 AS YOU CAN TELL, I'M STILL NOT SATISFIED. 13:25:41 THANK YOU. MR. CHRISTENSEN FOR 13:25:45 QUESTIONS. THANK YOU, MR. CHAIRMAN. 13:25:51 IN A PRIOR HEARING I ASKED A QUESTION THAT ALL THE MAJOR 13:25:56 DECISIONS WERE BEING MADE IN TOYOTA JAPAN. 13:25:59 THERE SEEMED TO BE A DISCONNECT BETWEEN WHAT WAS HAPPENING WITH 13:26:03 TOYOTA MADE CARS IN DIFFERENT PARTS OF THE WORLD. 13:26:05 NO COMMUNICATION OF WHAT WAS HAPPENING IN EUROPE TOYOTA E.U. 13:26:11 AND TOYOTA U.S. FOR EXAMPLE. HOW WOULD HAVING A SPECIAL 13:26:16 COMMITTEE ON GLOBAL ECONOMY AND A CHIEF QUALITY OFFICER HAVE 13:26:19 MADE A DIFFERENCE IN F THOSE OFFICES EXISTED BACK THEN. 13:26:24 THE BIGGEST DIFFERENCE IS NOT ONLY DID WE HAVE A GLOBAL 13:26:29 QUALITY OFFICER BUT WE HAVE AN INDIVIDUAL WHO WAS RESPONSIBLE 13:26:34 FOR RECALLS IN THE UNITED STATES. 13:26:35 THE WORLD HAS BEEN DIVIDED UP INTO SIX DIFFERENT REGIONS. 13:26:41 EUROPE HAS A REPRESENTATIVE. CHINA HAS A REPRESENTATIVE. 13:26:43 THE U.S. HAS AP REPRESENTATIVE. THEY WILL SHARE IN ALL THE 13:26:48 INFORMATION AND DATA THAT'S GOING ON A GLOBAL BASIS. 13:26:51 THAT DIDN'T HAPPEN BEFORE. THAT DID NOT HAPPEN BEFORE. 13:26:55 THE DECISIONS WERE MADE IN JAPAN AND COMMUNICATED TO US. 13:27:00 NOW THAT INFORMATION WILL BE VISIBLE TO THIS INDIVIDUAL. 13:27:04 THIS INDIVIDUAL WILL WORK WITH ONE OTHER PERSON IN JAPAN TO 13:27:07 MAKE THAT DECISION WHETHER OR NOT THERE IS A RECALL. 13:27:10 IF HE'S NOT SATISFIED, STEVE SAINT ANGELO HAS THE ABILITY TO 13:27:15 GO TO AKIO TOYODA AND DISCUSS THE SITUATION. 13:27:22 NOT ONLY DO WE HAVE INPUT BUT WE CAN GO TO THE PRESIDENT OF THE 13:27:24 COMPANY IF WE ARE NOT SATISFIED WITH WHAT THE DECISION IS. 13:27:27 THAT'S VERY, VERY DIFFERENT THAN BEFORE. 13:27:31 OKAY. YOU HAVE THE NORTH AMERICA 13:27:33 QUALITY ADVISORY PANEL. THEY ARE APPOINTED AND PAID BY 13:27:40 TOYOTA? YES. 13:27:42 MR. SLATER WAS INITIALLY SUGGESTED BY TOYOTA AND HE 13:27:50 BASICALLY HAND-PICKED THE REPRESENTATIVES ON THE 13:27:52 COMMITTEE. SO OTHER THAN RELYING ON THE 13:27:55 HIGH RESPECT THAT WE HAVE FOR THE STEWARTSHIP AND INTEGRITY OF 13:28:02 RODNEY SLATER WHO MAY NOT ALWAYS BE -- FOR ANY NUMBER OF REASONS, 13:28:08 HOW DO WE ENSURE THAT THERE IS ADEQUATE INDEPENDENCE IN THIS 13:28:11 ADVISORY PANEL? YOU KNOW, I THINK YOU HAVE TO 13:28:13 LOOK AT THE RESULTS OF WHAT HAPPENS OVER THE NEXT FEW YEARS. 13:28:19 WE ARE CONFIDENT THAT NOT ONLY MR. SLATER BUT THE ADDITIONAL 13:28:23 MEMBERS OF HIS PANEL, THEY HAVE ALREADY SPENT TIME WITH OUR 13:28:27 PEOPLE. THEY HAVE ALREADY SPENT TIME 13:28:29 WITH EXPONENT. THEY SEEM TO BE VERY, VERY 13:28:35 I INDEPENDENT. 13:28:37 VERY, VERY UP FRONT AND ARE ASKING TREMENDOUS QUESTIONS. 13:28:40 I THINK THEY WILL ADD TREMENDOUS VALUE TO OUR OVERALL 13:28:44 ORGANIZATION. MY LAST QUESTION, INITIATIVES 13:28:49 SUCH AS SMART HAPPENING IN THE TERRITORIES AND THE STATES, WE 13:28:53 HAVE A BIG TOYOTA MARKET IN THE VIRGIN ISLANDS. 13:28:56 I CAN'T TELL YOU SPECIFICALLY MANY THE VIRGIN ISLANDS, OUR 13:28:59 SMART TEAM HAS NOT BEEN REQUESTED TO GO, BUT AFTER YOUR 13:29:03 COMMENTS TODAY I WILL MAKE SURE JAPAN UNDERSTANDS IF THEY NEED 13:29:09 TECHNICAL EXPERTISE I KNOW ON THE ENGINEERING SIDE THAT THEY 13:29:15 COVER THE CARIBBEAN. OUR SMART TEAM DOES NOT OUTSIDE 13:29:20 OF PUERTO RICO UNDER TMS CONTROL. 13:29:23 PUERTO RICO COVERS THE U.S. VIRGIN ISLANDS. 13:29:25 THANK YOU. THANK YOU. 13:29:27 MR. BRALEY FOR QUESTIONS. THANK YOU. 13:29:30 WELCOME BACK. THANK YOU. 13:29:32 WE'LL EXPLORE IN MORE DETAIL TOYOTA'S RELATIONSHIP WITH 13:29:38 EXPONENT. WHEN YOU APPEARED ON SEPTEMBER 13:29:42 23, 2010 YOU SUBMITTED A WRITTEN STATEMENT. 13:29:44 YES. ON PAGE TWO YOU SAID WE ASKED 13:29:52 EXPONENT A WORLD CLASS CONSULTING FIRM TO CONDUCT A 13:29:56 COMPREHENSIVE INDEPENDENT ANALYSIS OF THE ELECTRONIC 13:29:59 THROTTLE CONTROL SYSTEM WITH AN UNLIMITED BUDGET. 13:30:02 DO YOU RECALL MAKING THAT STATEMENT. 13:30:06 YES, SIR. AT THE CONCLUSION I REQUESTED 13:30:07 A COPY OF ANY DOCUMENTS THAT WOULD VERIFY THE NATURE OF THE 13:30:12 RELATIONSHIP BETWEEN TOYOTA AND EXPONENT. 13:30:14 IN RESPONSE TO THAT REQUEST WE RECEIVED FROM YOUR ATTORNEYS 13:30:18 KING AND SPALDING A COPY OF A DOCUMENT LISTED AS ATTACHMENT A 13:30:23 WHICH WE'LL PUT ON THE SCREEN AND WHICH YOU HAVE IN FRONT OF 13:30:28 YOU. THIS IS AN AGREEMENT DATED 13:30:29 DECEMBER 7, 2009, BETWEEN JOEL SMITH AT BOWMAN AND BROOK LAW 13:30:36 FIRM IN SOUTH CAROLINA WITH EXPONENT. 13:30:38 WOULD YOU AGREE WITH THAT? YES. 13:30:40 AND UNDER THE TERM "SUBJECT" IT SAYS TOYOTA CLASS ACTIONS. 13:30:49 DO YOU SEE THAT? YES. 13:30:51 A CLASS ACTION IS A GROUP OF CLAIMS AGAINST A MANUFACTURER 13:30:54 THAT HAVE BEEN ACCUMULATED FOR THE PURPOSE OF PURSUING RELIEF. 13:30:58 DID I STATE THAT CORRECTLY? YES. 13:31:02 AND IN THE FIRST PARAGRAPH, IT SAYS DEAR JOEL AND IT 13:31:07 OUTLINES THE SCOPE OF SERVICES UNDER THE AGREEMENT. 13:31:10 IT SAYS OUR SCOPE OF SERVICES IS ANTICIPATED TO INCLUT 13:31:16 ENGINEERING SERVICES RELATED TO CLASS ACTIONS FILED AGAINST 13:31:21 TOYOTA. DO YOU SEE THAT? 13:31:23 YES. YOU WOULD AGREE CLASS ACTIONS 13:31:25 AGAINST TOYOTA ARE SEPARATE AND DISTINCT FROM AN INDEPENDENT 13:31:28 ANALYSIS OF WHAT'S CAUSING THIS PROBLEM? 13:31:30 I UNDERSTAND THAT. I CAN TELL YOU THAT -- 13:31:33 LET ME GO ON TO THE REST OF THIS LETTER. 13:31:37 DOWN IN PARAGRAPH THREE IT SAYS -- AND THIS IS AN AGREEMENT 13:31:42 BETWEEN BOWMAN AND BROOK, A LAW FIRM IN CALIFORNIA AND EXPOEPT. 13:31:46 IT SAYS IT IS OUR UNDERSTANDING THAT EXPONENT'S RETENTION ON 13:31:50 THIS PROJECT IS SOLELY WITH YOUR ORGANIZATION AND THE 13:31:55 ORGANIZATION THAT EXPONENT IS REFERRING TO IS THE LAW FIRM OF 13:31:58 BOWMAN AND BROOKE. YOU WOULD AGREE WITH THAT? 13:32:01 YES. IT SAYS ALL CHARGES INCURRED 13:32:04 BY EXPOEPT ON THIS PROJECT AND THAT'S THE TOYOTA CLASS ACTION 13:32:08 PROJECT WILL BE THE RESPONSIBILITY OF BOWMAN & 13:32:12 BROOKE, INDEPENDENT OF OTHER PARTIES INVOLVED. 13:32:14 DO YOU SEE THAT? YES. 13:32:16 IT'S CLEAR WHEN EXPONENT WAS FIRST RETAINED THEY ENTERED INTO 13:32:21 AN AGREEMENT WITH A LAW FIRM IN SOUTH CAROLINA, NOT JUST WITH 13:32:24 TOYOTA DIRECTLY AND THE SUBJECT OF THE AGREEMENT WAS TO 13:32:29 INVESTIGATE CLASS ACTION CLAIMS AGAINST TOYOTA. 13:32:33 WE HEARD FROM ADMINISTRATOR STRICKLAND AND HE PUT THIS IN 13:32:37 PERSPECTIVE WHEN HE SAID THERE IS PREPARATION FOR LITIGATION 13:32:41 AND THERE IS SCIENTIFIC ANALYSIS SKISING OF A DETAILED ANALYSIS 13:32:45 OF THE CAUSE OF A PROBLEM AND c ELIMINATING IT. 13:32:49 YOU WOULD AGREE THERE IS A DISTINCTION? 13:32:51 I DON'T KNOW THAT FOR CERTAIN. 13:32:52 LET'S LOOK AT IT. WE ALSO RECEIVED AN ATTACHMENT 13:32:55 D, A SUMMARY OF WHAT EXPONENT HAD BEEN PAID BY TOYOTA OVER THE 13:33:00 YEARS AND IT SAYS THAT BETWEEN 2000 AND 2008 TOYOTA PAID 13:33:07 EXPONENT ABOUT 11 MILLION DOLLARS FOR CONSULTING SERVICES 13:33:10 AND DURING THE PERIOD BETWEEN 2004 AND 2009 IT WAS 9.1 MILLION 13:33:16 DOLLARS. THERE IS A STATEMENT HERE. 13:33:20 EXPONENT BELIEVES THE RESULT OF THE SEARCH PROVIDES A REASONABLE 13:33:26 GROSS REVENUES FROM TOYOTA BUT THEY KNOW IF THE AGREEMENT 13:33:29 DOESN'T REFER TO TOYOTA BY NAME IT MAY SHOW UP IN THE REVENUES. 13:33:33 IT'S CLEAR THAT TOYOTA PAID A SUBSTANTIAL AMOUNT OF MONEY TO 13:33:38 EXPONENT. MY QUESTION IS HOW CAN YOU CLAIM 13:33:42 THAT EXPONENT WAS RETAINED BY TOYOTA TO CONDUCT AN INDEPENDENT 13:33:48 INVESTIGATION WHEN THIS AGREEMENT WE HAVE BEEN PROVIDED 13:33:51 WITH MAKES IT CLEAR THAT THEY WERE RETAINED BY THE DEFENSE LAW 13:33:55 FIRM AND IT WAS FOR CONTESTED LITIGATION WHICH IS IN NO WAY 13:33:58 CONSIDERED AN INDEPENDENT ANALYSIS. 13:34:00 THAT IS HOW THE RELATIONSHIP BEGAN. 13:34:03 BUT AS THIS HAS EVOLVED -- WELL, AS OF THIS WEEK BEFORE 13:34:08 YOU CAME HERE YOU TESTIFIED THAT THEY WERE REPORTING THROUGH 13:34:15 PRODUCT LIABILITY ATTORNEYS THAT IT CHANGED THIS WEEK. 13:34:17 CORRECT. WE ALSO ASKED QUESTIONS FROM 13:34:19 TOYOTA AND RECEIVED RESPONSES. I WANT THOSE PUT UP ON THE 13:34:24 SCREEN. QUESTION AND REQUEST NUMBER 15. 13:34:26 IT SAYS THE OVERALL AMOUNT EXPONENT BILLED FOR WORK RELATED 13:34:31 TO TOYOTA SINCE E EXPONENT WAS RETAINED IN 2009 THE ANSWER THE 13:34:35 COMMITTEE RECEIVED WAS EXPONENT BILLED $3,330,552.36. 13:34:44 SO YOU INDICATED IN YOUR WRITTEN STATEMENT TODAY THAT EXPONENT 13:34:48 HAS ALREADY COMPLETED MORE THAN 11,000 HOURS OF TESTING AND 13:34:52 ANALYSIS. THAT MEANS THAT AT 11,000 HOURS 13:34:55 THAT THEY ARE BILLING ABOUT $302 AN HOUR FOR THIS INCREDIBLE 13:35:00 AMOUNT OF WORK THAT THEY HAVE DONE ON THE PROJECT. 13:35:02 I DON'T KNOW. I DON'T KNOW WHAT THE SPECIFIC 13:35:05 CONTRACT IS. ALL I CAN SAY IS I UNDERSTAND 13:35:12 THE PERCEPTION THAT THIS IS NOT A TRANSPARENT PROCESS. 13:35:15 YOU HAVE PROVIDED IN YOUR WRITTEN STATEMENT TODAY WITH THE 13:35:18 LETTER TO MR. SABAI WHO YOU HAVE INDICATED WILL BE COMMUNICATING 13:35:24 DIRECTLY WITH MR. SAINT ANGELO AND WHEN TOYOTA'S COUNSEL TALKED 13:35:28 TO COMMITTEE STAFF YESTERDAY THEY SAID THE LETTER TO EXPONENT 13:35:31 THAT YOU PROVIDED WITH YOUR ATTACHMENT DOES NOT CHANGE 13:35:36 EXPONENT'S CONTRACTUAL RELATIONSHIP WITH BOWMAN & 13:35:40 BROOKE. NOT YET. 13:35:41 IS IT YOUR UNDERSTANDING THAT IT WILL. 13:35:44 I DON'T KNOW THAT FOR A FACT. WILL YOU COMMIT TO THE 13:35:46 COMMITTEE TODAY THAT IF IT DOES YOU WILL PROVIDE US WITH ANY 13:35:50 DOCUMENTS THAT CHANGE THE RELATIONSHIP BETWEEN EXPONENT 13:35:53 AND BOWMAN & BROOKE OR TOYOTA AND ANY OF ITS VARIOUS ENTITIES 13:35:59 RELATED TO THE PROJECT THAT WE HAVE BEEN TALKING ABOUT DURING 13:36:01 THE TWO HEARINGS? ABSOLUTELY. 13:36:03 I SEE MY TIME IS EXPIRED. I WILL YIELD. 13:36:07 THANK YOU. WE WANTED TO GO ANOTHER ROUND OF 13:36:10 QUESTIONS BUT WE HAVE FOUR VOTES ON THE FLOOR, PLUS THE COMMITTEE 13:36:15 MARK-UP ON THE BILL ON THE NHTSA BILL AT 2:00. 13:36:21 WE'RE GOING TO CUT IT SHORT. BEFORE I GO, I WANTED TO GET 13:36:25 INTO QUESTIONS ABOUT THE POLLING BUT I CAN DO THAT IN WRITING. 13:36:29 I'LL FOLLOW THESE UP, BUT LAST TIME YOU WERE HERE IN FEBRUARY I 13:36:34 ASKED YOU ABOUT A LOT OF DISCUSSIONS ABOUT THE EVENT DATA 13:36:39 RECORDERS. YES. 13:36:40 WE RECEIVED NO INFORMATION YET OTHER THAN YOU PROVIDED 13:36:45 SOME. BUT I HAD ASKED, MR. RUSH AND 13:36:50 OTHERS ASKED SPECIFICALLY ABOUT THE NOVEMBER 27, 2009 ACCIDENT 13:36:54 INVOLVING A 2010 CAMRY IN AUBURN, NEW YORK. 13:36:57 I ASKED ABOUT DECEMBER 26, 2009 ACCIDENT IN SOUTH LAKE, TEXAS, 13:37:02 INVOLVING A 2008 TOYOTA AVALON. I ASKED ABOUT JEFF PEPSKI OF 13:37:09 MINNESOTA, 2007 LEXUS ES 350 ABOUT THEIR BLACK BOX RECORDER. 13:37:14 I ALSO ASKED AND QUESTIONED YOU ON THE FEBRUARY 20th, 2010 13:37:21 WASHINGTON POST ARTICLE ON THE CAMRY'S 2005. 13:37:25 IN FACT, THREE FATAL ACCIDENTS IN THE COURSE OF 2005. 13:37:29 CAMRY IS NOT SUBJECT TO ANY SUDDEN UNINTENDED ACCELERATION 13:37:34 THOUGH THE THREE FATAL ACCIDENTS DID. 13:37:37 WE ARE LOOKING FOR INFORMATION ON THE BLACK BOX RECORDERS. 13:37:40 I WILL FOLLOW UP IN WRITING. THAT AND OTHER QUESTIONS I HAVE. 13:37:43 I APOLOGIZE IF WE HAVEN'T SUBMITTED THAT TO YOU. 13:37:46 I CAN TELL YOU THAT THE BLACK BOX RECORDERS, WE HAVE LIVED UP 13:37:51 TO OUR COMMITMENT THAT WE HAVE 150 OF THE DEVICES, THE DATA 13:37:56 RETRIEVAL DEVICES IN THE MARKETPLACE. 13:38:01 I CAN ALSO TELL YOU -- CORRECT. 13:38:02 WE WANT TO KNOW WHAT THEY SAY. YEAH. 13:38:05 I CAN TELL YOU THEY WILL BE MADE COMMERCIALLY AVAILABLE BY ABOUT 13:38:08 SEPTEMBER OF 2011 TO MAKE IT MUCH MORE READILY AVAILABLE FOR 13:38:12 POLICE ACROSS THE UNITED STATES. AND CONSUMERS I HOPE. 13:38:15 CONSUMERS WILL HAVE ACCESS. THAT WILL BE PART OF THE BILL 13:38:19 TODAY. WE'LL FOLLOW UP. 13:38:23 QUICKLY, SIR. BEFORE YOU CLOSE, I WOULD ASK 13:38:25 THAT THE RESPONSE FROM KING AND SPALDING THAT WE RECEIVED ARE W 13:38:29 ALL THE RELEVANT ATTACHMENTS AND THE E-MAIL WE HAD ON THE SCREEN 13:38:35 DATED WEDNESDAY, MAY 19 WITH BE INCLUDED. ESTIONS 15 AND 16 13:38:39 NO PROBLEM AS LONG AS WE HAVE REDACTIONS ON SOME OF THE NAMES. 13:38:43 THAT WOULD BE THE ONLY THING I HAVE TO INSIST UPON. 13:38:45 OTHER THAN THAT, I HAVE NO OBJECTION. 13:38:48 DO YOU HAVE ANY OBJECTION AS LONG AS WE REDACT THE NAMES? 13:38:51 I HAVE A QUESTION FOR THE CHAIRMAN WHY WE WOULD REDACT 13:38:55 NAMES PROVIDED IN RESPONSE TO AN OFFICIAL REQUEST. 13:38:59 THAT'S THE POLICY IF THEY ARE NOT SUBJECT TO IT THE NAMES OF 13:39:02 THOSE ENGINEERS BY EXPONENT, THEIR NAMES DON'T NEED TO BE IN 13:39:05 THE PUBLIC RECORD. THE ONLY EXCEPTION I WOULD 13:39:09 REQUEST, MR. CHAIRMAN, IS THERE ARE PEOPLE -- MR. SABAI IS 13:39:14 LISTED AS THE FIRST PERSON IN THE INTEREST. 13:39:16 HE'S BEEN THE SUBJECT OF THE DISCUSSION AT THE HEARING AND 13:39:18 THERE IS NO QUESTION BASED ON THE LETTER THAT THE WITNESS HAS 13:39:23 PROVIDED THAT HIS NAME BE LEFT. CORRECT. 13:39:27 WITHOUT OBJECTION. SO THAT WILL BE INCLUDED WITH 13:39:30 THE REDACTIONS OF PROFESSIONAL ENGINEERS NOT SUBJECT TO OR 13:39:34 SIGNING THAT LETTER. THAT CONCLUDES -- 13:39:37 MR. CHAIRMAN, JUST ONE OBSERVATION SINCE EVERYONE ELSE 13:39:41 HAS GONE OVER. ALL RIGHT. 13:39:42 YOU'RE GOING TO A MARK-UP. I AM NO LONGER ON THE 13:39:48 SUBCOMMITTEE, BUT YOU'RE GOING TO MARK UP LEGISLATION BUT WE 13:39:51 HAVEN'T FINISHED OUR WORK HERE THAT IS SUPPOSED TO INFLUENCE 13:39:56 LEGISLATION BEING MARKED UP THIS AFTERNOON. 13:39:59 THERE ARE HUGE HOLE THAT IS NEED TO BE FILLED WITH THE NEED TO 13:40:03 GET THIS DONE -- THE LEGISLATION WE ARE 13:40:06 MARKING UP DOESN'T JUST INCLUDE THE SUBJECT OF THIS HEARING. 13:40:09 THERE ARE ALSO OTHERS. THERE HAVE BEEN HEARINGS ON THE 13:40:14 LEGISLATION THAT WITNESSES HAVE TESTIFIED. 13:40:16 I KNOW YOU'RE NOT ON THE SUBCOMMITTEE. 13:40:18 WE DO THIS TIME AND AGAIN. I'M RECLAIMING MY TIME. 13:40:21 YOU DON'T HAVE ANY TIME. WE DID IT WITH CLEAN WATER 13:40:25 AND WE ARE DOING IT THIS AFTERNOON. 13:40:26 IT SEEM IT IS COMMITTEE SHOULD TAKE THINGS IN A METHODICAL WAY 13:40:30 AND NOT BE DOING THINGS IN A HAPHAZARD ARRANGEMENT THAT SEEMS 13:40:35 TO BE SO PREVALENT IN THE COMMITTEE. 13:40:37 THANK YOU. I WILL YIELD BACK. 13:40:39 YOU WILL HAVE A CHANCE TO VOICE THOSE OBJECTIONS WHEN IT 13:40:42 COMES TO FULL COMMITTEE. AS YOU KNOW WHEN IT GOES TO THE 13:40:45 SUBCOMMITTEE LEVEL IT MUST COME TO THE FULL COMMITTEE. 13:40:50 YOU WILL HAVE A CHANCE THEN. THAT CONCLUDES ALL QUESTIONING. 13:40:53 I WANT TO THANK OUR WITNESSES FOR COMING TODAY AND YOUR 13:40:56 TESTIMONY. THE COMMITTEE RULES PROVIDE 13:40:57 MEMBERS HAVE TEN DAYS TO SUBMIT QUESTIONS FOR THE RECORD. 13:41:02 I ASK THAT THE CONTENTS BE ENTERED INTO THE RECORD PROVIDED 13:41:06 THAT THE STAFF MAY REDACT AS IT RELATES TO PRIVACY CONCERNS. 13:41:13 THE DOCUMENTS WILL BE ENTERED IN THE RECORDS. 13:41:16 LET ME ACKNOWLEDGE TWO KEY STAFF PERSONS, ALAN TINDALE AND KAREN 13:41:22 CHRISTENSEN OF THE REPUBLICAN STAFF. 13:41:25 BOTH WOMEN ARE EXPECTING A CHILD SOON. 13:41:27 WE APPRECIATE THEIR WORK ON THIS HEARING AND PREVIOUS HEARINGS 13:41:30 FOR THE COMMITTEE AND OUR SUBCOMMITTEE. 13:41:32 WE WISH THEM WELL IN THE COMING DAYS AND WEEKS AHEAD AS THEY 13:41:36 TRANSITION FROM WORK EXHAUSTION TO CHILDBIRTH EXHAUSTION. 13:41:40 THAT WILL CONCLUDE OUR HEARING. THIS MEETING IS ADJOURNED.

A mechanical hold Examine car disk brake pad wear

NAME: US TOYOTA 20100218I TAPE: EF10/0155 IN_TIME: 10:02:56:02 DURATION: 00:02:46:11 SOURCES: AP TELEVISION DATELINE: Various, 17 Feb 2010 RESTRICTIONS: SHOTLIST: Arlington, Texas 1. Wide shot of Toyota dealership 2. Mid shot of Corollas on dealer lot, pan to Toyota sign 3. Tracking shot of Corollas on lot 4. Wide of parked Corollas 5. Close up of Toyota hood sign 6. Woman driving an older model Corolla pulls out of parking spot 7. SOUNDBITE: (English) Patti Brown, Corolla owner: "The last three cars I''ve owned were Toyotas, and I''ve been happy with every one of them, always felt very confident in their safety and the way they''re built, and I really am not concerned. I''m sure if there are any problems, ongoing problems, with, the manufacturer will be very responsive, take care of those issues, and I have no hesitation at all. I''d go out an buy another Toyota Corolla today." 7. Pan of parked Corolla in rental car parking lot 8. Pan of Corolla trunk/boot 9. SOUNDBITE: (English) Rich Reitano, businessman: "Their ( Hertz rental car company) computer system is down or something, so there is a bunch of us, and we''re all laughing going, ''Anything but a Toyota, right? Don''t give us a Toyota. We don''t want to take a chance.'' But they give you the flyer in the car that says everything is fine." 10. Mid shot of Hertz flyer 11. SOUNDBITE: (English) Rich Reitano, businessman: "But we were in such a hurry, we went ahead and rented it, but if I had more time, it didn''t feel too safe." 12. Toyota sign Washington DC 13. SOUNDBITE: (English) Joan Claybrook, former administrator of the National Highway Traffic Safety Administration (NHTSA): "Well, I think that the basic responsibility of course is with the manufacturer of the vehicle, and they make the profit on the car, they sell it to the public. They have a responsibility to make sure the car is safe. So, I believe that''s where the basic responsibility is, but the regulator, the Department of Transportation is the cop on the beat. And that cop should be doing the job and finding out what''s going on." 14. Wide of Claybrook seated in chair 15. SOUNDBITE: (English) Joan Claybrook, former administrator of the National Highway Traffic Safety Administration (NHTSA): "Well I think that the president of Toyota should come and testify in Capitol Hill. This is the largest market for the company. It''s a huge disaster that they''ve got a public relations disaster. The public has lost trust. The company has lost credibility. One of the ways to re-establish that is to come and speak personally. He went to school in the United States. He speaks English. He could have a translator if he needed, and I think that it''s really important not to just say you''re sorry but to come and explain what the issues are what you''re going to do in the future." Arlington, Texas 16. Tracking shot of Corollas on lot STORYLINE: Toyota and the United States government were looking into complaints on Wednesday that the popular Corolla is difficult to steer straight, raising a new safety concern ahead of next week''s congressional hearing about the automakers recalls. The executive in charge of quality control said the company is reviewing fewer than 100 complaints about power steering in the Corolla. Toyota sold nearly 1.3 (m) million Corollas worldwide last year, including nearly 300-thousand in the United States, where it trailed only Camry as Toyota''s most popular model. Toyota''s executive in charge of quality control, Shinichi Sasaki, said drivers may feel as though they are losing control over the steering, but it was unclear why. He mentioned problems with the braking system or tires as possible underlying causes. US officials are also investigating. He stressed that the company was prepared to fix any defects it finds and that executives were considering a recall as an option, although no decision had been made. In Japan, President Akio Toyoda said he did not intend to appear at congressional hearings next week in Washington, preferring to leave that to his US -based executives while he focuses on improving quality controls. Toyoda, grandson of the company''s founder, said he would consider attending if invited. A former administrator of the National Highway Traffic Safety Administration Joan Claybrook said Toyota''s president should testify in Washington to try and re-establish trust among American consumers. "This is the largest market for the company. It''s a huge disaster that they''ve got a public relations disaster. The public has lost trust. The company has lost credibility," said Claybrook. "One of the ways to re-establish that is to come and speak personally." Claybrook is also scheduled to testify. Also on Wednesday, a Transportation Department official said the agency planned to open an investigation into the reports about the Corolla. The preliminary investigation is expected to begin on Thursday and involve an estimated 500-thousand vehicles. The official spoke on condition of anonymity because the department had not yet notified Toyota of the probe. In an attempt to reassure car owners, Toyota Motor Corp. said it would install a backup safety system in all future models worldwide that will override the accelerator if the gas and brake pedals are pressed at the same time. Acceleration problems are behind the bulk of the 8.5 (m) million vehicles recalled by the automaker since November. The emergence of potential steering problems with Corolla presented another roadblock in the automaker''s efforts to repair its image of building safe, reliable vehicles. In Washington, the House Oversight and Government Reform Committee asked several auto insurance companies for information on whether they reported incidents of sudden acceleration in Toyota vehicles to the NHTSA. Meanwhile, the House Energy and Commerce Committee moved its scheduled hearing up to February 23, one day ahead of the Oversight Committee meeting. A Senate hearing is planned for March 2. Toyota is expected to send North America chief executive Yoshi Inaba to the hearings. Toyoda does plan a U.S. visit, mainly to speak with American workers and dealers, but he said details of his trip are not yet final. The executives will face scrutiny in the U.S., where the Transportation Department has demanded documents related to its recalls. The department wants to know how long the automaker knew of safety defects before taking action. Reports of deaths in the U.S. connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the alleged death toll reaching 34

Auto repair shop concept of 4k Resolution. A mechanic is removing a car wheel in a garage.

Closeup shot repairing a vehicle break.checking the suspension and the car system

The Senate Commerce Committee holds hearings on Toyota automobile recalls and the government's response. Those appearing are: Senator Kay Baily Hutchinson, Transportation Ray La Hood; David Strickland, National Highway Transportation Safety Administration; Clarence Ditlow, Executive Director of the Center for Auto Safety. Toyota officals: Mr. Shinichi Sasaki, Executive Vice President, Toyota Motor Corporation Mr. Takeshi Uchiyamada, Executive Vice President, Toyota Motor Corporation Mr. Yoshimi Inaba, President and Chief Executive Officer, Toyota Motor North America, Inc. 16:00:00 SENATOR GEORGE LEMIEUX >> IS THERE ANYBODY FROM TOYOTA WHO IS FAMILIAR 16:00:01 WITH THIS DOCUMENT WHO IS HERE TODAY? >> NOT FROM THREE OF US. 16:00:08 >> WELL, LET ME READ TO YOU, BECAUSE I'M REVIEWING THESE 16:00:11 DOCUMENTS, MR. CHAIRMAN, AS THEY'VE BEEN PRESENTED TO US. 16:00:14 THIS IS A SLIDE SHOW PRESENTATION ABOUT A NEW ERA FOR 16:00:19 TOYOTA AND TMA IN NORTH AMERICA. AND IT GOES THROUGH SEVERAL 16:00:23 ISSUES, INCLUDING SAFETY ISSUES. AND THERE ARE NOTATIONS IN THE 16:00:27 BACK HERE WHICH ARE NOTES TO THIS SLIDE PRESENTATION. 16:00:33 AND ON THE DOCUMENT THAT IS -- HAS AS ITS ENDING BATES NUMBER 16:00:39 25, THERE IS REFERENCE TO SLIDE NUMBER 25 AND IT SAYS THE 16:00:44 FOLLOWING. OUR ABILITY TO MANAGE THE TIDE 16:00:47 OF SAFETY INVESTIGATIONS RESTS LARGELY ON OUR ABILITY TO WORK 16:00:52 WELL WITH NHTSA. OVER THE LAST FEW YEARS, WE'VE 16:00:54 SEEN OUR RELATIONSHIP BEGIN TO SLIP SLIGHTLY WITH NHTSA. 16:00:57 THE REASONS ARE COMPLEX. THEY INCLUDE A COMBINATION OF 16:01:01 INCREASED RECALLS, MORE INVESTIGATION AND TOUGHER 16:01:06 NEGOTIATIONS BETWEEN TOYOTA AND THE AGENCY. 16:01:09 NOT ALL OF THE RECALL INCREASE CAN BE BLAMED ON SLIPPING TOYOTA 16:01:15 QUALITY. AND IT GOES ON FROM THERE. 16:01:20 NONE OF YOU HAVE, I GUESS HAVE SEEN THIS DOCUMENT, BUT THIS IS 16:01:25 FROM THE PRESIDENT OF TOYOTA MOTORS NORTH AMERICA OR AT LEAST 16:01:30 IT CONTAINS INFORMATION THAT HE, I GUESS, PRESENTED. 16:01:35 AND I AM WORRIED ABOUT SOME OF THESE PHRASES ABOUT MANAGING THE 16:01:39 TIDE OF SAFETY INVESTIGATIONS. I AM CONCERNED ABOUT NOT ALL OF 16:01:43 THE RECALL INCREASE CAN BE BLAMED ON SLIPPING TOYOTA 16:01:48 QUALITY. AND TO THE POINT THAT WAS MADE 16:01:50 BEFORE, THIS LOOKS LIKE MORE OF AN EFFORT TO GET IN FRONT OF, IN 16:01:57 A PUBLIC RELATIONS WAY, A PROBLEM IN ORDER TO INSTILL 16:02:00 CONFIDENCE IN THE CONSUMER AND TO DEAL WITH THE GOVERNMENT 16:02:04 REGULATORY AGENCY THEN IT DOES TRYING TO SOLVE A PROBLEM. 16:02:09 AND FROM THE DOCUMENTS THAT I'VE REVIEWED, YOU'VE KNOWN ABOUT AN 16:02:14 ACCELERATION PROBLEM WHETHER IT'S BEEN CAUSED BY ELECTRONICS, 16:02:16 WHICH YOU DON'T BELIEVE IT HAS BEEN, OR WHETHER IT'S BEEN 16:02:19 CAUSED BY FLOOR MATS, WHICH I GUESS YOU BELIEVE IT DOES, AND 16:02:22 YOU'VE TAKEN MEASURES ON THAT. YOU'VE KNOWN ABOUT THIS PROBLEM 16:02:25 FOR SOME TIME. AND I HAVE A CONCERN THAT THE 16:02:27 EFFORTS THAT YOU TOOK IN THE PAST WERE NOT APPROPRIATE. 16:02:32 AND YOU DID NOT GO FAR ENOUGH IN THE YEARS PRIOR TO WHAT YOU ARE 16:02:36 DOING TODAY. DO YOU CARE TO COMMENT ON THAT 16:02:42 STATEMENT? [ SPEAKING JAPANESE ] 16:03:15 [ SPEAKING JAPANESE ] >> Translator: AROUND 2006, THE 16:03:56 NUMBER OF RECALLS IN NORTH AMERICA INCREASED AND WITH 16:04:00 REGARDS TO THIS, I DO NOT HAVE A -- ANY DATA ON ME PERSONALLY 16:04:05 RIGHT NOW. SO I WOULD LIKE TO SUBMIT TO THE 16:04:09 COMMITTEE LATER MORE ACCURATE NUMBERS. 16:04:12 IT IS CERTAINLY AN EMBARRASSING THING FOR AN AUTOMOTIVE 16:04:17 MANUFACTURER TO CREATE A -- OR PRODUCE A VEHICLE THAT HAVE TO 16:04:20 BE RECALLED LATER. HOWEVER, WHEN WE REALIZE THAT 16:04:24 RECALL IS NEEDED, THEN THAT -- THE WORK OF RECALL SHOULD BE 16:04:28 DONE PROPERLY. SO THIS MAY SOUND A LITTLE BIT 16:04:33 CONTRADICTORY OR COMPLEX OR A BIT STRANGE, BUT THE NUMBER OF 16:04:37 RECALLS -- RECALL WAS INCREASING AND THAT MEANT THAT ON THE ONE 16:04:41 HAND, WE WERE DOING OUR JOB PROPERLY. 16:04:57 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:05:45 [ SPEAKING JAPANESE ] >> Translator: WITH REGARDS TO 16:06:00 OUR RELATIONSHIP WITH NHTSA IT IS REALLY UNFORTUNATE THAT SOME 16:06:03 OF YOU MAY HAVE A CONCERN OR AS SOME PEOPLE MIGHT SUSPECT, IT 16:06:05 IS -- IT WAS UNHEALTHY. I WOULD LIKE TO CLARIFY A -- 16:06:10 CLEAR THAT GOING FORWARD AND BUILD A HEALTHY RELATIONSHIP 16:06:14 WITH NHTSA. IN THE PAST TEN YEARS, TOYOTA 16:06:18 HAS CONDUCTED, IN TOTAL, 66 VEHICLE RECALLS IN NORTH AMERICA 16:06:24 OF WHICH 57 WERE ON A VOLUNTARY BASIS. 16:06:28 IN OTHER WORDS, WE WERE NOT GIVEN ANY INSTRUCTION FROM NHTSA 16:06:33 TO DO THESE RECALLS. HOWEVER, WE DID DO THAT. 16:06:36 UNFORTUNATELY, THE REMAINING NINE CASES OUR RESPONSE WAS NOT 16:06:41 GOOD ENOUGH AND IT ENDED UP IN THE INSTRUCTED RECALL BY NHTSA. 16:06:47 BUT WE ARE NOT TRYING TO WORK ON THE RELATIONSHIP WITH NHTSA SO 16:06:50 THAT IF WE CAN PERSUADE THEM WE CAN AVOID RECALLS OR ANYTHING 16:06:57 LIKE THAT. AND OUR PAST RECORD TESTIFIES TO 16:07:00 THAT. AND THIS IS A PIECE OF 16:07:02 INFORMATION I WOULD LIKE YOU TO UNDERSTAND. 16:07:06 >> THANK YOU SENATOR. >> SENATOR LAUTENBERG. 16:07:19 >> I WANT TO ASK MR. INABA A QUESTION. 16:07:22 IT WAS A DOCUMENT ENTITLED 2009 AND DESCRIBED WHAT THE AUTHOR 16:07:26 CONSIDERED TO BE A WIN FOR TOYOTA. 16:07:29 ONE OF THESE WINS WERE TOYOTA'S SELF-DESCRIBED SAFETY GROUP WAS 16:07:39 $100 MILLION SAVING FROM AVOIDING THE SAFETY RECALL IN 16:07:45 2007. MR. INABE, YOUR NAME IS ON THE 16:07:48 COVER PAGE OF THE DOCUMENT. AND YOU HAVE STATED THAT IT IS A 16:07:53 PRESENTATION THAT WAS MADE TO YOU, THUS YOU ARE ENDORSING -- 16:07:58 YOU ARE ENDORSING? >> YES, SIR. 16:08:01 >> DID THIS PRESENTATION RAISE A RED FLAG THAT YOUR COMPANY WAS 16:08:07 PRIORITIZING PROFIT OVER SAFETY? >> IT HAS NEVER BEEN THE CASE, 16:08:12 AND IT WILL NEVER BE THE CASE. >> IT WAS DESCRIBED AS A WIN. 16:08:15 A WIN IS A VICTORY, OBVIOUSLY. >> LET ME ADDRESS. 16:08:26 SAFETY IS A VALIANT PRINCIPLE. I FOUND -- I REREAD THAT ONLY 16:08:32 RECENTLY AND THEN FOUND A LITTLE EMBARRASSING AND IT IS SO 16:08:38 INCONSISTENT WITH OUR GUIDING PRINCIPLE AND PERSONAL BELIEF. 16:08:42 THEREFORE, ALTHOUGH THEY TRY TO IMPRESS ME WITH BIGGER NUMBERS 16:08:46 OF MONEY THAT THEY SAID THEY SAVED, BUT I WOULD LIKE TO READ 16:08:52 IN MY POSITION TO RECTIFY IF THERE IS ANY ELEMENT OF THAT 16:08:55 THOUGHT IN OUR ORGANIZATION. >> IS ANYONE AT TOYOTA 16:09:03 RESPONSIBLE -- BEEN MADE RESPONSIBLE FOR THIS 16:09:08 PRESENTATION OR RELATED SAFETY LAPSES AT TOYOTA BEEN 16:09:17 REPRIMANDED FOR THEIR LAPSE? >> MAY I -- 16:09:36 >> OKAY, SORRY. I JUST WANTED TO UNDERSTAND YOUR 16:09:40 ENGLISH CORRECTLY. I HAVE TOLD THE WASHINGTON 16:09:43 OFFICE SINCE I FOUND IT LATER ON THAT THIS IS NOT OUR COMPANY, 16:09:47 SORT OF, POLICY. THE COST COMES FIRST THAN THE 16:09:58 SAFETY. I ADVISED THEM SAFETY COMES 16:10:00 FIRST. THIS IS THE TOP PRIORITY OF A 16:10:02 COMPANY. THAT'S ALL AND THERE'S NO -- 16:10:04 >> BUT THERE -- IT WAS NOT SUGGESTED THAT ANYBODY IN THE 16:10:09 COMPANY WAS RESPONSIBLE FOR -- YOU ARE AN ENGINEER AS I 16:10:14 REMEMBER OR ONE OF YOU IS AN ENGINEER. 16:10:18 IS IT POSSIBLE THAT THERE IS NO ASSIGNMENT OF RESPONSIBILITY FOR 16:10:25 THIS LAPSE? DIDN'T IT FALL ON SOME 16:10:28 DEPARTMENT OR SOME UNIT IN THE COMPANY THAT PERMITTED THIS TO 16:10:34 HAPPEN? >> MAY I ASK -- PERMITTED THIS 16:10:36 KIND OF PRESENTATION HAPPEN? IS THAT WHAT YOU -- 16:10:40 >> NO, THAT THE ACCELERATION HAPPENED. 16:10:44 THE SUDDEN ACCELERATION HAPPENED. 16:10:45 THAT THE ACCIDENTS HAPPENED. THAT THE INJURIES HAPPENED. 16:10:49 DOES IT SAY, LOOK, YOU, SO AND SO, YOUR DEPARTMENT, YOUR 16:10:58 RESPONSIBILITY, AND WE'RE DEADLY SERIOUS ABOUT THIS AT TOYOTA, 16:11:03 AND IF YOU MAKE THAT KIND OF MISTAKE, YOUR CAREER IS 16:11:07 ESSENTIALLY OVER OR WHATEVER -- HOWEVER YOU MANAGE. 16:11:12 >> OKAY. LET ME JUST ADDRESS THIS FIRST. 16:11:14 OF COURSE WE TAKE ANY ACCIDENT OR ESPECIALLY A FATAL ACCIDENT, 16:11:20 VERY SERIOUSLY. BUT THE SAME TIME, I DON'T 16:11:25 BELIEVE THERE IS ANY SORT OF RULE OR SYSTEM THAT WE WOULD 16:11:32 PUNISH ANY INDIVIDUALS WHEN IT HAPPENS, EVEN IF WE KNOW THE 16:11:38 ROOT CAUSE OF THAT. >> THE -- TOYOTA'S PROGRESS WAS 16:11:54 REMARKABLE. THEY WENT FROM 10% MARKET SHARE 16:11:57 IN 1999 TO 13% OF THE MARKET SHARE IN 2008. 16:12:05 GM FELL FROM 17% TO 12% IN THE SAME PERIOD OF TIME. 16:12:10 FORD FELL FROM 13% TO 8% IN THE SAME PERIOD OF TIME. 16:12:15 NOW WHAT I'M TRYING TO UNDERSTAND IS WHAT WAS -- WHY 16:12:19 WAS TOYOTA ABLE TO MOVE SO DEFTLY, SO QUICKLY, INTO THE 16:12:25 MARKET PLACE AND OVERCOME THE ESTABLISHED AUTO INDUSTRY THAT 16:12:30 EXISTED IN THIS COUNTRY? >> I AM FROM SALES AND 16:12:37 MARKETING, SO I HAVE TO RESPOND TO YOUR QUESTION. 16:12:44 WE BELIEVE THAT THE QUALITY OF THE VEHICLES ARE THE ONE THAT, 16:12:49 OVER YEARS, WE HAVE BEEN IN THIS COUNTRY 50 YEARS. 16:12:52 AND IT IS NOT SO MUCH A ONE INCIDENT OR ANYTHING, BUT SORT 16:12:58 OF CONTINUOUS SORT OF REASSURANCE TO THE CUSTOMER THAT 16:13:02 OUR PRODUCT IS RELIABLE AND SAFE AND DURABLE. 16:13:07 IS THE ONE THAT REALLY BROUGHT US UP TO HERE. 16:13:12 OF COURSE, WE ARE VERY EMBARRASSED. 16:13:14 WE ARE VERY TROUBLED BY THIS RECENT INCIDENT SO THAT WE WOULD 16:13:17 HAVE TO GO BACK TO BASICS TO REALLY REAFFIRM OUR CUSTOMERS 16:13:23 THAT OUR PRODUCT IS ONE OF THE SAFEST AND MOST RELIABLE. 16:13:27 AND THIS IS THE ONLY WAY. I MEAN, WE HAVE NOT SPENT ANY 16:13:31 MORE INCENTIVE THAN THE AVERAGE OR ANYTHING. 16:13:35 SO I THINK REALLY THIS BUILDING A TRUST AMONG THE CUSTOMERS IS A 16:13:40 KEY TO OUR PAST SUCCESS AND WE WILL LIKE TO CONTINUE DOING SO 16:13:44 INTO THE FUTURE. >> YOU KNOW, THERE'S AN 16:13:49 INSINUATION HERE BECAUSE YOU DESCRIBE $100 MILLION SAVINGS. 16:13:55 THAT'S EARNINGS BASICALLY, FROM AVOIDING A SAFETY RECALL IN 16:14:01 2007. NOW THAT DOESN'T SOUND LIKE 16:14:06 TOYOTA WAS SATISFIED WITH ITS IDENTIFICATION AS RELIABLE, 16:14:17 SAFE, YOUR WORD, THERE. BECAUSE IT LOOKED LIKE THERE WAS 16:14:21 A MOVE TO MAKE PROFITS BY MAYBE TAKING SHORTCUTS. 16:14:26 I MENTIONS THIS EARLIER. IT'S A LITTLE INCONSISTENT WITH 16:14:32 ALL DUE RESPECT, MR. INABA, THAT WHEN YOU TALK ABOUT MARKET 16:14:40 SHARE, GROWING AS IT WAS. AND I BELIEVE IN A COMPETITIVE 16:14:43 MARKET PLACE, BUT WHEN IT'S THAT DRASTIC AND INCLUDED IN THERE IS 16:14:50 100 MILLION BUCKS WE MADE BY NOT PAYING A FINE OR NOT DOING WHAT 16:14:57 WE SHOULD HAVE. >> FIRST OF ALL, AGAIN, COST IS 16:15:06 NOT AN ISSUE IN -- WHEN IT COMES TO RECALL OR SAFETY ISSUES. 16:15:12 AND IN JAPAN, WE DELIBERATELY SEPARATE IT FROM A RECALL 16:15:17 DECISION TO A MANAGEMENT DECISION. 16:15:19 AND, THEREFORE, IT IS DECIDED ON THE VERY LOWER LEVEL OF THE 16:15:25 MANAGEMENT STRUCTURE. AND WE HAVE BEEN DOING IT, AND 16:15:27 WE ARE STILL DOING IT. THEREFORE, TO MAKE SURE THAT 16:15:32 COST IS NOT AN ISSUE WHEN IT COMES TO RECALLS. 16:15:35 THIS IS REALLY A STRONG POINT THAT WE HAVE BEEN MAKING. 16:15:39 AND, THEREFORE, AS YOU POINTED OUT, THIS EXPRESSION IS SO 16:15:48 INCONSISTENT FROM OUR PAST AND CURRENT AND FUTURE GUIDING 16:15:51 PRINCIPLE OF THE COMPANY AND I'D LIKE TO CORRECT THAT. 16:15:55 >> THANK YOU VERY MUCH. AND WE APPRECIATE THE WITNESSES 16:16:00 COMING HERE, BUT I'M NOT SURE THAT WE'RE ALWAYS TALKING ABOUT 16:16:06 THE SAME THING. >> THANK YOU CHAIRMAN 16:16:09 ROCKEFELLER. I WANT TO FOLLOW UP ALSO ON WHAT 16:16:13 SENATOR LAUTENBERG WAS ASKING ABOUT AND SPECIFICALLY ABOUT THE 16:16:19 INTERNAL COMPANY DOCUMENT DATED JULY 9th, WHICH YOU'VE BEEN 16:16:22 DISCUSSING WITH HIM. AND THE TERM THAT'S USED IN 16:16:27 THERE, SAVING THE COMPANY $100 MILLION. 16:16:29 AND I KNOW YOU DON'T LIKE THAT TERM. 16:16:35 DID THE COMPANY AS A RESULT OF NOT DOING A VEHICLE RECALL, DID 16:16:40 YOU, IN FACT, SAVE $100 MILLION? WHAT WAS THE AMOUNT OF MONEY 16:16:45 THAT WAS SAVED AS A -- YOU WENT DOWN ONE PATH. 16:16:48 WE KNOW THAT THE PATH YOU WENT DOWN -- THE ENTRAPMENT PROBLEMS 16:16:57 WITH THE PEDAL AND THE FATALITIES CONTINUED. 16:17:01 SO YOU WENT DOWN THAT PATH. IF YOU'D GONE DOWN THE OTHER 16:17:04 PATH OF A VEHICLE RECALL, THAT, OBVIOUSLY, WOULD HAVE BEEN A 16:17:08 MUCH MORE COSTLY. SO WHAT ACTUALLY DID YOU SAVE IN 16:17:14 TERMS OF YOUR COURSE THAT YOU TOOK? 16:17:19 >> WITH ALL MY HONESTY THAT I DO NOT EVEN KNOW WHAT THE BASIS OF 16:17:27 THAT CALCULATION. I AM NOT INTERESTED IN GOING IN 16:17:30 THERE. THE ONLY PROBLEM IS THAT SAVING 16:17:35 ON A RECALL IS INCONSISTENT WITH OUR PRINCIPLE. 16:17:39 SO THAT'S WHAT I WANT TO SAY. >> BUT, SIR, THIS IS YOUR 16:17:45 DOCUMENT. THIS IS A TOYOTA DOCUMENT AND IT 16:17:47 USED THE TERMS THAT YOU SAVED THAT AMOUNT OF MONEY. 16:17:52 SO, CLEARLY, THEY AT LEAST GOT SOME OF THE STATISTICS AND THE 16:17:59 DOLLAR AMOUNT FROM TOYOTA INFORMATION THAT WAS GIVEN TO 16:18:05 THEM. IS THAT CORRECT? 16:18:06 >> NO, WE DON'T HAVE ANY SYSTEMS OR RULES OR TRADITIONS OF 16:18:12 COLLECTING THOSE SAVING AMOUNT IN THE UNITED STATES OR EVEN IN 16:18:21 JAPAN. >> DO ANY OF THE OTHER 16:18:23 EXECUTIVES WANT TO COMMENT ON THIS? 16:18:34 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:19:29 >> Translator: I MIGHT BE JUST REPEATING WHAT MR. INABA SAID. 16:19:33 WE AT TOYOTA MOTOR COMPANY, THE RECALL DECISION-MAKING PROCESS 16:19:38 IS THE FOLLOWING. IT IS REALLY PURELY THE DECISION 16:19:43 ON THE PART OF THE INDIVIDUALS WHO ARE VERY FAMILIAR WITH THE 16:19:48 MARKET SITUATION AND ALSO SOMEONE WHO IS VERY FAMILIAR 16:19:50 WITH THE TECHNICAL CONTENT OF THIS MATTER. 16:19:55 AND THIS WOULD BE REPORTED TO THE MANAGING OFFICER AND HE OR 16:20:01 SHE WOULD APPROVE OF IT AND THEN IT WOULD BE IMPLEMENTED. 16:20:05 IN OTHER WORDS, THIS WHOLE PROCESS WILL COMPLETE WITHIN 16:20:10 THIS FUNCTION OF QUALITY ASSURANCE AND CUSTOMER SERVICES. 16:20:15 THEREFORE, THERE IS NEVER A DISCUSSION THAT WOULD INCLUDE 16:20:20 THE MONEY AMOUNT, HOW MUCH WE WOULD SAVE OR WOULD NOT HAVE 16:20:23 SAVED IF WE HAD DONE THIS OR NOT HAVE DONE THAT. 16:20:28 SO THIS DISCUSSION TAKES PLACE OUTSIDE OF THE EARNINGS OR 16:20:32 SAVINGS OR WHATSOEVER, AND I REALLY WOULD LIKE YOU TO 16:20:35 UNDERSTAND OUR PROCESS. >> SO ALL OF YOU, DO YOU DISPUTE 16:20:41 AND REJECT THE $100 MILLION FIGURE? 16:20:44 DO YOU DENY THE $100 MILLION FIGURE EVEN EXISTS AND IT'S 16:20:49 SOMETHING THAT IS JUST OUT THERE AND BEING DISCUSSED IN THE 16:20:52 PRESS? BUT IT ISN'T -- DOESN'T HAVE 16:20:53 ANYTHING TO DO WITH TOYOTA. IS THAT WHAT YOU ARE SAYING 16:20:57 TODAY? >> SENATOR, I CAN ONLY SAY THAT 16:20:59 I DON'T KNOW THE BASIS OF THAT $100 MILLION. 16:21:07 SO I CANNOT COMMENT ANY FURTHER THAN THAT. 16:21:09 >> WELL, GIVE ME A FIGURE THEN. SO YOU ARE SAYING YOU DON'T KNOW 16:21:13 WHERE THE $100 MILLION CAME FROM, CORRECT? 16:21:17 AND SO YOU ARE DISPUTING THAT $100 MILLION. 16:21:20 THAT'S JUST -- IT'S NOT YOUR -- IT'S NOT THE WAY YOU WOULD 16:21:24 APPROACH IT. OKAY. 16:21:26 SO TELL ME IF -- WHAT THE COMPANY DID IS YOU HAD A FLOOR 16:21:33 MAT RECALL, OKAY? A FLOOR MAT RECALL. 16:21:37 THAT RECALL DID NOT RESULT IN SAFER VEHICLES. 16:21:41 AND, INDEED, YOU HAD PEDAL ENTRAPMENT AND YOU HAD 16:21:44 ADDITIONAL FATALITIES, OKAY? THAT'S WHAT YOU DID. 16:21:48 IF YOU HAD HAD A FULL VEHICLE RECALL, HOW MUCH WOULD THAT HAVE 16:21:52 COST YOUR COMPANY? >> I AM NOT ABLE TO ANSWER THAT 16:21:57 QUESTION. >> COULD YOU ANSWER THAT FOR THE 16:21:59 RECORD? >> YES, SIR. 16:22:01 YES. ALSO, PRIOR -- YOU KNOW, 16:22:04 QUESTIONS, I WOULD LIKE TO GET BACK TO YOU. 16:22:06 THE BASIS OF THAT CALCULATION. >> OKAY. 16:22:10 NOW IN FOLLOWING UP A LITTLE BIT, MY STAFF AND I MET, AND WE 16:22:14 VERY MUCH APPRECIATE IT, MEETING WITH THE TOYOTA PEOPLE THAT CAME 16:22:19 TO OUR OFFICE AND DISCUSSED WITH US THE MATTER BEFORE THE 16:22:25 HEARING. AND THEY INDICATED THE 16:22:30 ACCELERATOR BEING RESHAPED THAT DEALERSHIPS ARE ALSO UPGRADING 16:22:33 THE SOFTWARE ON THE RECALLED VEHICLES TO INCLUDE A BRAKE 16:22:37 OVERRIDE WHICH MR. DITLOW MENTIONED WHEN THE ACCELERATOR 16:22:41 AND BRAKE ARE APPLIED AT THE SAME TIME. 16:22:43 AND THIS OVERRIDE IS CONSIDERED BY MOST VEHICLE MANUFACTURERS AS 16:22:48 AN ESSENTIAL SAFETY DEVICE. MY QUESTION TO WHOEVER HAS THE 16:22:53 EXPERTISE HERE IS THIS SOFTWARE UPGRADE BEING PROVIDED 16:22:57 AUTOMATICALLY AT THE NEXT SERVICE APPOINTMENT TO ALL 16:23:01 EXISTING TOYOTA VEHICLES WHOSE COMPUTERS CAN SUPPORT THE 16:23:05 UPGRADE, EVEN THOSE NOT SUBJECT TO THE RECALL? 16:23:21 [ SPEAKING JAPANESE ] >> Translator: THERE MAY BE A 16:23:41 SLIGHT MISCOMMUNICATION, SO I WOULD LIKE TO CORRECT THAT. 16:23:45 BRAKE OVERRIDE SYSTEM IS NOT QUITE THAT GENERAL YET. 16:23:49 I BELIEVE CURRENTLY ABOUT 20% OF THE VEHICLES IN NORTH AMERICA 16:23:53 ARE EQUIPPED WITH BRAKE OVERRIDE SYSTEM. 16:24:05 [ SPEAKING JAPANESE ] >> Translator: WE AT TOYOTA, 16:24:17 THIS BRAKE OVERRIDE SYSTEM IS A VERY EFFECTIVE MANNER TO ADDRESS 16:24:22 A CERTAIN PORTION OF THE SUDDEN ACCELERATION, SO WE WOULD LIKE 16:24:27 TO IMPLEMENT THIS SYSTEM TO THE VEHICLES PRODUCED IN NORTH 16:24:33 AMERICA ONE BY ONE. >> AND THIS IS SCHEDULED TO 16:24:44 COMPLETE TOWARDS THE END OF YEAR 2010. 16:24:55 [ SPEAKING JAPANESE ] >> Translator: WITH REGARDS TO 16:25:24 THE EXISTING VEHICLE, THE CUSTOMERS WHO ARE PARTICULARLY 16:25:29 CONCERNED ABOUT THIS FLOOR MAT ISSUE, WE HAVE SELECTED SEVEN 16:25:35 MODELS THAT HAS A VERY HIGH LEVEL OF COMPLAINTS TO BE THE 16:25:40 SUBJECT OF THIS SOFTWARE UPGRADE. 16:25:42 SO IF THE CUSTOMER BRINGS THEIR VEHICLE TO THE DEALERSHIP, WE 16:25:46 WILL PROVIDE THIS SOFTWARE UPGRADE. 16:26:03 ONCE WE COMPLETE ALL THESE UPGRADE WORK, TOYOTA VEHICLE 16:26:07 WOULD BECOME JUST AS SAFE OR SAFER THAN OTHER VEHICLES. 16:26:10 AND I'M VERY CONVINCED OF THAT. >> THANK YOU. 16:26:15 I SEE MY TIME IS EXHAUSTED. THANK YOU VERY MUCH. 16:26:18 I APPRECIATE VERY MUCH THE WITNESSES BEING HERE TODAY. 16:26:21 >> THANK YOU, SENATOR. SENATOR BEGICH. 16:26:25 >> THANK YOU FOR HOLDING THIS AND THANK YOU VERY MUCH FOR 16:26:29 BEING HERE TODAY. I WILL BE PAROCHIAL FOR MY FIRST 16:26:32 QUESTION AND THEN BROADER QUESTIONS TO FOLLOW UP ON MANY 16:26:35 QUESTIONS THAT FOLKS HAVE HERE. I REPRESENT THE STATE OF ALASKA. 16:26:40 MANY OF OUR RESIDENTS LIVE IN RURAL PARTS OF THE STATE WHERE 16:26:43 THERE ARE NO ROADS EXCEPT WHEN THEY GET THERE IN THEIR 16:26:47 COMMUNITY. HOW WILL YOU ADDRESS THE 16:26:48 SERVICING THAT THEY WILL NEED WHEN THEY HAVE TO BARGE THESE 16:26:52 VEHICLES TO THEIR HOME, WHERE THEY PURCHASE THEM FROM A DEALER 16:26:55 HUNDREDS OF MILES AWAY. HOW WILL YOU DEAL WITH THOSE 16:26:58 FOLKS? >> WELL, FIRST OF ALL, WE WILL 16:27:02 ASK OUR DEALERS TO TAKE CARE OF THE CUSTOMERS AS MUCH AS THEY 16:27:06 CAN. SO IT IS IN PRINCIPLE THAT HOW 16:27:10 THEY TREAT THE CUSTOMERS, AND I HOPE THEY WILL TREAT A PROPER 16:27:15 WAY. AND ALSO IF THERE'S ANY SORT OF 16:27:18 SITUATION WHERE A CUSTOMER CANNOT BRING THE CARS TO THE 16:27:24 DEALERSHIP OR AT THE SAME TIME HE HAS ANY CONCERNS, I THINK WE 16:27:28 ALLOW THE DEALERS TO PAY THE COST, IF NECESSARY AND THEN WE 16:27:33 WILL REIMBURSE IT. >> THANK YOU. 16:27:35 VERY GOOD. THAT'S IMPORTANT. 16:27:37 AND I'M A DRIVER OF A TOYOTA. I OWN A HIGHLANDER HYBRID. 16:27:40 I DROVE IT FROM ALASKA TO HERE. 19 DAYS. 16:27:44 5,000 MILES. AND IT DID A GOOD JOB. 16:27:46 NOW TO THE BROADER QUESTIONS THAT SOME HAVE ASKED HERE, I HAD 16:27:50 NOT SEEN THE PRESENTATION THAT SENATOR LEMIUX TALKED ABOUT. 16:27:54 WILL YOU RESPOND TO HIM IN DETAIL ON THE RECORD AT A LATER 16:27:58 TIME, HIS CONCERNS ABOUT THAT DOCUMENT THAT HE PRESENTED IN 16:28:02 THE SLIDE SHOW? >> YES. 16:28:03 >> VERY GOOD. LET ME ASK YOU, IF I CAN, A 16:28:07 COUPLE -- SO I UNDERSTAND THE PROCESS. 16:28:09 I UNDERSTAND YOU HAVE A TEAM LOWER THAN SENIOR MANAGEMENT 16:28:14 THAT MAKES A DECISION ON RECALLS. 16:28:18 WHEN THAT IS BROUGHT TO THAT TEAM FOR DECISION, IS THERE 16:28:24 ANYONE THAT CAN OVERRULE THAT TEAM OUTSIDE OF THAT GROUP? 16:28:32 >> MR. SASAKI WILL BE BETTER. >> THANK YOU. 16:28:46 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:29:33 >> Translator: THE PROCESS IN WHICH THE RECALL DECISION IS 16:29:36 MADE IS, AS I SAID EARLIER, IT'S PURELY REFLECTS THE MARKET 16:29:42 CONDITIONS AND TECHNICAL CAUSE OF THAT PROBLEM. 16:29:46 HOWEVER, THIS PROCESS IS VERY STRICTLY PRESCRIBED WITHIN OUR 16:29:50 COMPANY, SO IF THE DECISION WAS MADE OUTSIDE OF THAT VERY STRICT 16:29:56 RULES, THEN THAT COULD BE REVIEWED BY THE OFFICERS WHO IS 16:30:02 IN CHARGE OF LOOKING AT THAT OPERATION. 16:30:04 ALSO, WE DO HAVE AUDITORS. AND SO GIVEN A CERTAIN PERIOD OF 16:30:08 TIME, THERE WILL BE A NUMBER OF AUDITS CONDUCTED, AND SO THE 16:30:13 AUDITORS WOULD BE ALSO LOOKING OVER IT. 16:30:15 >> VERY GOOD. CAN I HAVE MAYBE, AGAIN, AT A 16:30:18 LATER TIME, FOR THE RECORD, YOU PROBABLY HAVE A WRITTEN POLICY 16:30:20 ON THIS? CAN YOU SUBMIT THAT TO THE 16:30:23 COMMITTEE FOR REVIEW? >> YES, SIR. 16:30:25 >> ALSO, CAN YOU SUBMIT MAYBE, AND I'LL USE A PERIOD OF TIME 16:30:29 SINCE 2006, BECAUSE THAT'S SOME OF THE DISCUSSION HERE OF 16:30:34 RECALLS THAT HAVE BEEN BROUGHT THROUGH THE CHAIN AND THEN AT 16:30:36 ANY POINT WHERE THEY MIGHT HAVE BEEN STOPPED OR NOT MOVED 16:30:40 FORWARD? COULD YOU PROVIDE THAT TO THE 16:30:42 COMMITTEE BASED ON THIS PROCESS THAT I NOW UNDERSTAND? 16:30:45 >> WE WILL TRY TO DO SO, YES. >> THANK YOU VERY MUCH. 16:30:48 LET ME ALSO ASK A QUESTION THAT WAS ASKED EARLIER TODAY IN THE 16:30:52 EARLY SESSION WAS, AS YOU CAN SEE, THE FEDERAL GOVERNMENT HERE 16:30:55 IS VERY INTERESTED IN SAFETY AND SECURITY OF VEHICLES AND HOW 16:31:00 THEY OPERATE. WHAT ON THE -- WHAT IN THE 16:31:03 JAPANESE GOVERNMENT IS GOING ON IN REGARDS TO WHAT THEY SEE 16:31:07 WE'RE DOING HERE. IS THERE A CORRESPONDING ACTION? 16:31:13 WHO WOULD LIKE TO ANSWER THAT? I'LL LEAVE IT TO YOU TO DECIDE 16:31:16 WHO WILL ANSWER THESE. [ SPEAKING JAPANESE ] 16:31:41 >> Translator: THE RECALL SYSTEM IN JAPAN WAS ACTUALLY BROUGHT -- 16:31:44 PUT TOGETHER AFTER LEARNING FROM THE U.S. SYSTEM. 16:31:47 THEREFORE, THE SYSTEM IN JAPAN IS VERY SIMILAR TO THAT IN THIS 16:31:49 COUNTRY. >> BUT IS THE GOVERNMENT OF 16:31:53 JAPAN TAKING ANY ACTION IN REGARDS TO THIS WHAT WE'RE DOING 16:31:56 HERE OR IS THERE ANY ACTION THEY ARE DOING TO FOLLOW UP ON THE 16:32:00 PRODUCTS THAT ARE BEING EXPORTED? 16:32:16 [ SPEAKING JAPANESE ] >> Translator: ACTUALLY IT IS 16:32:26 THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THAT HAS THAT 16:32:35 JURISDICTION OR AUTHORITY TO MAKE SURE THOSE EXPORTED 16:32:38 VEHICLES WOULD BE TAKEN CARE OF OR LOOKED AFTER WELL. 16:32:43 >> I'LL DO THIS ONE MORE TIME. IT JUST MAY NOT BE ABLE TO BE 16:32:47 ANSWERED AT THIS POINT. ARE THEY DOING ANYTHING BASED ON 16:32:49 WHAT'S HAPPENING AT THIS POINT IN THIS COUNTRY WITH THESE 16:32:52 RECALLS. ARE THEY ADDING EXTRA SCRUTINY 16:32:54 TO YOUR COMPANY? [ SPEAKING JAPANESE ] 16:33:19 >> Translator: YES, WE HAVE RECEIVED A NUMBER OF HEARINGS 16:33:23 FROM THE GOVERNMENT, AND THEY ARE WATCHING HOW THIS RECALLS IN 16:33:30 THE UNITED STATES CAME ABOUT AND HOW THIS ACTUAL IMPLEMENTATION 16:33:33 OF THE RECALL OR EXECUTION OF THE RECALL IS BEING CARRIED OUT. 16:33:37 THEY ARE FOLLOWING US VERY CLOSELY. 16:33:39 >> VERY GOOD. I KNOW I AM OUT OF TIME, I 16:33:41 THINK. LET ME ASK JUST ONE LAST 16:33:43 QUESTION. IT'S KIND OF A STATEMENT WITH A 16:33:46 QUESTION. YOU UNDERSTAND THAT THE 16:33:50 REPUTATION OF THE COMPANY AND THE TRUST OF THE COMPANY BY THE 16:33:56 CONSUMER HAS BEEN DAMAGED. AND THAT THE WAY THAT'S REGAINED 16:34:00 IS BY THE WORK YOU DO ESPECIALLY NOW IN THE RECALL BUT ALSO INTO 16:34:03 THE FUTURE. THAT'S A CLEAR UNDERSTANDING. 16:34:07 AT WHAT POINT DOES THE SENIOR MANAGEMENT INVOLVE THEMSELVES OR 16:34:13 SEE REPORTS ON A REGULAR BASIS AND THE AMOUNT OF RECALLS OR 16:34:18 INCIDENTS THAT ARE BEING DRIVEN FROM THE LOWER RANKS OF THE 16:34:22 EMPLOYEE GROUP INDICATING THERE'S PROBLEMS. 16:34:24 DOES THE SENIOR MANAGEMENT SEE THAT ALL THE WAY TO THE BOTTOM 16:34:27 AND UP? AND HOW OFTEN DO YOU SEE THAT? 16:34:31 >> WELL, PERSONAL EXPERIENCE IS THAT I HAVE BEEN INVOLVED SINCE 16:34:34 THE END OF SEPTEMBER, AND I WILL DO -- PAY VERY CLOSE ATTENTION 16:34:41 ABOUT WHAT'S GOING ON WITH ANY TECHNICAL ISSUES THAT ARISES. 16:34:46 AND, THEREFORE, IT WILL BE A LOT MORE ATTENTION PAID FROM NOW ON 16:34:51 BECAUSE THIS LOSS OF TRUST IS MORE COSTLY THAN ANYTHING ELSE 16:34:56 TO TOYOTA. AND SO THAT WE DO UTMOST TO 16:35:02 RESTORE THAT. THAT'S MY COMMITMENT AND ALSO 16:35:05 OTHER MEMBERS' COMMITMENT. >> THANK YOU VERY MUCH FOR YOUR 16:35:07 TESTIMONY. AGAIN, THANK YOU, MR. CHAIRMAN, 16:35:10 FOR HOLDING THE HEARING. >> THANK YOU, SENATOR BEGICH. 16:35:14 NOW SENATOR NELSON. >> MR. DITLOW? 16:35:20 >> YES. >> THERE'S A DEADLINE COMING FOR 16:35:24 MANDATORY USE OF ELECTRONIC DATA RECORDERS, IS THAT RIGHT? 16:35:28 >> THERE IS -- THERE'S A DEADLINE COMING ON THE 16:35:33 STANDARDIZATION. THERE'S NO REQUIREMENT THAT IT 16:35:35 BE INSTALLED. >> IF THERE'S A DEADLINE FOR 16:35:41 STANDARDIZATION, WHY DOES -- WHAT IS YOUR OPINION THAT TOYOTA 16:35:46 STILL USES PROPRIETARY SOFTWARE TO READ OUT THE CONTENTS IF IT'S 16:35:49 GOING TO BE STANDARDIZED? >> THE DATA THAT ARE GOING TO BE 16:35:56 RECORDED WILL BE STANDARDIZED. THERE IS NO STANDARDIZATION ON 16:36:01 THE READ OUT AND MAKING IT COMMERCIALLY AVAILABLE. 16:36:04 SO IT'S A FAILING IN THE RULE THAT'S ABOUT TO BE ISSUED, OR 16:36:07 THAT HAS BEEN ISSUED AND IT'S ABOUT TO BE MADE FINAL. 16:36:10 >> AND YOU THINK THAT NEEDS TO BE CORRECTED? 16:36:12 >> YES. I MEAN, WE NEED TWO THINGS. 16:36:14 WE NEED TO MANDATE THEM IN ALL VEHICLES AND WE NEED THE READOUT 16:36:19 BE STANDARDIZED SO THAT ANYONE CAN READ IT. 16:36:24 >> IS AN EDR PART OF THE AIR BAG ASSEMBLY? 16:36:31 >> THERE IS, IN FACT, A DATA RECORDER THAT'S ASSOCIATED WITH 16:36:35 THE AIR BAG. THE EDR IS A MORE ADVANCED 16:36:37 VERSION AND IT'S CAPABLE OF MEASURING AND RECORDING MORE 16:36:42 FEATURES THAN THE AIR BAG RECORDER. 16:36:46 >> WELL THEN I WOULD LIKE TO ASK T 16:36:53 TOYOTA. DOES TOYOTA'S EDR RECORD, AND 16:36:57 FOR HOW LONG DOES THE EDR RECORD HOW LONG DOES THE 16:37:08 ELECTRONIC DATA RECORDER RECORD THE DATA BEFORE AND AFTER A 16:37:14 CRASH FOR AN AIR BAG? [ SPEAKING JAPANESE ] 16:37:53 >> Translator: THE CURRENT EDR RECORDS THE FIVE MINUTES PRIOR 16:37:57 TO THE CRASH AND TWO MINUTES -- I'M SORRY, FIVE SECONDS PRIOR TO 16:38:00 THE CRASH AND TWO SECONDS AFTER THE CRASH. 16:38:02 IN OTHER WORDS, THE CURRENT SYSTEM IS TO RECORD THE DATA 16:38:08 RELATED TO THE DEPLOYMENT OF THE AIR BAG AND SO WHETHER THE AIR 16:38:12 BAG IS DEPLOYED OR THE BRAKE IS PRESSED VERY HARDLY OVER THE 16:38:19 SECONDARY LEVEL OR ABOVE. SO THAT'S -- 16:38:23 >> MORE THAN 2 G. SO IT'S FIVE SECONDS PRIOR AND 16:38:26 TWO SECONDS AFTERWARDS. >> WHO MADE THE DECISION IN 16:38:33 TOYOTA TO HAVE ONLY ONE LAPTOP IN THE U.S. WITH THE REQUIRED 16:38:40 SOFTWARE TO READ OUT AN ELECTRONIC DATA RECORDER? 16:38:54 [ SPEAKING JAPANESE ] >> Translator: I DO NOT KNOW AT 16:39:18 THIS TIME WHO HAS DECIDED -- WHO RENDERED THAT DECISION. 16:39:22 HOWEVER IF THAT IS NEEDED, I WILL LOOK INTO IT AND THEN 16:39:25 SUBMIT THE NAME LATER. CURRENTLY, WE ARE USING JUST ONE 16:39:29 LAPTOP TO DO THAT BECAUSE WE HAVE BEEN ABLE TO SUBMIT ALL THE 16:39:33 REQUIRED DATA BY USING THIS ONE PIECE OF LAPTOP. 16:39:37 SO I THINK THAT'S HOW WE HAVE BEEN DOING IT. 16:39:40 >> DOES TOYOTA COLLECT AND STORE ALL THE INFORMATION FROM THE 16:39:44 ELECTRONIC DATA RECORDERS IT DECODES? 16:39:58 [ SPEAKING JAPANESE ] >> Translator: RIGHT NOW THE 16:40:17 EVENT DATA READOUT WILL BE DONE WHEN THE CUSTOMER REQUESTS IT OR 16:40:23 POLICE OR COURT OR AGENCIES LIKE NHTSA, THOSE PUBLIC ENTITIES 16:40:31 ISSUES US A WARRANT TO DO THAT. THEN WE WOULD DO SO. 16:40:34 I MEAN, THESE ARE UNDER SEVERAL STATE LAWS. 16:40:47 [ SPEAKING JAPANESE ] >> Translator: AND THEN WE ARE 16:41:03 TRYING TO DO OUR UTMOST SO THAT THESE WORK CAN BE CARRIED OUT 16:41:07 MORE SPEEDY MANNER. WE WILL HAVE 100 UNITS AVAILABLE 16:41:12 AT THE EARLY APRIL AND BY THE END OF APRIL, WE WILL HAVE 150 16:41:16 SUCH UNITS AVAILABLE IN NORTH AMERICA. 16:41:19 INDEED, WE ARE GOING TO HAND OVER THREE SUCH READERS TO NHTSA 16:41:21 TOMORROW. >> OKAY. 16:41:27 THAT'S VALUABLE INFORMATION BUT THAT'S NOT THE ANSWER TO THE 16:41:29 QUESTION. THE QUESTION WAS, DOES TOYOTA 16:41:31 COLLECT AND STORE ALL THE INFORMATION FROM THE ELECTRONIC 16:41:34 DATA RECORDERS IT DECODES? [ SPEAKING JAPANESE ] 16:41:54 >> Translator: IT IS TRUE TOYOTA READS THEM OUT, BUT I'M NOT SURE 16:41:56 AS I SIT HERE TODAY WHETHER TOYOTA KEEPS SUCH RECORDS. 16:42:00 AND I WILL LOOK INTO IT, SENATOR, AND I WILL GET BACK TO 16:42:02 THE COMMITTEE. >> OKAY. 16:42:08 TELL ME WHY DID TOYOTA OFFICIALS IN JAPAN NOT TAKE SERIOUSLY THE 16:42:19 MESSAGES ABOUT SAFETY CONCERNS THAT TOYOTA'S NORTH AMERICAN 16:42:21 OFFICIALS HAD CONVEYED TO JAPAN? [ SPEAKING JAPANESE ] 16:43:02 [ SPEAKING JAPANESE ] >> Translator: IT IS QUITE 16:43:19 UNFORTUNATE THAT YOU HAVE COME TO FORM THAT NOTION, AND I 16:43:24 WONDER IF THAT WAS -- THAT HAPPENED BECAUSE IN THE PAST 16:43:29 WITH REGARDS TO THE FIELD ACTION DECISION-MAKING THAT RELATES -- 16:43:34 RELATES TO THE SAFETY A MEMBER OF OUR NORTH AMERICAN TEAM WAS 16:43:37 NOT FORMALLY INVOLVED. AND, THEREFORE, WE HAVE 16:43:44 RECTIFIED THIS IMMEDIATELY AND NOW WE WOULD INCLUDE SOMEONE WHO 16:43:47 IS MOST KNOWLEDGEABLE OF THE NORTH AMERICAN MARKET SITUATION 16:43:50 TO BECOME ONE OF THE VERY IMPORTANT PANEL MEMBER THAT 16:43:54 WOULD RENDER THE DECISION REGARDING THE FIELD ACTION. 16:44:01 >> SO YOU THINK THAT HEADQUARTERS IN JAPAN TOOK 16:44:05 SERIOUSLY THE MESSAGES OF SAFETY CONCERNS FROM NORTH AMERICA. 16:44:14 IS THAT CORRECT? [ SPEAKING JAPANESE ] 16:44:52 [ SPEAKING JAPANESE ] >> Translator: YES, THAT IS 16:45:05 CORRECT, ALTHOUGH YOU SAY THE JAPANESE HEADQUARTERS. 16:45:07 IN ACTUALITY THAT WHEN THE DECISION WAS RENDERED, THE 16:45:09 PERSON IN CHARGE OF THAT WAS SENT TO THE UNITED STATES AND 16:45:14 LOOKED AT THE SITUATION UNDER OUR GO AND SEE PRINCIPLE. 16:45:17 AND THAT'S HOW OUR DECISIONS HAD BEEN RENDERED. 16:45:20 THEREFORE, IT IS NOT THE CASE IN THE PAST THAT WITHOUT KNOWING 16:45:25 THE SITUATION IN NORTH AMERICAN MARKET PLACE THAT THE DECISIONS 16:45:30 WERE MADE IN JAPAN. >> MR. CHAIRMAN, THANK YOU. 16:45:35 IT'S SAD FOR THE LOSS OF LIFE, BUT IT'S ALSO SAD AS I SAID IN 16:45:39 MY OPENING COMMENTS ABOUT ALL THESE TOYOTA DEALERS WHO NOW IN 16:45:44 THE MIDDLE OF AN ECONOMIC RECESSION, ARE GETTING HIT WITH 16:45:47 A DOUBLE WAMMY BECAUSE PEOPLE HAVE LOST CONFIDENCE IN TOYOTA. 16:45:52 AND NOW ALL OF THESE SMALL BUSINESSES ARE GETTING HURT ALL 16:45:56 THE MORE BECAUSE PEOPLE ARE NOT COMING IN TO BUY CARS IN THEIR 16:46:00 TOYOTA DEALERSHIPS. THANK YOU, MR. CHAIRMAN, FOR THE 16:46:04 GENEROSITY OF YOUR TIME. >> AS ALWAYS. 16:46:08 THANK YOU VERY MUCH, SENATOR NELSON. 16:46:10 I WILL ASK A FINAL QUESTION AND THEN WE'LL MAKE A CLOSING 16:46:16 STATEMENT. I HAVE HERE A SHEET FROM TOYOTA 16:46:19 CALLED THE TOYOTA MANAGEMENT TEAM. 16:46:23 AND IT'S INTERESTING BECAUSE THE PRESIDENT AND MEMBER OF THE 16:46:29 BOARD IS OBVIOUSLY AKIO TOYODA. THERE ARE FIVE EXECUTIVE VICE 16:46:36 PRESIDENTS. THERE ARE INNUMERABLE SENIOR 16:46:39 MANAGING DIRECTORS. AND THERE ARE DIRECTORS, MEMBERS 16:46:42 OF THE BOARD, JUST TWO. AND OF THE FIVE EXECUTIVE VICE 16:46:49 PRESIDENTS, MEMBERS OF THE BOARD DIRECTLY UNDER THE PRESIDENT, 16:46:53 AKIO TOYODA, TWO OF THEM ARE ON OUR PANEL TODAY. 16:46:58 MR. SASAKI AND MR. USHIAMATA. AND THAT'S WHY I THINK THERE IS 16:47:05 SOME, YOU FEEL, OR WE FEEL, WE BOTH FEEL SOME FRUSTRATION IN 16:47:09 TRYING TO COMMUNICATE OUR EFFORT TO GET TO THE BOTTOM OF SOME OF 16:47:15 OUR QUESTIONS. IT'S THE -- IT'S THE QUESTION OF 16:47:21 ACCOUNTABILITY. WHO IS ACCOUNTABLE. 16:47:23 WHO MAKES DECISIONS? MANY QUESTIONS HAVE COME BACK 16:47:28 THAT WE ARE DOING RECALLS AS IF THAT WERE A PROBLEM SOLVER. 16:47:36 AND IT IS NOT NECESSARILY A PROBLEM SOLVER. 16:47:43 WE WILL GET BACK TO YOU ON THAT. THAT IS NOT A DIRECT ANSWER. 16:47:47 I THINK THERE IS MORE KNOWLEDGE AT THE TABLE THAN HAS DISCLOSED 16:47:55 ITSELF. I DON'T SAY THAT RUDELY. 16:47:56 I JUST SAY THAT IN PERHAPS A TYPICAL AMERICAN/JAPANESE 16:48:05 INABILITY TO COMMUNICATE AS EFFECTIVELY AS WE SHOULD ON A 16:48:07 PARTICULARLY IMPORTANT ISSUE BOTH TO US IN TERMS OF SAFETY 16:48:10 AND YOU IN TERMS OF SAFETY AND SOME LOSS OF CONFIDENCE IN YOUR 16:48:18 PRODUCT. BUT YOU KNOW, ALL THE WAY, SINCE 16:48:21 SENATOR NELSON SAID THIS, SINCE AT LEAST 2002, A LONG TIME AGO, 16:48:29 THOUSANDS OF TOYOTA AND LEXUS OWNERS IN THE UNITED STATES HAVE 16:48:35 COMPLAINED TO TOYOTA THAT THEY EXPERIENCED SUDDEN UNINTENDED 16:48:42 ACCELERATION. SO THEY HAVE BEEN DOING THAT 16:48:45 EVER SINCE. THOUSANDS AND THOUSANDS OF THEM. 16:48:48 THESE TOYOTA OWNERS TOLD TOYOTA THE BRAKES WOULD NOT OVERPOWER 16:48:54 THE SURGING VEHICLE. A NUMBER OF THEM HAVE EVEN HAD 16:49:00 SMOKING BRAKES AND MELTED HUBCAPS. 16:49:05 TO PROVE IT I BELIEVE SENATOR KLOBUCHAR MADE THAT POINT. 16:49:10 HOWEVER, TOYOTA, IN THIS PERSON'S JUDGMENT, DID NOT 16:49:13 LISTEN TO ITS CUSTOMERS, AND IT SENT OUT LETTERS LIKE THIS, 16:49:19 WHICH, OBVIOUSLY, NOBODY CAN READ, BUT I CAN, AND I'LL QUOTE 16:49:23 FROM IT. IT'S RATHER COLD. 16:49:26 IT'S RATHER COLD. THE KEY PARAGRAPH SAYS IN ORDER 16:49:32 FOR THIS ACCIDENT TO HAVE OCCURRED AS A RESULT OF 16:49:35 UNINTENDED ACCELERATION, THERE WOULD HAVE TO BE A SIMULTANEOUS 16:49:40 FAILURE OF TWO TOTALLY INDEPENDENT SYSTEMS, NAMELY THE 16:49:44 BRAKE AND THROTTLE SYSTEMS. OUR INSPECTIONS CONFIRM THAT 16:49:49 THESE SYSTEMS WERE PURELY FUNCTIONAL AND, THEREFORE, IT 16:49:53 SIMPLY SORT OF TOSSED OFF THE AGONY OF OWNER. 16:49:59 NOW THE EVIDENCE THAT EVERYONE HAS NOW SEEN POINTS TO THE EXACT 16:50:07 OPPOSITE CONCLUSION. WE HAVE BEEN TRYING GET AT THAT. 16:50:11 WHICH IS THAT BRAKES COULD NOT CONTROL A SURGING VEHICLE. 16:50:17 SO NOW WE ARE TALKING ABOUT ELECTRONIC SYSTEMS, BRAKE 16:50:24 OVERRIDES. YOU MENTIONED OUTSIDE CONSULTANT 16:50:28 CALLED EXPONENT BUT THIS REPORT TESTED ONLY SIX VEHICLES. 16:50:33 IT IS NOT GOOD ENOUGH. NOT GOOD ENOUGH. 16:50:37 SO LET ME GIVE YOU AN EXAMPLE OF ONE PERSON WHO I THINK MAKES THE 16:50:46 POINT. LAST AUGUST, A BILL SHEPHERD OF 16:50:54 MONROVIA, CALIFORNIA, I DO NOT KNOW THE MAN BUT MY STAFF HAS 16:50:58 TALKED TO BOTH HIM AND THE MASTER MECHANIC I'M ABOUT TO 16:51:03 EXPLAIN. THIS PERSON EXPERIENCED AN 16:51:05 INSTANT OF SUDDEN UNINTENDED ACCELERATION IN THE 2004 CAMRY. 16:51:10 THAT WAS A LONG TIME AGO. HE WAS PULLING INTO HIS GARAGE 16:51:15 AT THE TIME. AND THEN JUST -- I GUESS PULLED 16:51:18 BACK INTO THE LIVING ROOM OR SOMETHING. 16:51:20 AND AT FIRST, THE MASTER MECHANIC AT MR. SHEPHERD'S LOCAL 16:51:25 REPAIR SHOP TOLD HIM AS AN N A SENSE YOU INDICATED TO US THAT 16:51:29 IT WAS IMPOSSIBLE, HIS WORDS, THAT THE CAMRY'S ELECTRONIC 16:51:34 SYSTEM CAUSED THE PROBLEM. SAID IT WAS IMPOSSIBLE. 16:51:40 MR. SHEPHERD WAS A STUBBORN MAN. AND HE INSISTED THAT THIS 16:51:47 MECHANIC KEEP RUNNING TESTS BECAUSE HE FELT THAT THERE WAS 16:51:51 SOME OTHER REASON FOR HIS SURGE WHICH HE DID NOT SXLIK WHICH WAS 16:51:58 THREATENING. ABOUT A WEEK LATER, IT TURNS 16:52:00 OUT, THE MECHANIC RAN A TEST AFTER RUNNING TESTS A LOT. 16:52:06 NOT JUST ONCE, NOT JUST TWICE. FOR A PERIOD OF ABOUT A WEEK. 16:52:09 AND HE RAN A TEST AFTER A WEEK AND IN WHICH THE ACCELERATOR 16:52:14 PEDAL SENSOR INDEED FAILED. SO LO AND BEHOLD, IT WAS NOT -- 16:52:23 JUST CHANGED EVERYTHING. IT CHANGED EVERYTHING. 16:52:27 IN OTHER WORDS, THERE WAS A PROBLEM IN THE ELECTRONIC 16:52:33 THROTTLE SYSTEM. MR. SHEPHERD RECORDED HIS 16:52:36 FINDING TO BOTH TOYOTA. THIS IS BACK IN 2004. 16:52:39 TO BOTH TOYOTA AND TO NHTSA AND TO MY TREMENDOUS SORROW I HAVE 16:52:47 TO SAY NEITHER NHTSA OR TOYOTA HAS EVER GIVEN A RESPONSE TO MR. 16:52:53 SHEPHERD. SO SYMBOLICALLY, AND REALLY, I 16:52:58 ASKED YOU TODAY WE HAD TALKED TO BOTH HIM AND TO HIS MASTER 16:53:02 MECHANIC AT LENGTH. I ASK YOU TODAY, WILL YOU BE IN 16:53:07 TOUCH WITH THIS MAN? WE WILL GIVE YOU HIS ADDRESS. 16:53:11 BECAUSE YOU -- WE DIDN'T HAVE A CHANCE TO GET INTO HOW YOU 16:53:15 HANDLED COMPLAINTS. THAT'S SO KEY TO WHAT LEVEL DO 16:53:19 THEY RISE. WHAT DOES THE BOARD KNOW ABOUT 16:53:21 THEM? DOES THE BOARD MEET AS ALL THE 16:53:24 PEOPLE I SUGGESTED? IS THERE AN EXECUTIVE COMMITTEE 16:53:27 WHICH -- HINTED AT IN THE ORGANIZATIONAL TABLE? 16:53:31 HOW DO THESE THINGS COME TO THE ATTENTION? 16:53:34 THAT WAS MY FRUSTRATION, MY FIRST ROUND OF QUESTIONS WHEN I 16:53:38 TRIED TO FIND OUT WHEN WERE THESE DECISIONS CHANGED IF THEY 16:53:43 WERE CHANGED. WHICH THEY WERE BECAUSE YOUR 16:53:46 PRESIDENT ADMITTED TO THAT. SAFETY, TOOK A SECOND SEAT TO 16:53:51 PROFITS. IN JAPANESE CULTURE, IN JAPANESE 16:53:56 CORPORATIONS, THINGS DO NOT HAPPEN BY CHANCE. 16:53:59 THEY HAPPEN BY DECISION. AND I FAILED TO GET AN ANSWER 16:54:07 ABOUT THAT. I REGRET THAT. 16:54:12 BUT YOU MADE THE STATEMENT -- IN A SENSE, THE RECALLS EQUAL DOING 16:54:21 THE JOB PROPERLY. TAKING CARE OF THE SITUATION. 16:54:26 THEN IT WAS SUGGESTED THAT A PUBLIC RELATIONS EFFORT OR IS 16:54:31 THAT REALLY SOLVING THE PROBLEM. THERE WAS NO ANSWER FORTHCOMING. 16:54:39 ONE OF YOU INDICATED THE 20% OF THE OUTSTANDING TOYOTAS IN 16:54:45 AMERICA HAVE BRAKE OVERRIDE SYSTEMS NOW. 16:54:49 BUT THEN YOU MENTIONED THAT BY THE YEAR 2010, PERHAPS THE END 16:54:56 OF IT, IT WILL BE COMPLETED. WHAT WILL BE COMPLETED? 16:55:00 AND I ASK YOU THIS QUESTION. OBVIOUSLY, THE BRAKE OVERRIDE 16:55:05 SYSTEM IS THE SOLUTION. SO YOU HAVE A PROBLEM. 16:55:10 YOU HAVE THE TOYOTAS YOU MAKE FROM THIS POINT FORWARD AND YOUR 16:55:15 TEN PLANTS HERE AND YOU HAVE THE TOYOTAS THAT HAVE ALREADY BEEN 16:55:21 MADE GOING BACK TO THE 2002 OR BEFORE. 16:55:28 IF YOU SAW BY PUTTING IN A BRAKE OVERRIDE SYSTEM THE PLANT -- THE 16:55:33 TOYOTAS THAT ARE MADE FROM THIS POINT FORWARD OR STARTING, LET'S 16:55:37 SAY, A YEAR AGO, THAT'S GOOD. BUT WHY IS A NEW TOYOTA AND A 16:55:46 NEW TOYOTA OWNER LESS IMPORTANT THAN AN OLDER TOYOTA AND A 16:55:54 PREVIOUS OR OLDER TOYOTA OWNER? THEIR LIVES ARE THE SAME, THEIR 16:55:58 VALUE IS THE SAME. HUMAN BEINGS ARE EQUAL IN THEIR 16:56:03 CAPACITY TO BE PROTECTED. AND SO I WILL JUST ASK THIS 16:56:10 QUESTION. IS IT NOT FAIR TO SUGGEST THAT 16:56:16 TOYOTA SHOULD MAKE AN OVERRIDE SYSTEM FOR ALL TOYOTAS? 16:56:25 THE OLDER ONES WHERE THE ELECTRONICS WERE LESS 16:56:29 COMPLICATED IN THE COMPUTER SYSTEM LESS COMPLICATED AS WELL 16:56:32 AS THE NEW ONES WHERE THINGS ARE MORE COMPLICATED. 16:56:35 THEN YOU MIGHT SAY TO ME, THAT'S VERY EXPENSIVE AND I MIGHT SAY 16:56:43 TO YOU THAT SPREAD OUT OVER THE ENTIRE FLEET, THE EXPENSE WILL 16:56:50 BE LESS SUBSTANTIALLY AND I ALSO MIGHT SAY THAT MAYBE THE EXPENSE 16:56:55 DOESN'T MATTER. BECAUSE THESE ARE HUMAN BEINGS. 16:57:02 AND THEY ARE LOYAL CUSTOMERS, AS SHOWN BY THE FACT THEY STILL 16:57:04 HAVE THE TOYOTAS THEY BOUGHT YEARS AGO. 16:57:10 AND FURTHER, I MIGHT ASK YOU THIS QUESTION. 16:57:15 SUPPOSING I WAS -- I BOUGHT A TOYOTA BACK IN CAMRY BACK IN 16:57:22 2004. AND IT WAS AN OLDER SYSTEM. 16:57:26 AND I HAD A SURGE PROBLEM. UNEXPECTED SURGE PROBLEM. 16:57:32 I WAS DEEPLY DISTRESSED BY IT AND I WAS FRAYED TO DRIVE THE 16:57:35 CAR BECAUSE OF MY CHILDREN AND BECAUSE OF MYSELF AND BECAUSE OF 16:57:41 WHOEVER. I TRADED THAT AUTOMOBILE. 16:57:44 I SOLD THAT AUTOMOBILE TO SOMEBODY ELSE. 16:57:47 THAT BRINGS UP A WHOLE NEW QUESTION. 16:57:51 IS IT PROPER TO SAY THAT ONCE THE CAR IS OUT OF THE HANDS OF 16:57:57 THE ORIGINAL PURCHASER, BUT NOW IN THE HANDS OF ANOTHER AMERICAN 16:58:02 OWNER, IT STILL HAS THIS DEFECT OR POTENTIAL DEFECT IN IT. 16:58:08 WHY WOULD ONE TRADE OR SELL A DEFECTIVE POTENTIALLY DEFECTIVE 16:58:12 AND I GO BACK TO THE SHEPHERD CASE WHERE HE WORKED AT IT AND 16:58:16 WORKED AT AND IT FOUND OUT, YES, THERE WAS A DEFECT. 16:58:22 WHY WOULD SOMEBODY BE TRADED OR SOLD DEFECTIVE CAR? 16:58:26 IS THAT MORAL? IS THAT ETHICAL? 16:58:28 IS THAT PROPER? IS THAT GOOD BUSINESS PRACTICE 16:58:32 FOR TOYOTA? NOW I ASKED YOU MANY QUESTIONS 16:58:36 AND I APOLOGIZE FOR THAT. BUT I HAVE SAID WHAT I WANTED TO 16:58:41 SAY. THAT WHAT I THINK WE WANTED TO 16:58:45 GET AND WE HAVE GOTTEN SOME BEHIND OF THAT BUT NOT 16:58:48 EXPLICITLY REAL ANSWERS TO REAL PROBLEMS. 16:58:51 NOT JUST WE ARE DOING A RECALL. AND, THEREFORE, WE WILL SOLVE 16:58:55 THE PROBLEM. BUT WE ARE GOING TO MAKE SURE 16:58:58 THAT EVERY TOYOTA CAR ON THE ROAD IN THE UNITED STATES OF

Auto mechanic fixing wheel bearings on a car

The Senate Commerce Committee holds hearings on Toyota automobile recalls and the government's response. Those appearing are: Senator Kay Baily Hutchinson, Transportation Ray La Hood; David Strickland, National Highway Transportation Safety Administration; Clarence Ditlow, Executive Director of the Center for Auto Safety. Toyota officals: Mr. Shinichi Sasaki, Executive Vice President, Toyota Motor Corporation Mr. Takeshi Uchiyamada, Executive Vice President, Toyota Motor Corporation Mr. Yoshimi Inaba, President and Chief Executive Officer, Toyota Motor North America, Inc. 16:00:00 SENATOR GEORGE LEMIEUX >> IS THERE ANYBODY FROM TOYOTA WHO IS FAMILIAR 16:00:01 WITH THIS DOCUMENT WHO IS HERE TODAY? >> NOT FROM THREE OF US. 16:00:08 >> WELL, LET ME READ TO YOU, BECAUSE I'M REVIEWING THESE 16:00:11 DOCUMENTS, MR. CHAIRMAN, AS THEY'VE BEEN PRESENTED TO US. 16:00:14 THIS IS A SLIDE SHOW PRESENTATION ABOUT A NEW ERA FOR 16:00:19 TOYOTA AND TMA IN NORTH AMERICA. AND IT GOES THROUGH SEVERAL 16:00:23 ISSUES, INCLUDING SAFETY ISSUES. AND THERE ARE NOTATIONS IN THE 16:00:27 BACK HERE WHICH ARE NOTES TO THIS SLIDE PRESENTATION. 16:00:33 AND ON THE DOCUMENT THAT IS -- HAS AS ITS ENDING BATES NUMBER 16:00:39 25, THERE IS REFERENCE TO SLIDE NUMBER 25 AND IT SAYS THE 16:00:44 FOLLOWING. OUR ABILITY TO MANAGE THE TIDE 16:00:47 OF SAFETY INVESTIGATIONS RESTS LARGELY ON OUR ABILITY TO WORK 16:00:52 WELL WITH NHTSA. OVER THE LAST FEW YEARS, WE'VE 16:00:54 SEEN OUR RELATIONSHIP BEGIN TO SLIP SLIGHTLY WITH NHTSA. 16:00:57 THE REASONS ARE COMPLEX. THEY INCLUDE A COMBINATION OF 16:01:01 INCREASED RECALLS, MORE INVESTIGATION AND TOUGHER 16:01:06 NEGOTIATIONS BETWEEN TOYOTA AND THE AGENCY. 16:01:09 NOT ALL OF THE RECALL INCREASE CAN BE BLAMED ON SLIPPING TOYOTA 16:01:15 QUALITY. AND IT GOES ON FROM THERE. 16:01:20 NONE OF YOU HAVE, I GUESS HAVE SEEN THIS DOCUMENT, BUT THIS IS 16:01:25 FROM THE PRESIDENT OF TOYOTA MOTORS NORTH AMERICA OR AT LEAST 16:01:30 IT CONTAINS INFORMATION THAT HE, I GUESS, PRESENTED. 16:01:35 AND I AM WORRIED ABOUT SOME OF THESE PHRASES ABOUT MANAGING THE 16:01:39 TIDE OF SAFETY INVESTIGATIONS. I AM CONCERNED ABOUT NOT ALL OF 16:01:43 THE RECALL INCREASE CAN BE BLAMED ON SLIPPING TOYOTA 16:01:48 QUALITY. AND TO THE POINT THAT WAS MADE 16:01:50 BEFORE, THIS LOOKS LIKE MORE OF AN EFFORT TO GET IN FRONT OF, IN 16:01:57 A PUBLIC RELATIONS WAY, A PROBLEM IN ORDER TO INSTILL 16:02:00 CONFIDENCE IN THE CONSUMER AND TO DEAL WITH THE GOVERNMENT 16:02:04 REGULATORY AGENCY THEN IT DOES TRYING TO SOLVE A PROBLEM. 16:02:09 AND FROM THE DOCUMENTS THAT I'VE REVIEWED, YOU'VE KNOWN ABOUT AN 16:02:14 ACCELERATION PROBLEM WHETHER IT'S BEEN CAUSED BY ELECTRONICS, 16:02:16 WHICH YOU DON'T BELIEVE IT HAS BEEN, OR WHETHER IT'S BEEN 16:02:19 CAUSED BY FLOOR MATS, WHICH I GUESS YOU BELIEVE IT DOES, AND 16:02:22 YOU'VE TAKEN MEASURES ON THAT. YOU'VE KNOWN ABOUT THIS PROBLEM 16:02:25 FOR SOME TIME. AND I HAVE A CONCERN THAT THE 16:02:27 EFFORTS THAT YOU TOOK IN THE PAST WERE NOT APPROPRIATE. 16:02:32 AND YOU DID NOT GO FAR ENOUGH IN THE YEARS PRIOR TO WHAT YOU ARE 16:02:36 DOING TODAY. DO YOU CARE TO COMMENT ON THAT 16:02:42 STATEMENT? [ SPEAKING JAPANESE ] 16:03:15 [ SPEAKING JAPANESE ] >> Translator: AROUND 2006, THE 16:03:56 NUMBER OF RECALLS IN NORTH AMERICA INCREASED AND WITH 16:04:00 REGARDS TO THIS, I DO NOT HAVE A -- ANY DATA ON ME PERSONALLY 16:04:05 RIGHT NOW. SO I WOULD LIKE TO SUBMIT TO THE 16:04:09 COMMITTEE LATER MORE ACCURATE NUMBERS. 16:04:12 IT IS CERTAINLY AN EMBARRASSING THING FOR AN AUTOMOTIVE 16:04:17 MANUFACTURER TO CREATE A -- OR PRODUCE A VEHICLE THAT HAVE TO 16:04:20 BE RECALLED LATER. HOWEVER, WHEN WE REALIZE THAT 16:04:24 RECALL IS NEEDED, THEN THAT -- THE WORK OF RECALL SHOULD BE 16:04:28 DONE PROPERLY. SO THIS MAY SOUND A LITTLE BIT 16:04:33 CONTRADICTORY OR COMPLEX OR A BIT STRANGE, BUT THE NUMBER OF 16:04:37 RECALLS -- RECALL WAS INCREASING AND THAT MEANT THAT ON THE ONE 16:04:41 HAND, WE WERE DOING OUR JOB PROPERLY. 16:04:57 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:05:45 [ SPEAKING JAPANESE ] >> Translator: WITH REGARDS TO 16:06:00 OUR RELATIONSHIP WITH NHTSA IT IS REALLY UNFORTUNATE THAT SOME 16:06:03 OF YOU MAY HAVE A CONCERN OR AS SOME PEOPLE MIGHT SUSPECT, IT 16:06:05 IS -- IT WAS UNHEALTHY. I WOULD LIKE TO CLARIFY A -- 16:06:10 CLEAR THAT GOING FORWARD AND BUILD A HEALTHY RELATIONSHIP 16:06:14 WITH NHTSA. IN THE PAST TEN YEARS, TOYOTA 16:06:18 HAS CONDUCTED, IN TOTAL, 66 VEHICLE RECALLS IN NORTH AMERICA 16:06:24 OF WHICH 57 WERE ON A VOLUNTARY BASIS. 16:06:28 IN OTHER WORDS, WE WERE NOT GIVEN ANY INSTRUCTION FROM NHTSA 16:06:33 TO DO THESE RECALLS. HOWEVER, WE DID DO THAT. 16:06:36 UNFORTUNATELY, THE REMAINING NINE CASES OUR RESPONSE WAS NOT 16:06:41 GOOD ENOUGH AND IT ENDED UP IN THE INSTRUCTED RECALL BY NHTSA. 16:06:47 BUT WE ARE NOT TRYING TO WORK ON THE RELATIONSHIP WITH NHTSA SO 16:06:50 THAT IF WE CAN PERSUADE THEM WE CAN AVOID RECALLS OR ANYTHING 16:06:57 LIKE THAT. AND OUR PAST RECORD TESTIFIES TO 16:07:00 THAT. AND THIS IS A PIECE OF 16:07:02 INFORMATION I WOULD LIKE YOU TO UNDERSTAND. 16:07:06 >> THANK YOU SENATOR. >> SENATOR LAUTENBERG. 16:07:19 >> I WANT TO ASK MR. INABA A QUESTION. 16:07:22 IT WAS A DOCUMENT ENTITLED 2009 AND DESCRIBED WHAT THE AUTHOR 16:07:26 CONSIDERED TO BE A WIN FOR TOYOTA. 16:07:29 ONE OF THESE WINS WERE TOYOTA'S SELF-DESCRIBED SAFETY GROUP WAS 16:07:39 $100 MILLION SAVING FROM AVOIDING THE SAFETY RECALL IN 16:07:45 2007. MR. INABE, YOUR NAME IS ON THE 16:07:48 COVER PAGE OF THE DOCUMENT. AND YOU HAVE STATED THAT IT IS A 16:07:53 PRESENTATION THAT WAS MADE TO YOU, THUS YOU ARE ENDORSING -- 16:07:58 YOU ARE ENDORSING? >> YES, SIR. 16:08:01 >> DID THIS PRESENTATION RAISE A RED FLAG THAT YOUR COMPANY WAS 16:08:07 PRIORITIZING PROFIT OVER SAFETY? >> IT HAS NEVER BEEN THE CASE, 16:08:12 AND IT WILL NEVER BE THE CASE. >> IT WAS DESCRIBED AS A WIN. 16:08:15 A WIN IS A VICTORY, OBVIOUSLY. >> LET ME ADDRESS. 16:08:26 SAFETY IS A VALIANT PRINCIPLE. I FOUND -- I REREAD THAT ONLY 16:08:32 RECENTLY AND THEN FOUND A LITTLE EMBARRASSING AND IT IS SO 16:08:38 INCONSISTENT WITH OUR GUIDING PRINCIPLE AND PERSONAL BELIEF. 16:08:42 THEREFORE, ALTHOUGH THEY TRY TO IMPRESS ME WITH BIGGER NUMBERS 16:08:46 OF MONEY THAT THEY SAID THEY SAVED, BUT I WOULD LIKE TO READ 16:08:52 IN MY POSITION TO RECTIFY IF THERE IS ANY ELEMENT OF THAT 16:08:55 THOUGHT IN OUR ORGANIZATION. >> IS ANYONE AT TOYOTA 16:09:03 RESPONSIBLE -- BEEN MADE RESPONSIBLE FOR THIS 16:09:08 PRESENTATION OR RELATED SAFETY LAPSES AT TOYOTA BEEN 16:09:17 REPRIMANDED FOR THEIR LAPSE? >> MAY I -- 16:09:36 >> OKAY, SORRY. I JUST WANTED TO UNDERSTAND YOUR 16:09:40 ENGLISH CORRECTLY. I HAVE TOLD THE WASHINGTON 16:09:43 OFFICE SINCE I FOUND IT LATER ON THAT THIS IS NOT OUR COMPANY, 16:09:47 SORT OF, POLICY. THE COST COMES FIRST THAN THE 16:09:58 SAFETY. I ADVISED THEM SAFETY COMES 16:10:00 FIRST. THIS IS THE TOP PRIORITY OF A 16:10:02 COMPANY. THAT'S ALL AND THERE'S NO -- 16:10:04 >> BUT THERE -- IT WAS NOT SUGGESTED THAT ANYBODY IN THE 16:10:09 COMPANY WAS RESPONSIBLE FOR -- YOU ARE AN ENGINEER AS I 16:10:14 REMEMBER OR ONE OF YOU IS AN ENGINEER. 16:10:18 IS IT POSSIBLE THAT THERE IS NO ASSIGNMENT OF RESPONSIBILITY FOR 16:10:25 THIS LAPSE? DIDN'T IT FALL ON SOME 16:10:28 DEPARTMENT OR SOME UNIT IN THE COMPANY THAT PERMITTED THIS TO 16:10:34 HAPPEN? >> MAY I ASK -- PERMITTED THIS 16:10:36 KIND OF PRESENTATION HAPPEN? IS THAT WHAT YOU -- 16:10:40 >> NO, THAT THE ACCELERATION HAPPENED. 16:10:44 THE SUDDEN ACCELERATION HAPPENED. 16:10:45 THAT THE ACCIDENTS HAPPENED. THAT THE INJURIES HAPPENED. 16:10:49 DOES IT SAY, LOOK, YOU, SO AND SO, YOUR DEPARTMENT, YOUR 16:10:58 RESPONSIBILITY, AND WE'RE DEADLY SERIOUS ABOUT THIS AT TOYOTA, 16:11:03 AND IF YOU MAKE THAT KIND OF MISTAKE, YOUR CAREER IS 16:11:07 ESSENTIALLY OVER OR WHATEVER -- HOWEVER YOU MANAGE. 16:11:12 >> OKAY. LET ME JUST ADDRESS THIS FIRST. 16:11:14 OF COURSE WE TAKE ANY ACCIDENT OR ESPECIALLY A FATAL ACCIDENT, 16:11:20 VERY SERIOUSLY. BUT THE SAME TIME, I DON'T 16:11:25 BELIEVE THERE IS ANY SORT OF RULE OR SYSTEM THAT WE WOULD 16:11:32 PUNISH ANY INDIVIDUALS WHEN IT HAPPENS, EVEN IF WE KNOW THE 16:11:38 ROOT CAUSE OF THAT. >> THE -- TOYOTA'S PROGRESS WAS 16:11:54 REMARKABLE. THEY WENT FROM 10% MARKET SHARE 16:11:57 IN 1999 TO 13% OF THE MARKET SHARE IN 2008. 16:12:05 GM FELL FROM 17% TO 12% IN THE SAME PERIOD OF TIME. 16:12:10 FORD FELL FROM 13% TO 8% IN THE SAME PERIOD OF TIME. 16:12:15 NOW WHAT I'M TRYING TO UNDERSTAND IS WHAT WAS -- WHY 16:12:19 WAS TOYOTA ABLE TO MOVE SO DEFTLY, SO QUICKLY, INTO THE 16:12:25 MARKET PLACE AND OVERCOME THE ESTABLISHED AUTO INDUSTRY THAT 16:12:30 EXISTED IN THIS COUNTRY? >> I AM FROM SALES AND 16:12:37 MARKETING, SO I HAVE TO RESPOND TO YOUR QUESTION. 16:12:44 WE BELIEVE THAT THE QUALITY OF THE VEHICLES ARE THE ONE THAT, 16:12:49 OVER YEARS, WE HAVE BEEN IN THIS COUNTRY 50 YEARS. 16:12:52 AND IT IS NOT SO MUCH A ONE INCIDENT OR ANYTHING, BUT SORT 16:12:58 OF CONTINUOUS SORT OF REASSURANCE TO THE CUSTOMER THAT 16:13:02 OUR PRODUCT IS RELIABLE AND SAFE AND DURABLE. 16:13:07 IS THE ONE THAT REALLY BROUGHT US UP TO HERE. 16:13:12 OF COURSE, WE ARE VERY EMBARRASSED. 16:13:14 WE ARE VERY TROUBLED BY THIS RECENT INCIDENT SO THAT WE WOULD 16:13:17 HAVE TO GO BACK TO BASICS TO REALLY REAFFIRM OUR CUSTOMERS 16:13:23 THAT OUR PRODUCT IS ONE OF THE SAFEST AND MOST RELIABLE. 16:13:27 AND THIS IS THE ONLY WAY. I MEAN, WE HAVE NOT SPENT ANY 16:13:31 MORE INCENTIVE THAN THE AVERAGE OR ANYTHING. 16:13:35 SO I THINK REALLY THIS BUILDING A TRUST AMONG THE CUSTOMERS IS A 16:13:40 KEY TO OUR PAST SUCCESS AND WE WILL LIKE TO CONTINUE DOING SO 16:13:44 INTO THE FUTURE. >> YOU KNOW, THERE'S AN 16:13:49 INSINUATION HERE BECAUSE YOU DESCRIBE $100 MILLION SAVINGS. 16:13:55 THAT'S EARNINGS BASICALLY, FROM AVOIDING A SAFETY RECALL IN 16:14:01 2007. NOW THAT DOESN'T SOUND LIKE 16:14:06 TOYOTA WAS SATISFIED WITH ITS IDENTIFICATION AS RELIABLE, 16:14:17 SAFE, YOUR WORD, THERE. BECAUSE IT LOOKED LIKE THERE WAS 16:14:21 A MOVE TO MAKE PROFITS BY MAYBE TAKING SHORTCUTS. 16:14:26 I MENTIONS THIS EARLIER. IT'S A LITTLE INCONSISTENT WITH 16:14:32 ALL DUE RESPECT, MR. INABA, THAT WHEN YOU TALK ABOUT MARKET 16:14:40 SHARE, GROWING AS IT WAS. AND I BELIEVE IN A COMPETITIVE 16:14:43 MARKET PLACE, BUT WHEN IT'S THAT DRASTIC AND INCLUDED IN THERE IS 16:14:50 100 MILLION BUCKS WE MADE BY NOT PAYING A FINE OR NOT DOING WHAT 16:14:57 WE SHOULD HAVE. >> FIRST OF ALL, AGAIN, COST IS 16:15:06 NOT AN ISSUE IN -- WHEN IT COMES TO RECALL OR SAFETY ISSUES. 16:15:12 AND IN JAPAN, WE DELIBERATELY SEPARATE IT FROM A RECALL 16:15:17 DECISION TO A MANAGEMENT DECISION. 16:15:19 AND, THEREFORE, IT IS DECIDED ON THE VERY LOWER LEVEL OF THE 16:15:25 MANAGEMENT STRUCTURE. AND WE HAVE BEEN DOING IT, AND 16:15:27 WE ARE STILL DOING IT. THEREFORE, TO MAKE SURE THAT 16:15:32 COST IS NOT AN ISSUE WHEN IT COMES TO RECALLS. 16:15:35 THIS IS REALLY A STRONG POINT THAT WE HAVE BEEN MAKING. 16:15:39 AND, THEREFORE, AS YOU POINTED OUT, THIS EXPRESSION IS SO 16:15:48 INCONSISTENT FROM OUR PAST AND CURRENT AND FUTURE GUIDING 16:15:51 PRINCIPLE OF THE COMPANY AND I'D LIKE TO CORRECT THAT. 16:15:55 >> THANK YOU VERY MUCH. AND WE APPRECIATE THE WITNESSES 16:16:00 COMING HERE, BUT I'M NOT SURE THAT WE'RE ALWAYS TALKING ABOUT 16:16:06 THE SAME THING. >> THANK YOU CHAIRMAN 16:16:09 ROCKEFELLER. I WANT TO FOLLOW UP ALSO ON WHAT 16:16:13 SENATOR LAUTENBERG WAS ASKING ABOUT AND SPECIFICALLY ABOUT THE 16:16:19 INTERNAL COMPANY DOCUMENT DATED JULY 9th, WHICH YOU'VE BEEN 16:16:22 DISCUSSING WITH HIM. AND THE TERM THAT'S USED IN 16:16:27 THERE, SAVING THE COMPANY $100 MILLION. 16:16:29 AND I KNOW YOU DON'T LIKE THAT TERM. 16:16:35 DID THE COMPANY AS A RESULT OF NOT DOING A VEHICLE RECALL, DID 16:16:40 YOU, IN FACT, SAVE $100 MILLION? WHAT WAS THE AMOUNT OF MONEY 16:16:45 THAT WAS SAVED AS A -- YOU WENT DOWN ONE PATH. 16:16:48 WE KNOW THAT THE PATH YOU WENT DOWN -- THE ENTRAPMENT PROBLEMS 16:16:57 WITH THE PEDAL AND THE FATALITIES CONTINUED. 16:17:01 SO YOU WENT DOWN THAT PATH. IF YOU'D GONE DOWN THE OTHER 16:17:04 PATH OF A VEHICLE RECALL, THAT, OBVIOUSLY, WOULD HAVE BEEN A 16:17:08 MUCH MORE COSTLY. SO WHAT ACTUALLY DID YOU SAVE IN 16:17:14 TERMS OF YOUR COURSE THAT YOU TOOK? 16:17:19 >> WITH ALL MY HONESTY THAT I DO NOT EVEN KNOW WHAT THE BASIS OF 16:17:27 THAT CALCULATION. I AM NOT INTERESTED IN GOING IN 16:17:30 THERE. THE ONLY PROBLEM IS THAT SAVING 16:17:35 ON A RECALL IS INCONSISTENT WITH OUR PRINCIPLE. 16:17:39 SO THAT'S WHAT I WANT TO SAY. >> BUT, SIR, THIS IS YOUR 16:17:45 DOCUMENT. THIS IS A TOYOTA DOCUMENT AND IT 16:17:47 USED THE TERMS THAT YOU SAVED THAT AMOUNT OF MONEY. 16:17:52 SO, CLEARLY, THEY AT LEAST GOT SOME OF THE STATISTICS AND THE 16:17:59 DOLLAR AMOUNT FROM TOYOTA INFORMATION THAT WAS GIVEN TO 16:18:05 THEM. IS THAT CORRECT? 16:18:06 >> NO, WE DON'T HAVE ANY SYSTEMS OR RULES OR TRADITIONS OF 16:18:12 COLLECTING THOSE SAVING AMOUNT IN THE UNITED STATES OR EVEN IN 16:18:21 JAPAN. >> DO ANY OF THE OTHER 16:18:23 EXECUTIVES WANT TO COMMENT ON THIS? 16:18:34 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:19:29 >> Translator: I MIGHT BE JUST REPEATING WHAT MR. INABA SAID. 16:19:33 WE AT TOYOTA MOTOR COMPANY, THE RECALL DECISION-MAKING PROCESS 16:19:38 IS THE FOLLOWING. IT IS REALLY PURELY THE DECISION 16:19:43 ON THE PART OF THE INDIVIDUALS WHO ARE VERY FAMILIAR WITH THE 16:19:48 MARKET SITUATION AND ALSO SOMEONE WHO IS VERY FAMILIAR 16:19:50 WITH THE TECHNICAL CONTENT OF THIS MATTER. 16:19:55 AND THIS WOULD BE REPORTED TO THE MANAGING OFFICER AND HE OR 16:20:01 SHE WOULD APPROVE OF IT AND THEN IT WOULD BE IMPLEMENTED. 16:20:05 IN OTHER WORDS, THIS WHOLE PROCESS WILL COMPLETE WITHIN 16:20:10 THIS FUNCTION OF QUALITY ASSURANCE AND CUSTOMER SERVICES. 16:20:15 THEREFORE, THERE IS NEVER A DISCUSSION THAT WOULD INCLUDE 16:20:20 THE MONEY AMOUNT, HOW MUCH WE WOULD SAVE OR WOULD NOT HAVE 16:20:23 SAVED IF WE HAD DONE THIS OR NOT HAVE DONE THAT. 16:20:28 SO THIS DISCUSSION TAKES PLACE OUTSIDE OF THE EARNINGS OR 16:20:32 SAVINGS OR WHATSOEVER, AND I REALLY WOULD LIKE YOU TO 16:20:35 UNDERSTAND OUR PROCESS. >> SO ALL OF YOU, DO YOU DISPUTE 16:20:41 AND REJECT THE $100 MILLION FIGURE? 16:20:44 DO YOU DENY THE $100 MILLION FIGURE EVEN EXISTS AND IT'S 16:20:49 SOMETHING THAT IS JUST OUT THERE AND BEING DISCUSSED IN THE 16:20:52 PRESS? BUT IT ISN'T -- DOESN'T HAVE 16:20:53 ANYTHING TO DO WITH TOYOTA. IS THAT WHAT YOU ARE SAYING 16:20:57 TODAY? >> SENATOR, I CAN ONLY SAY THAT 16:20:59 I DON'T KNOW THE BASIS OF THAT $100 MILLION. 16:21:07 SO I CANNOT COMMENT ANY FURTHER THAN THAT. 16:21:09 >> WELL, GIVE ME A FIGURE THEN. SO YOU ARE SAYING YOU DON'T KNOW 16:21:13 WHERE THE $100 MILLION CAME FROM, CORRECT? 16:21:17 AND SO YOU ARE DISPUTING THAT $100 MILLION. 16:21:20 THAT'S JUST -- IT'S NOT YOUR -- IT'S NOT THE WAY YOU WOULD 16:21:24 APPROACH IT. OKAY. 16:21:26 SO TELL ME IF -- WHAT THE COMPANY DID IS YOU HAD A FLOOR 16:21:33 MAT RECALL, OKAY? A FLOOR MAT RECALL. 16:21:37 THAT RECALL DID NOT RESULT IN SAFER VEHICLES. 16:21:41 AND, INDEED, YOU HAD PEDAL ENTRAPMENT AND YOU HAD 16:21:44 ADDITIONAL FATALITIES, OKAY? THAT'S WHAT YOU DID. 16:21:48 IF YOU HAD HAD A FULL VEHICLE RECALL, HOW MUCH WOULD THAT HAVE 16:21:52 COST YOUR COMPANY? >> I AM NOT ABLE TO ANSWER THAT 16:21:57 QUESTION. >> COULD YOU ANSWER THAT FOR THE 16:21:59 RECORD? >> YES, SIR. 16:22:01 YES. ALSO, PRIOR -- YOU KNOW, 16:22:04 QUESTIONS, I WOULD LIKE TO GET BACK TO YOU. 16:22:06 THE BASIS OF THAT CALCULATION. >> OKAY. 16:22:10 NOW IN FOLLOWING UP A LITTLE BIT, MY STAFF AND I MET, AND WE 16:22:14 VERY MUCH APPRECIATE IT, MEETING WITH THE TOYOTA PEOPLE THAT CAME 16:22:19 TO OUR OFFICE AND DISCUSSED WITH US THE MATTER BEFORE THE 16:22:25 HEARING. AND THEY INDICATED THE 16:22:30 ACCELERATOR BEING RESHAPED THAT DEALERSHIPS ARE ALSO UPGRADING 16:22:33 THE SOFTWARE ON THE RECALLED VEHICLES TO INCLUDE A BRAKE 16:22:37 OVERRIDE WHICH MR. DITLOW MENTIONED WHEN THE ACCELERATOR 16:22:41 AND BRAKE ARE APPLIED AT THE SAME TIME. 16:22:43 AND THIS OVERRIDE IS CONSIDERED BY MOST VEHICLE MANUFACTURERS AS 16:22:48 AN ESSENTIAL SAFETY DEVICE. MY QUESTION TO WHOEVER HAS THE 16:22:53 EXPERTISE HERE IS THIS SOFTWARE UPGRADE BEING PROVIDED 16:22:57 AUTOMATICALLY AT THE NEXT SERVICE APPOINTMENT TO ALL 16:23:01 EXISTING TOYOTA VEHICLES WHOSE COMPUTERS CAN SUPPORT THE 16:23:05 UPGRADE, EVEN THOSE NOT SUBJECT TO THE RECALL? 16:23:21 [ SPEAKING JAPANESE ] >> Translator: THERE MAY BE A 16:23:41 SLIGHT MISCOMMUNICATION, SO I WOULD LIKE TO CORRECT THAT. 16:23:45 BRAKE OVERRIDE SYSTEM IS NOT QUITE THAT GENERAL YET. 16:23:49 I BELIEVE CURRENTLY ABOUT 20% OF THE VEHICLES IN NORTH AMERICA 16:23:53 ARE EQUIPPED WITH BRAKE OVERRIDE SYSTEM. 16:24:05 [ SPEAKING JAPANESE ] >> Translator: WE AT TOYOTA, 16:24:17 THIS BRAKE OVERRIDE SYSTEM IS A VERY EFFECTIVE MANNER TO ADDRESS 16:24:22 A CERTAIN PORTION OF THE SUDDEN ACCELERATION, SO WE WOULD LIKE 16:24:27 TO IMPLEMENT THIS SYSTEM TO THE VEHICLES PRODUCED IN NORTH 16:24:33 AMERICA ONE BY ONE. >> AND THIS IS SCHEDULED TO 16:24:44 COMPLETE TOWARDS THE END OF YEAR 2010. 16:24:55 [ SPEAKING JAPANESE ] >> Translator: WITH REGARDS TO 16:25:24 THE EXISTING VEHICLE, THE CUSTOMERS WHO ARE PARTICULARLY 16:25:29 CONCERNED ABOUT THIS FLOOR MAT ISSUE, WE HAVE SELECTED SEVEN 16:25:35 MODELS THAT HAS A VERY HIGH LEVEL OF COMPLAINTS TO BE THE 16:25:40 SUBJECT OF THIS SOFTWARE UPGRADE. 16:25:42 SO IF THE CUSTOMER BRINGS THEIR VEHICLE TO THE DEALERSHIP, WE 16:25:46 WILL PROVIDE THIS SOFTWARE UPGRADE. 16:26:03 ONCE WE COMPLETE ALL THESE UPGRADE WORK, TOYOTA VEHICLE 16:26:07 WOULD BECOME JUST AS SAFE OR SAFER THAN OTHER VEHICLES. 16:26:10 AND I'M VERY CONVINCED OF THAT. >> THANK YOU. 16:26:15 I SEE MY TIME IS EXHAUSTED. THANK YOU VERY MUCH. 16:26:18 I APPRECIATE VERY MUCH THE WITNESSES BEING HERE TODAY. 16:26:21 >> THANK YOU, SENATOR. SENATOR BEGICH. 16:26:25 >> THANK YOU FOR HOLDING THIS AND THANK YOU VERY MUCH FOR 16:26:29 BEING HERE TODAY. I WILL BE PAROCHIAL FOR MY FIRST 16:26:32 QUESTION AND THEN BROADER QUESTIONS TO FOLLOW UP ON MANY 16:26:35 QUESTIONS THAT FOLKS HAVE HERE. I REPRESENT THE STATE OF ALASKA. 16:26:40 MANY OF OUR RESIDENTS LIVE IN RURAL PARTS OF THE STATE WHERE 16:26:43 THERE ARE NO ROADS EXCEPT WHEN THEY GET THERE IN THEIR 16:26:47 COMMUNITY. HOW WILL YOU ADDRESS THE 16:26:48 SERVICING THAT THEY WILL NEED WHEN THEY HAVE TO BARGE THESE 16:26:52 VEHICLES TO THEIR HOME, WHERE THEY PURCHASE THEM FROM A DEALER 16:26:55 HUNDREDS OF MILES AWAY. HOW WILL YOU DEAL WITH THOSE 16:26:58 FOLKS? >> WELL, FIRST OF ALL, WE WILL 16:27:02 ASK OUR DEALERS TO TAKE CARE OF THE CUSTOMERS AS MUCH AS THEY 16:27:06 CAN. SO IT IS IN PRINCIPLE THAT HOW 16:27:10 THEY TREAT THE CUSTOMERS, AND I HOPE THEY WILL TREAT A PROPER 16:27:15 WAY. AND ALSO IF THERE'S ANY SORT OF 16:27:18 SITUATION WHERE A CUSTOMER CANNOT BRING THE CARS TO THE 16:27:24 DEALERSHIP OR AT THE SAME TIME HE HAS ANY CONCERNS, I THINK WE 16:27:28 ALLOW THE DEALERS TO PAY THE COST, IF NECESSARY AND THEN WE 16:27:33 WILL REIMBURSE IT. >> THANK YOU. 16:27:35 VERY GOOD. THAT'S IMPORTANT. 16:27:37 AND I'M A DRIVER OF A TOYOTA. I OWN A HIGHLANDER HYBRID. 16:27:40 I DROVE IT FROM ALASKA TO HERE. 19 DAYS. 16:27:44 5,000 MILES. AND IT DID A GOOD JOB. 16:27:46 NOW TO THE BROADER QUESTIONS THAT SOME HAVE ASKED HERE, I HAD 16:27:50 NOT SEEN THE PRESENTATION THAT SENATOR LEMIUX TALKED ABOUT. 16:27:54 WILL YOU RESPOND TO HIM IN DETAIL ON THE RECORD AT A LATER 16:27:58 TIME, HIS CONCERNS ABOUT THAT DOCUMENT THAT HE PRESENTED IN 16:28:02 THE SLIDE SHOW? >> YES. 16:28:03 >> VERY GOOD. LET ME ASK YOU, IF I CAN, A 16:28:07 COUPLE -- SO I UNDERSTAND THE PROCESS. 16:28:09 I UNDERSTAND YOU HAVE A TEAM LOWER THAN SENIOR MANAGEMENT 16:28:14 THAT MAKES A DECISION ON RECALLS. 16:28:18 WHEN THAT IS BROUGHT TO THAT TEAM FOR DECISION, IS THERE 16:28:24 ANYONE THAT CAN OVERRULE THAT TEAM OUTSIDE OF THAT GROUP? 16:28:32 >> MR. SASAKI WILL BE BETTER. >> THANK YOU. 16:28:46 [ SPEAKING JAPANESE ] [ SPEAKING JAPANESE ] 16:29:33 >> Translator: THE PROCESS IN WHICH THE RECALL DECISION IS 16:29:36 MADE IS, AS I SAID EARLIER, IT'S PURELY REFLECTS THE MARKET 16:29:42 CONDITIONS AND TECHNICAL CAUSE OF THAT PROBLEM. 16:29:46 HOWEVER, THIS PROCESS IS VERY STRICTLY PRESCRIBED WITHIN OUR 16:29:50 COMPANY, SO IF THE DECISION WAS MADE OUTSIDE OF THAT VERY STRICT 16:29:56 RULES, THEN THAT COULD BE REVIEWED BY THE OFFICERS WHO IS 16:30:02 IN CHARGE OF LOOKING AT THAT OPERATION. 16:30:04 ALSO, WE DO HAVE AUDITORS. AND SO GIVEN A CERTAIN PERIOD OF 16:30:08 TIME, THERE WILL BE A NUMBER OF AUDITS CONDUCTED, AND SO THE 16:30:13 AUDITORS WOULD BE ALSO LOOKING OVER IT. 16:30:15 >> VERY GOOD. CAN I HAVE MAYBE, AGAIN, AT A 16:30:18 LATER TIME, FOR THE RECORD, YOU PROBABLY HAVE A WRITTEN POLICY 16:30:20 ON THIS? CAN YOU SUBMIT THAT TO THE 16:30:23 COMMITTEE FOR REVIEW? >> YES, SIR. 16:30:25 >> ALSO, CAN YOU SUBMIT MAYBE, AND I'LL USE A PERIOD OF TIME 16:30:29 SINCE 2006, BECAUSE THAT'S SOME OF THE DISCUSSION HERE OF 16:30:34 RECALLS THAT HAVE BEEN BROUGHT THROUGH THE CHAIN AND THEN AT 16:30:36 ANY POINT WHERE THEY MIGHT HAVE BEEN STOPPED OR NOT MOVED 16:30:40 FORWARD? COULD YOU PROVIDE THAT TO THE 16:30:42 COMMITTEE BASED ON THIS PROCESS THAT I NOW UNDERSTAND? 16:30:45 >> WE WILL TRY TO DO SO, YES. >> THANK YOU VERY MUCH. 16:30:48 LET ME ALSO ASK A QUESTION THAT WAS ASKED EARLIER TODAY IN THE 16:30:52 EARLY SESSION WAS, AS YOU CAN SEE, THE FEDERAL GOVERNMENT HERE 16:30:55 IS VERY INTERESTED IN SAFETY AND SECURITY OF VEHICLES AND HOW 16:31:00 THEY OPERATE. WHAT ON THE -- WHAT IN THE 16:31:03 JAPANESE GOVERNMENT IS GOING ON IN REGARDS TO WHAT THEY SEE 16:31:07 WE'RE DOING HERE. IS THERE A CORRESPONDING ACTION? 16:31:13 WHO WOULD LIKE TO ANSWER THAT? I'LL LEAVE IT TO YOU TO DECIDE 16:31:16 WHO WILL ANSWER THESE. [ SPEAKING JAPANESE ] 16:31:41 >> Translator: THE RECALL SYSTEM IN JAPAN WAS ACTUALLY BROUGHT -- 16:31:44 PUT TOGETHER AFTER LEARNING FROM THE U.S. SYSTEM. 16:31:47 THEREFORE, THE SYSTEM IN JAPAN IS VERY SIMILAR TO THAT IN THIS 16:31:49 COUNTRY. >> BUT IS THE GOVERNMENT OF 16:31:53 JAPAN TAKING ANY ACTION IN REGARDS TO THIS WHAT WE'RE DOING 16:31:56 HERE OR IS THERE ANY ACTION THEY ARE DOING TO FOLLOW UP ON THE 16:32:00 PRODUCTS THAT ARE BEING EXPORTED? 16:32:16 [ SPEAKING JAPANESE ] >> Translator: ACTUALLY IT IS 16:32:26 THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THAT HAS THAT 16:32:35 JURISDICTION OR AUTHORITY TO MAKE SURE THOSE EXPORTED 16:32:38 VEHICLES WOULD BE TAKEN CARE OF OR LOOKED AFTER WELL. 16:32:43 >> I'LL DO THIS ONE MORE TIME. IT JUST MAY NOT BE ABLE TO BE 16:32:47 ANSWERED AT THIS POINT. ARE THEY DOING ANYTHING BASED ON 16:32:49 WHAT'S HAPPENING AT THIS POINT IN THIS COUNTRY WITH THESE 16:32:52 RECALLS. ARE THEY ADDING EXTRA SCRUTINY 16:32:54 TO YOUR COMPANY? [ SPEAKING JAPANESE ] 16:33:19 >> Translator: YES, WE HAVE RECEIVED A NUMBER OF HEARINGS 16:33:23 FROM THE GOVERNMENT, AND THEY ARE WATCHING HOW THIS RECALLS IN 16:33:30 THE UNITED STATES CAME ABOUT AND HOW THIS ACTUAL IMPLEMENTATION 16:33:33 OF THE RECALL OR EXECUTION OF THE RECALL IS BEING CARRIED OUT. 16:33:37 THEY ARE FOLLOWING US VERY CLOSELY. 16:33:39 >> VERY GOOD. I KNOW I AM OUT OF TIME, I 16:33:41 THINK. LET ME ASK JUST ONE LAST 16:33:43 QUESTION. IT'S KIND OF A STATEMENT WITH A 16:33:46 QUESTION. YOU UNDERSTAND THAT THE 16:33:50 REPUTATION OF THE COMPANY AND THE TRUST OF THE COMPANY BY THE 16:33:56 CONSUMER HAS BEEN DAMAGED. AND THAT THE WAY THAT'S REGAINED 16:34:00 IS BY THE WORK YOU DO ESPECIALLY NOW IN THE RECALL BUT ALSO INTO 16:34:03 THE FUTURE. THAT'S A CLEAR UNDERSTANDING. 16:34:07 AT WHAT POINT DOES THE SENIOR MANAGEMENT INVOLVE THEMSELVES OR 16:34:13 SEE REPORTS ON A REGULAR BASIS AND THE AMOUNT OF RECALLS OR 16:34:18 INCIDENTS THAT ARE BEING DRIVEN FROM THE LOWER RANKS OF THE 16:34:22 EMPLOYEE GROUP INDICATING THERE'S PROBLEMS. 16:34:24 DOES THE SENIOR MANAGEMENT SEE THAT ALL THE WAY TO THE BOTTOM 16:34:27 AND UP? AND HOW OFTEN DO YOU SEE THAT? 16:34:31 >> WELL, PERSONAL EXPERIENCE IS THAT I HAVE BEEN INVOLVED SINCE 16:34:34 THE END OF SEPTEMBER, AND I WILL DO -- PAY VERY CLOSE ATTENTION 16:34:41 ABOUT WHAT'S GOING ON WITH ANY TECHNICAL ISSUES THAT ARISES. 16:34:46 AND, THEREFORE, IT WILL BE A LOT MORE ATTENTION PAID FROM NOW ON 16:34:51 BECAUSE THIS LOSS OF TRUST IS MORE COSTLY THAN ANYTHING ELSE 16:34:56 TO TOYOTA. AND SO THAT WE DO UTMOST TO 16:35:02 RESTORE THAT. THAT'S MY COMMITMENT AND ALSO 16:35:05 OTHER MEMBERS' COMMITMENT. >> THANK YOU VERY MUCH FOR YOUR 16:35:07 TESTIMONY. AGAIN, THANK YOU, MR. CHAIRMAN, 16:35:10 FOR HOLDING THE HEARING. >> THANK YOU, SENATOR BEGICH. 16:35:14 NOW SENATOR NELSON. >> MR. DITLOW? 16:35:20 >> YES. >> THERE'S A DEADLINE COMING FOR 16:35:24 MANDATORY USE OF ELECTRONIC DATA RECORDERS, IS THAT RIGHT? 16:35:28 >> THERE IS -- THERE'S A DEADLINE COMING ON THE 16:35:33 STANDARDIZATION. THERE'S NO REQUIREMENT THAT IT 16:35:35 BE INSTALLED. >> IF THERE'S A DEADLINE FOR 16:35:41 STANDARDIZATION, WHY DOES -- WHAT IS YOUR OPINION THAT TOYOTA 16:35:46 STILL USES PROPRIETARY SOFTWARE TO READ OUT THE CONTENTS IF IT'S 16:35:49 GOING TO BE STANDARDIZED? >> THE DATA THAT ARE GOING TO BE 16:35:56 RECORDED WILL BE STANDARDIZED. THERE IS NO STANDARDIZATION ON 16:36:01 THE READ OUT AND MAKING IT COMMERCIALLY AVAILABLE. 16:36:04 SO IT'S A FAILING IN THE RULE THAT'S ABOUT TO BE ISSUED, OR 16:36:07 THAT HAS BEEN ISSUED AND IT'S ABOUT TO BE MADE FINAL. 16:36:10 >> AND YOU THINK THAT NEEDS TO BE CORRECTED? 16:36:12 >> YES. I MEAN, WE NEED TWO THINGS. 16:36:14 WE NEED TO MANDATE THEM IN ALL VEHICLES AND WE NEED THE READOUT 16:36:19 BE STANDARDIZED SO THAT ANYONE CAN READ IT. 16:36:24 >> IS AN EDR PART OF THE AIR BAG ASSEMBLY? 16:36:31 >> THERE IS, IN FACT, A DATA RECORDER THAT'S ASSOCIATED WITH 16:36:35 THE AIR BAG. THE EDR IS A MORE ADVANCED 16:36:37 VERSION AND IT'S CAPABLE OF MEASURING AND RECORDING MORE 16:36:42 FEATURES THAN THE AIR BAG RECORDER. 16:36:46 >> WELL THEN I WOULD LIKE TO ASK T 16:36:53 TOYOTA. DOES TOYOTA'S EDR RECORD, AND 16:36:57 FOR HOW LONG DOES THE EDR RECORD HOW LONG DOES THE 16:37:08 ELECTRONIC DATA RECORDER RECORD THE DATA BEFORE AND AFTER A 16:37:14 CRASH FOR AN AIR BAG? [ SPEAKING JAPANESE ] 16:37:53 >> Translator: THE CURRENT EDR RECORDS THE FIVE MINUTES PRIOR 16:37:57 TO THE CRASH AND TWO MINUTES -- I'M SORRY, FIVE SECONDS PRIOR TO 16:38:00 THE CRASH AND TWO SECONDS AFTER THE CRASH. 16:38:02 IN OTHER WORDS, THE CURRENT SYSTEM IS TO RECORD THE DATA 16:38:08 RELATED TO THE DEPLOYMENT OF THE AIR BAG AND SO WHETHER THE AIR 16:38:12 BAG IS DEPLOYED OR THE BRAKE IS PRESSED VERY HARDLY OVER THE 16:38:19 SECONDARY LEVEL OR ABOVE. SO THAT'S -- 16:38:23 >> MORE THAN 2 G. SO IT'S FIVE SECONDS PRIOR AND 16:38:26 TWO SECONDS AFTERWARDS. >> WHO MADE THE DECISION IN 16:38:33 TOYOTA TO HAVE ONLY ONE LAPTOP IN THE U.S. WITH THE REQUIRED 16:38:40 SOFTWARE TO READ OUT AN ELECTRONIC DATA RECORDER? 16:38:54 [ SPEAKING JAPANESE ] >> Translator: I DO NOT KNOW AT 16:39:18 THIS TIME WHO HAS DECIDED -- WHO RENDERED THAT DECISION. 16:39:22 HOWEVER IF THAT IS NEEDED, I WILL LOOK INTO IT AND THEN 16:39:25 SUBMIT THE NAME LATER. CURRENTLY, WE ARE USING JUST ONE 16:39:29 LAPTOP TO DO THAT BECAUSE WE HAVE BEEN ABLE TO SUBMIT ALL THE 16:39:33 REQUIRED DATA BY USING THIS ONE PIECE OF LAPTOP. 16:39:37 SO I THINK THAT'S HOW WE HAVE BEEN DOING IT. 16:39:40 >> DOES TOYOTA COLLECT AND STORE ALL THE INFORMATION FROM THE 16:39:44 ELECTRONIC DATA RECORDERS IT DECODES? 16:39:58 [ SPEAKING JAPANESE ] >> Translator: RIGHT NOW THE 16:40:17 EVENT DATA READOUT WILL BE DONE WHEN THE CUSTOMER REQUESTS IT OR 16:40:23 POLICE OR COURT OR AGENCIES LIKE NHTSA, THOSE PUBLIC ENTITIES 16:40:31 ISSUES US A WARRANT TO DO THAT. THEN WE WOULD DO SO. 16:40:34 I MEAN, THESE ARE UNDER SEVERAL STATE LAWS. 16:40:47 [ SPEAKING JAPANESE ] >> Translator: AND THEN WE ARE 16:41:03 TRYING TO DO OUR UTMOST SO THAT THESE WORK CAN BE CARRIED OUT 16:41:07 MORE SPEEDY MANNER. WE WILL HAVE 100 UNITS AVAILABLE 16:41:12 AT THE EARLY APRIL AND BY THE END OF APRIL, WE WILL HAVE 150 16:41:16 SUCH UNITS AVAILABLE IN NORTH AMERICA. 16:41:19 INDEED, WE ARE GOING TO HAND OVER THREE SUCH READERS TO NHTSA 16:41:21 TOMORROW. >> OKAY. 16:41:27 THAT'S VALUABLE INFORMATION BUT THAT'S NOT THE ANSWER TO THE 16:41:29 QUESTION. THE QUESTION WAS, DOES TOYOTA 16:41:31 COLLECT AND STORE ALL THE INFORMATION FROM THE ELECTRONIC 16:41:34 DATA RECORDERS IT DECODES? [ SPEAKING JAPANESE ] 16:41:54 >> Translator: IT IS TRUE TOYOTA READS THEM OUT, BUT I'M NOT SURE 16:41:56 AS I SIT HERE TODAY WHETHER TOYOTA KEEPS SUCH RECORDS. 16:42:00 AND I WILL LOOK INTO IT, SENATOR, AND I WILL GET BACK TO 16:42:02 THE COMMITTEE. >> OKAY. 16:42:08 TELL ME WHY DID TOYOTA OFFICIALS IN JAPAN NOT TAKE SERIOUSLY THE 16:42:19 MESSAGES ABOUT SAFETY CONCERNS THAT TOYOTA'S NORTH AMERICAN 16:42:21 OFFICIALS HAD CONVEYED TO JAPAN? [ SPEAKING JAPANESE ] 16:43:02 [ SPEAKING JAPANESE ] >> Translator: IT IS QUITE 16:43:19 UNFORTUNATE THAT YOU HAVE COME TO FORM THAT NOTION, AND I 16:43:24 WONDER IF THAT WAS -- THAT HAPPENED BECAUSE IN THE PAST 16:43:29 WITH REGARDS TO THE FIELD ACTION DECISION-MAKING THAT RELATES -- 16:43:34 RELATES TO THE SAFETY A MEMBER OF OUR NORTH AMERICAN TEAM WAS 16:43:37 NOT FORMALLY INVOLVED. AND, THEREFORE, WE HAVE 16:43:44 RECTIFIED THIS IMMEDIATELY AND NOW WE WOULD INCLUDE SOMEONE WHO 16:43:47 IS MOST KNOWLEDGEABLE OF THE NORTH AMERICAN MARKET SITUATION 16:43:50 TO BECOME ONE OF THE VERY IMPORTANT PANEL MEMBER THAT 16:43:54 WOULD RENDER THE DECISION REGARDING THE FIELD ACTION. 16:44:01 >> SO YOU THINK THAT HEADQUARTERS IN JAPAN TOOK 16:44:05 SERIOUSLY THE MESSAGES OF SAFETY CONCERNS FROM NORTH AMERICA. 16:44:14 IS THAT CORRECT? [ SPEAKING JAPANESE ] 16:44:52 [ SPEAKING JAPANESE ] >> Translator: YES, THAT IS 16:45:05 CORRECT, ALTHOUGH YOU SAY THE JAPANESE HEADQUARTERS. 16:45:07 IN ACTUALITY THAT WHEN THE DECISION WAS RENDERED, THE 16:45:09 PERSON IN CHARGE OF THAT WAS SENT TO THE UNITED STATES AND 16:45:14 LOOKED AT THE SITUATION UNDER OUR GO AND SEE PRINCIPLE. 16:45:17 AND THAT'S HOW OUR DECISIONS HAD BEEN RENDERED. 16:45:20 THEREFORE, IT IS NOT THE CASE IN THE PAST THAT WITHOUT KNOWING 16:45:25 THE SITUATION IN NORTH AMERICAN MARKET PLACE THAT THE DECISIONS 16:45:30 WERE MADE IN JAPAN. >> MR. CHAIRMAN, THANK YOU. 16:45:35 IT'S SAD FOR THE LOSS OF LIFE, BUT IT'S ALSO SAD AS I SAID IN 16:45:39 MY OPENING COMMENTS ABOUT ALL THESE TOYOTA DEALERS WHO NOW IN 16:45:44 THE MIDDLE OF AN ECONOMIC RECESSION, ARE GETTING HIT WITH 16:45:47 A DOUBLE WAMMY BECAUSE PEOPLE HAVE LOST CONFIDENCE IN TOYOTA. 16:45:52 AND NOW ALL OF THESE SMALL BUSINESSES ARE GETTING HURT ALL 16:45:56 THE MORE BECAUSE PEOPLE ARE NOT COMING IN TO BUY CARS IN THEIR 16:46:00 TOYOTA DEALERSHIPS. THANK YOU, MR. CHAIRMAN, FOR THE 16:46:04 GENEROSITY OF YOUR TIME. >> AS ALWAYS. 16:46:08 THANK YOU VERY MUCH, SENATOR NELSON. 16:46:10 I WILL ASK A FINAL QUESTION AND THEN WE'LL MAKE A CLOSING 16:46:16 STATEMENT. I HAVE HERE A SHEET FROM TOYOTA 16:46:19 CALLED THE TOYOTA MANAGEMENT TEAM. 16:46:23 AND IT'S INTERESTING BECAUSE THE PRESIDENT AND MEMBER OF THE 16:46:29 BOARD IS OBVIOUSLY AKIO TOYODA. THERE ARE FIVE EXECUTIVE VICE 16:46:36 PRESIDENTS. THERE ARE INNUMERABLE SENIOR 16:46:39 MANAGING DIRECTORS. AND THERE ARE DIRECTORS, MEMBERS 16:46:42 OF THE BOARD, JUST TWO. AND OF THE FIVE EXECUTIVE VICE 16:46:49 PRESIDENTS, MEMBERS OF THE BOARD DIRECTLY UNDER THE PRESIDENT, 16:46:53 AKIO TOYODA, TWO OF THEM ARE ON OUR PANEL TODAY. 16:46:58 MR. SASAKI AND MR. USHIAMATA. AND THAT'S WHY I THINK THERE IS 16:47:05 SOME, YOU FEEL, OR WE FEEL, WE BOTH FEEL SOME FRUSTRATION IN 16:47:09 TRYING TO COMMUNICATE OUR EFFORT TO GET TO THE BOTTOM OF SOME OF 16:47:15 OUR QUESTIONS. IT'S THE -- IT'S THE QUESTION OF 16:47:21 ACCOUNTABILITY. WHO IS ACCOUNTABLE. 16:47:23 WHO MAKES DECISIONS? MANY QUESTIONS HAVE COME BACK 16:47:28 THAT WE ARE DOING RECALLS AS IF THAT WERE A PROBLEM SOLVER. 16:47:36 AND IT IS NOT NECESSARILY A PROBLEM SOLVER. 16:47:43 WE WILL GET BACK TO YOU ON THAT. THAT IS NOT A DIRECT ANSWER. 16:47:47 I THINK THERE IS MORE KNOWLEDGE AT THE TABLE THAN HAS DISCLOSED 16:47:55 ITSELF. I DON'T SAY THAT RUDELY. 16:47:56 I JUST SAY THAT IN PERHAPS A TYPICAL AMERICAN/JAPANESE 16:48:05 INABILITY TO COMMUNICATE AS EFFECTIVELY AS WE SHOULD ON A 16:48:07 PARTICULARLY IMPORTANT ISSUE BOTH TO US IN TERMS OF SAFETY 16:48:10 AND YOU IN TERMS OF SAFETY AND SOME LOSS OF CONFIDENCE IN YOUR 16:48:18 PRODUCT. BUT YOU KNOW, ALL THE WAY, SINCE 16:48:21 SENATOR NELSON SAID THIS, SINCE AT LEAST 2002, A LONG TIME AGO, 16:48:29 THOUSANDS OF TOYOTA AND LEXUS OWNERS IN THE UNITED STATES HAVE 16:48:35 COMPLAINED TO TOYOTA THAT THEY EXPERIENCED SUDDEN UNINTENDED 16:48:42 ACCELERATION. SO THEY HAVE BEEN DOING THAT 16:48:45 EVER SINCE. THOUSANDS AND THOUSANDS OF THEM. 16:48:48 THESE TOYOTA OWNERS TOLD TOYOTA THE BRAKES WOULD NOT OVERPOWER 16:48:54 THE SURGING VEHICLE. A NUMBER OF THEM HAVE EVEN HAD 16:49:00 SMOKING BRAKES AND MELTED HUBCAPS. 16:49:05 TO PROVE IT I BELIEVE SENATOR KLOBUCHAR MADE THAT POINT. 16:49:10 HOWEVER, TOYOTA, IN THIS PERSON'S JUDGMENT, DID NOT 16:49:13 LISTEN TO ITS CUSTOMERS, AND IT SENT OUT LETTERS LIKE THIS, 16:49:19 WHICH, OBVIOUSLY, NOBODY CAN READ, BUT I CAN, AND I'LL QUOTE 16:49:23 FROM IT. IT'S RATHER COLD. 16:49:26 IT'S RATHER COLD. THE KEY PARAGRAPH SAYS IN ORDER 16:49:32 FOR THIS ACCIDENT TO HAVE OCCURRED AS A RESULT OF 16:49:35 UNINTENDED ACCELERATION, THERE WOULD HAVE TO BE A SIMULTANEOUS 16:49:40 FAILURE OF TWO TOTALLY INDEPENDENT SYSTEMS, NAMELY THE 16:49:44 BRAKE AND THROTTLE SYSTEMS. OUR INSPECTIONS CONFIRM THAT 16:49:49 THESE SYSTEMS WERE PURELY FUNCTIONAL AND, THEREFORE, IT 16:49:53 SIMPLY SORT OF TOSSED OFF THE AGONY OF OWNER. 16:49:59 NOW THE EVIDENCE THAT EVERYONE HAS NOW SEEN POINTS TO THE EXACT 16:50:07 OPPOSITE CONCLUSION. WE HAVE BEEN TRYING GET AT THAT. 16:50:11 WHICH IS THAT BRAKES COULD NOT CONTROL A SURGING VEHICLE. 16:50:17 SO NOW WE ARE TALKING ABOUT ELECTRONIC SYSTEMS, BRAKE 16:50:24 OVERRIDES. YOU MENTIONED OUTSIDE CONSULTANT 16:50:28 CALLED EXPONENT BUT THIS REPORT TESTED ONLY SIX VEHICLES. 16:50:33 IT IS NOT GOOD ENOUGH. NOT GOOD ENOUGH. 16:50:37 SO LET ME GIVE YOU AN EXAMPLE OF ONE PERSON WHO I THINK MAKES THE 16:50:46 POINT. LAST AUGUST, A BILL SHEPHERD OF 16:50:54 MONROVIA, CALIFORNIA, I DO NOT KNOW THE MAN BUT MY STAFF HAS 16:50:58 TALKED TO BOTH HIM AND THE MASTER MECHANIC I'M ABOUT TO 16:51:03 EXPLAIN. THIS PERSON EXPERIENCED AN 16:51:05 INSTANT OF SUDDEN UNINTENDED ACCELERATION IN THE 2004 CAMRY. 16:51:10 THAT WAS A LONG TIME AGO. HE WAS PULLING INTO HIS GARAGE 16:51:15 AT THE TIME. AND THEN JUST -- I GUESS PULLED 16:51:18 BACK INTO THE LIVING ROOM OR SOMETHING. 16:51:20 AND AT FIRST, THE MASTER MECHANIC AT MR. SHEPHERD'S LOCAL 16:51:25 REPAIR SHOP TOLD HIM AS AN N A SENSE YOU INDICATED TO US THAT 16:51:29 IT WAS IMPOSSIBLE, HIS WORDS, THAT THE CAMRY'S ELECTRONIC 16:51:34 SYSTEM CAUSED THE PROBLEM. SAID IT WAS IMPOSSIBLE. 16:51:40 MR. SHEPHERD WAS A STUBBORN MAN. AND HE INSISTED THAT THIS 16:51:47 MECHANIC KEEP RUNNING TESTS BECAUSE HE FELT THAT THERE WAS 16:51:51 SOME OTHER REASON FOR HIS SURGE WHICH HE DID NOT SXLIK WHICH WAS 16:51:58 THREATENING. ABOUT A WEEK LATER, IT TURNS 16:52:00 OUT, THE MECHANIC RAN A TEST AFTER RUNNING TESTS A LOT. 16:52:06 NOT JUST ONCE, NOT JUST TWICE. FOR A PERIOD OF ABOUT A WEEK. 16:52:09 AND HE RAN A TEST AFTER A WEEK AND IN WHICH THE ACCELERATOR 16:52:14 PEDAL SENSOR INDEED FAILED. SO LO AND BEHOLD, IT WAS NOT -- 16:52:23 JUST CHANGED EVERYTHING. IT CHANGED EVERYTHING. 16:52:27 IN OTHER WORDS, THERE WAS A PROBLEM IN THE ELECTRONIC 16:52:33 THROTTLE SYSTEM. MR. SHEPHERD RECORDED HIS 16:52:36 FINDING TO BOTH TOYOTA. THIS IS BACK IN 2004. 16:52:39 TO BOTH TOYOTA AND TO NHTSA AND TO MY TREMENDOUS SORROW I HAVE 16:52:47 TO SAY NEITHER NHTSA OR TOYOTA HAS EVER GIVEN A RESPONSE TO MR. 16:52:53 SHEPHERD. SO SYMBOLICALLY, AND REALLY, I 16:52:58 ASKED YOU TODAY WE HAD TALKED TO BOTH HIM AND TO HIS MASTER 16:53:02 MECHANIC AT LENGTH. I ASK YOU TODAY, WILL YOU BE IN 16:53:07 TOUCH WITH THIS MAN? WE WILL GIVE YOU HIS ADDRESS. 16:53:11 BECAUSE YOU -- WE DIDN'T HAVE A CHANCE TO GET INTO HOW YOU 16:53:15 HANDLED COMPLAINTS. THAT'S SO KEY TO WHAT LEVEL DO 16:53:19 THEY RISE. WHAT DOES THE BOARD KNOW ABOUT 16:53:21 THEM? DOES THE BOARD MEET AS ALL THE 16:53:24 PEOPLE I SUGGESTED? IS THERE AN EXECUTIVE COMMITTEE 16:53:27 WHICH -- HINTED AT IN THE ORGANIZATIONAL TABLE? 16:53:31 HOW DO THESE THINGS COME TO THE ATTENTION? 16:53:34 THAT WAS MY FRUSTRATION, MY FIRST ROUND OF QUESTIONS WHEN I 16:53:38 TRIED TO FIND OUT WHEN WERE THESE DECISIONS CHANGED IF THEY 16:53:43 WERE CHANGED. WHICH THEY WERE BECAUSE YOUR 16:53:46 PRESIDENT ADMITTED TO THAT. SAFETY, TOOK A SECOND SEAT TO 16:53:51 PROFITS. IN JAPANESE CULTURE, IN JAPANESE 16:53:56 CORPORATIONS, THINGS DO NOT HAPPEN BY CHANCE. 16:53:59 THEY HAPPEN BY DECISION. AND I FAILED TO GET AN ANSWER 16:54:07 ABOUT THAT. I REGRET THAT. 16:54:12 BUT YOU MADE THE STATEMENT -- IN A SENSE, THE RECALLS EQUAL DOING 16:54:21 THE JOB PROPERLY. TAKING CARE OF THE SITUATION. 16:54:26 THEN IT WAS SUGGESTED THAT A PUBLIC RELATIONS EFFORT OR IS 16:54:31 THAT REALLY SOLVING THE PROBLEM. THERE WAS NO ANSWER FORTHCOMING. 16:54:39 ONE OF YOU INDICATED THE 20% OF THE OUTSTANDING TOYOTAS IN 16:54:45 AMERICA HAVE BRAKE OVERRIDE SYSTEMS NOW. 16:54:49 BUT THEN YOU MENTIONED THAT BY THE YEAR 2010, PERHAPS THE END 16:54:56 OF IT, IT WILL BE COMPLETED. WHAT WILL BE COMPLETED? 16:55:00 AND I ASK YOU THIS QUESTION. OBVIOUSLY, THE BRAKE OVERRIDE 16:55:05 SYSTEM IS THE SOLUTION. SO YOU HAVE A PROBLEM. 16:55:10 YOU HAVE THE TOYOTAS YOU MAKE FROM THIS POINT FORWARD AND YOUR 16:55:15 TEN PLANTS HERE AND YOU HAVE THE TOYOTAS THAT HAVE ALREADY BEEN 16:55:21 MADE GOING BACK TO THE 2002 OR BEFORE. 16:55:28 IF YOU SAW BY PUTTING IN A BRAKE OVERRIDE SYSTEM THE PLANT -- THE 16:55:33 TOYOTAS THAT ARE MADE FROM THIS POINT FORWARD OR STARTING, LET'S 16:55:37 SAY, A YEAR AGO, THAT'S GOOD. BUT WHY IS A NEW TOYOTA AND A 16:55:46 NEW TOYOTA OWNER LESS IMPORTANT THAN AN OLDER TOYOTA AND A 16:55:54 PREVIOUS OR OLDER TOYOTA OWNER? THEIR LIVES ARE THE SAME, THEIR 16:55:58 VALUE IS THE SAME. HUMAN BEINGS ARE EQUAL IN THEIR 16:56:03 CAPACITY TO BE PROTECTED. AND SO I WILL JUST ASK THIS 16:56:10 QUESTION. IS IT NOT FAIR TO SUGGEST THAT 16:56:16 TOYOTA SHOULD MAKE AN OVERRIDE SYSTEM FOR ALL TOYOTAS? 16:56:25 THE OLDER ONES WHERE THE ELECTRONICS WERE LESS 16:56:29 COMPLICATED IN THE COMPUTER SYSTEM LESS COMPLICATED AS WELL 16:56:32 AS THE NEW ONES WHERE THINGS ARE MORE COMPLICATED. 16:56:35 THEN YOU MIGHT SAY TO ME, THAT'S VERY EXPENSIVE AND I MIGHT SAY 16:56:43 TO YOU THAT SPREAD OUT OVER THE ENTIRE FLEET, THE EXPENSE WILL 16:56:50 BE LESS SUBSTANTIALLY AND I ALSO MIGHT SAY THAT MAYBE THE EXPENSE 16:56:55 DOESN'T MATTER. BECAUSE THESE ARE HUMAN BEINGS. 16:57:02 AND THEY ARE LOYAL CUSTOMERS, AS SHOWN BY THE FACT THEY STILL 16:57:04 HAVE THE TOYOTAS THEY BOUGHT YEARS AGO. 16:57:10 AND FURTHER, I MIGHT ASK YOU THIS QUESTION. 16:57:15 SUPPOSING I WAS -- I BOUGHT A TOYOTA BACK IN CAMRY BACK IN 16:57:22 2004. AND IT WAS AN OLDER SYSTEM. 16:57:26 AND I HAD A SURGE PROBLEM. UNEXPECTED SURGE PROBLEM. 16:57:32 I WAS DEEPLY DISTRESSED BY IT AND I WAS FRAYED TO DRIVE THE 16:57:35 CAR BECAUSE OF MY CHILDREN AND BECAUSE OF MYSELF AND BECAUSE OF 16:57:41 WHOEVER. I TRADED THAT AUTOMOBILE. 16:57:44 I SOLD THAT AUTOMOBILE TO SOMEBODY ELSE. 16:57:47 THAT BRINGS UP A WHOLE NEW QUESTION. 16:57:51 IS IT PROPER TO SAY THAT ONCE THE CAR IS OUT OF THE HANDS OF 16:57:57 THE ORIGINAL PURCHASER, BUT NOW IN THE HANDS OF ANOTHER AMERICAN 16:58:02 OWNER, IT STILL HAS THIS DEFECT OR POTENTIAL DEFECT IN IT. 16:58:08 WHY WOULD ONE TRADE OR SELL A DEFECTIVE POTENTIALLY DEFECTIVE 16:58:12 AND I GO BACK TO THE SHEPHERD CASE WHERE HE WORKED AT IT AND 16:58:16 WORKED AT AND IT FOUND OUT, YES, THERE WAS A DEFECT. 16:58:22 WHY WOULD SOMEBODY BE TRADED OR SOLD DEFECTIVE CAR? 16:58:26 IS THAT MORAL? IS THAT ETHICAL? 16:58:28 IS THAT PROPER? IS THAT GOOD BUSINESS PRACTICE 16:58:32 FOR TOYOTA? NOW I ASKED YOU MANY QUESTIONS 16:58:36 AND I APOLOGIZE FOR THAT. BUT I HAVE SAID WHAT I WANTED TO 16:58:41 SAY. THAT WHAT I THINK WE WANTED TO 16:58:45 GET AND WE HAVE GOTTEN SOME BEHIND OF THAT BUT NOT 16:58:48 EXPLICITLY REAL ANSWERS TO REAL PROBLEMS. 16:58:51 NOT JUST WE ARE DOING A RECALL. AND, THEREFORE, WE WILL SOLVE 16:58:55 THE PROBLEM. BUT WE ARE GOING TO MAKE SURE 16:58:58 THAT EVERY TOYOTA CAR ON THE ROAD IN THE UNITED STATES OF

African American mechanic checking the car’s suspension at an auto repair shop - Automobile industry concepts

Toyota Hearing 2/24/10 Witness : Ray LaHood 14:03:23 that it Mr. Chairman? 14:07:28 end of LaHood finally! Toyota hearing Part II 2/24/10 Mr. Akio Toyoda - Pres and CEO, Toyota Mr. Yoshimi Inaba - Pres and CEO Toyota, North America 14:20:44 witnesses sworn in 14:21:28 Chmn Towns - appreciate the fact that you volunteered to come Toyoda 14:22:23 I love cars as much anyone, love Toyota, I'm here w my family of dealers and friends, take most pleasure providing vehicles that our customers love 14:22:55 in the past few mos customers feel uncertain about safety and I take full responsibility for that* 14:23:40 explain how seriously we take this, appreciation to chmn and issa and other member 14:24:23 philosophy of quality control, I am not perfect, at times we find defects, we always stop and try to find the problem, in name of company, we never run away from our problems or pretend we don't notice them, we aim to cont offering better products for society, core value 14:25:20 the key to making quality products is quality people 14:26:17 what caused recall issue we are facing, for past few yrs expanding rapidly, quite frankly , pace may have been too quick* 14:26:48 first safety, quality, volume, these priorties became confused, listen to customers, we pursued growth over speed 14:27:33 I am deeply sorry for any accidents drivers have experienced, extend condolensces to Saylor family, send prayers do everything to ensure such tragedy never happens again**** 14:28:39 want cars to be safe and customers to feel safe, reaffirm placing safety and quality on highest list of priorties 14:29:07 how we plan to manage quality control going forward 14:30:09 system in which voices around the world reach management, each region make decision, quality advisory group from n America and around the world, invest heavily in quality in U.S. 14:31:07 I will ensure members of management team drive car to see where problem lies, I'm a trained test driver, check the problem and understand safety concern Yoshimi Inaba 14:33:29 taking decisive steps to restore trust, our 172 team members making extraordinary effort to complete current recall, confident w these repairs Toyota among safest on road, advance brake override systems before 2010 14:34:40 top to bottom review of quality control seek input from safety experts, meet or exceed standards, I'll be closely involved in review, ensure we improve dialogue, prompt action to ensure safety 14:35:41 our recent recalls address 5 separate issues, 5.3 mil vehicles affected by one or more recalls, 2 mechanical causes, one inappropriate floor mats can entrap accelerator pedal, pedals that over time grow sticky, solutions are effective and durable 14:38:54 I assure you that nothing matters more than safety and reliable of vehicles our customers drive, making new vehicles better and more reliable putting customers first Chmn Towns 14:39:41 have u told nhtsa everything u know about sudden acceleration problems? 14:40:05 interpreter - fully shared info we have w authorities 14:40:18 fully cooperating 14:40:32 other potential safety defects to regulators? 14:41:00 interpreter, don't know specifics, all info has been shared w authorities 14:47:46 japanese. Towns - is that a yes or a no? Issa 14:51:52 u said good cos fix mistakes, great cos learn from them 14:54:02 we try to remain great co not just good co many measures taking place 14:54:53 full transparency ? 14:56:15 interpreter - I clearly say yes, we intend to exchange and share info setting up system for that purpose, special cmte on global quality Kanjorski 14:57:45 compliment you for coming here to testify, withstood interrogation of cmte, badge of courage 14:59:13 explain whether you're giving your customer the same level of attn as other markets?

Car coiled spring and Shock absorber for service at the auto repair shop

House Oversight and Government Reform Committee holds a hearing on Toyota safety record with Ray LaHood, David Strickland of the NHTSA Mr. Akio Toyoda, Mr. Yoshimi Inaba Other witnesses will include Joan Claybrook, Clarence Ditlow, Sean Kane of the Safety Research and Strategies Inc., and two victims 14:00:00 WERE THEIR SUDDEN ACCELERATION PROBLEMS IN JAPAN, TO YOUR 14:00:03 KNOWLEDGE, IN THIS AREA? >> I'LL GET THAT FOR YOU FOR THE 14:00:07 RECORD? >> I THINK THAT'S VERY 14:00:08 IMPORTANT, WHAT'S HAPPENING IN JAPAN'S MARKETPLACE VERSUS OUR 14:00:11 MARKETPLACE, THE EUROPEAN MARKETPLACE. 14:00:13 THIS IS A VERY, VERY UNLEVEL PLAYING FIELD. 14:00:17 AND I'M QUITE CONCERNED ABOUT THE FACT -- OH, AND I WANTED TO 14:00:20 ASK YOU FOR ONE OTHER PIECE OF INFORMATION FOR THE RECORD. 14:00:23 INSIDE OF NTSA, HOW MANY PEOPLE FROM MARCH 2004, WHICH APPEARS 14:00:28 TO BE THE FIRST YEAR IN WHICH SOME OF THESE COMPLAINTS STARTED 14:00:31 TO COME TO NTSA, HOW MANY PEOPLE ACTUALLY WERE INVOLVED IN THE 14:00:38 ASSESSMENT OF WHAT WAS HAPPENING INSIDE OF NTSA? 14:00:42 A STAFF OF TEN, 20, 50? WHAT WERE THEIR BACKGROUNDS? 14:00:46 HOW LONG DID THEY WORK FOR NTSA, AND WHO HAD THEY WORKED FOR 14:00:51 BEFORE COMING TO NTSA? ARE YOU ABLE TO PROVIDE THAT 14:00:54 INFORMATION FOR THE RECORD? >> WE'LL DO THE BEST WE CAN. 14:00:59 >> IS THERE ANYONE WHO CAN TELL US HOW LARGE IS THE UNIT THAT 14:01:03 ASSESSED THESE RECALLS? HOW MANY PEOPLE ARE WE TALKING 14:01:07 ABOUT? >> WE WANT TO BE ACCURATE ABOUT 14:01:09 OUR INFORMATION. WE'LL GET IT FOR THE RECORD. 14:01:11 >> WE'LL HOLD THE RECORD OWN FOR THE INFORMATION. 14:01:14 THE GENTLEMENWOMAN'S TIME SEX P 14:01:20 -- IS EXPIRED. >> THANK YOU, MR. CHAIRMAN. 14:01:23 >> I NOW RECOGNIZE MR. CLAY. >> ALL THE QUESTIONS I WANTED TO 14:01:27 ASK HAS BEEN ASKED. WE HAVE EXHAUSTED THIS ISSUE 14:01:30 WITH THIS WITNESS, AND I HAVE NO QUESTIONS. 14:01:34 >> THANK YOU. >> THANK YOU VERY MUCH. 14:01:37 ACCORDING TO THE RECORD, I THINK THAT EVERYONE -- DID YOU HAVE -- 14:01:42 EVERYONE HAD AN OPPORTUNITY? >> I WOULD JUST YIELD TO MR. 14:01:46 CUMMINGS FOR HIS QUESTION. >> SURE. 14:01:51 >> JUST ONE THING. YOU SAID SOMETHING THAT 14:01:54 REALLY -- I'M SO GLAD I HAD THE CHANCE TO ASK THIS. 14:02:01 WHO WAS SAFETY DEAF? YOU SAID SOMEBODY WAS SAFETY 14:02:06 DEAF. >> TOYODA. 14:02:13 >> TOYODA WAS SAFETY DEAF. THEN YOU SAID THERE WAS SOME 14:02:16 KIND OF DISCONNECT -- >> LET ME GO BACK AND SAY WHAT I 14:02:22 SAID. MR. TOYODA ASKED ME TO ASSESS 14:02:26 WHAT I THINK WENT WRONG HERE. TWO THINGS. 14:02:30 TOYOTA HAS A NORTH AMERICAN TOYOTA. 14:02:33 THEY'RE GREAT PEOPLE THERE. THEY'RE VERY PROFESSIONAL. 14:02:36 THEY'RE GOOD PEOPLE. WE WORK WITH THEM. 14:02:38 THEY MAKE RECOMMENDATIONS TO JAPAN. 14:02:40 THE DECISIONS ARE MADE IN JAPAN. THE REASON THAT OUR ACTING 14:02:44 ADMINISTRATOR WENT TO JAPAN, BECAUSE HE DIDN'T THINK HIS 14:02:48 MESSAGE WAS GETTING TO JAPAN. SO HE FLEW OVER THERE AND MET 14:02:51 WITH THE TOYOTA PEOPLE AND SAID, LOOK, THIS IS SERIOUS. 14:02:56 LIVES ARE BEING LOST. >> WHEN WAS THAT? 14:02:58 >> NOVEMBER/DECEMBER LAST YEAR. >> OKAY. 14:03:01 >> RIGHT AFTER THAT, THEY STARTED TAKING ACTION. 14:03:03 SO THEN I GET ON THE PHONE WITH MR. TOYODA, AND I SAID, THIS IS 14:03:09 A SERIOUS MATTER. THIS INVOLVES SAFETY, IT 14:03:12 INVOLVES LIVES. SO MY POINT IS THIS. 14:03:14 THEIR BUSINESS MODEL IS THEY HAVE A LOT OF GOOD PEOPLE IN 14:03:18 NORTH AMERICA TOYOTA. BUT THE DECISIONS ARE MADE IN 14:03:22 JAPAN. >> GOTCHA. 14:03:23 ALL RIGHT. THANK YOU. 14:03:25 >> IS THAT IT, MR. CHAIRMAN? OH, I WAS GOING TO SAY, WHAT A 14:03:33 JOY. THE LADY FROM CALIFORNIA, OF 14:03:35 COURSE. >> THE GENTLEMENWOMAN FROM 14:03:39 CALIFORNIA. >> THANK YOU, MR. SECRETARY, FOR 14:03:41 BEING HERE THESE MANY HOURS. I'M GOING TO TRY AND BE QUICK 14:03:45 AND TO THE POINT. I WANT TO TALK ABOUT THE BLACK 14:03:48 BOXES. IF 80% OF THE CARS ALREADY HAVE 14:03:51 BLACK BOXES AND THEY HELP PIECE TOGETHER WHAT HAPPENS DURING THE 14:03:56 LAST FIVE SECONDS OF AN ACCIDENT, WHY NOT MAKE THAT 14:04:01 MANDATORY IN ALL CARS? >> IT'S A GOOD POINT AND IT'S 14:04:03 BEEN RAISED HERE EARLIER. WE'RE GOING TO LOOK AT THAT. 14:04:06 WE REALLY ARE. IT'S A GOOD POINT. 14:04:07 IF IT'S A WAY FOR US TO REALLY MEASURE WHAT HAPPENS, IT'S 14:04:11 SOMETHING WE'RE GOING TO LOOK AT. 14:04:13 >> NOW, AS I UNDERSTAND IT, YOU CAN READ THE BLACK BOXES FROM 14:04:18 SOME OF OUR DOMESTIC MANUFACTURERS -- 14:04:21 >> THAT'S CORRECT. >> -- BUT YOU CANNOT REED THE 14:04:23 BLACK BOXES FROM TOYOTA BECAUSE THEY'RE ENKRIPTD? 14:04:26 >> THAT'S CORRECT. >> SO SHOULDN'T WE REQUIRE THAT 14:04:29 ALL THE BLACK BOXES BE READABLE BY NTSA? 14:04:34 >> YES. >> SO YOU WOULD SUPPORT THAT? 14:04:36 >> YES. >> HAVE YOU HAD A CHANCE TO LOOK 14:04:40 AT JOAN CLAYBURG'S EDR RECOMMENDATIONS, AND IF SO, 14:04:48 WOULD YOU PROVIDE THOSE ANSWERS? >> HER TESTIMONY HERE? 14:04:51 >> YES. >> I HAVE NOT READ HER 14:04:53 TESTIMONY. >> SHE ALSO SUGGESTS THAT THE 14:04:58 ADMINISTRATION NEEDS MORE MONEY FOR THIS. 14:05:00 WOULD YOU SUPPORT THAT? >> WE'RE VERY GRATEFUL THE 14:05:04 PRESIDENTIAL LOUD $66 MILLION FOR '11. 14:05:09 >> HOW MANY SOFTWARE ENGINEERS DO YOU HAVE IN YOUR COMPANY? 14:05:16 >> WE HAVE BETWEEN 20 AND 30,000 ENGINEERS. 14:05:18 >> YOU'LL PROVIDE THAT FOR THE RECORD? 14:05:21 >> OF COURSE. >> WHILE YOU HAVE ELECTRICAL 14:05:25 ENGINEERS, YOU DON'T HAVE SOFTWARE ENGINEERS? 14:05:28 >> WE HAVE ELECTRICAL ENGINEERS. >> IF THIS HAS ALREADY BEEN 14:05:31 ASKED, I APOLOGIZE. IT APPEARS THAT THE CHIP YOU 14:05:35 NEED IN THE COMPUTER SYSTEM IN THESE VEHICLES TO HAVE A BRAKE 14:05:39 OVERRIDE IS REALLY THE SOLUTION. DO YOU CONCUR? 14:05:44 >> MR. LENTZ SAID YESTERDAY AT THE ENERGY AND COMMERCE 14:05:49 COMMITTEE THAT THEY WERE INSTALLING BRAKE OVERRIDE IN 14:05:51 MANY OF THEIR VEHICLES. >> I GUESS MY QUESTION TO YOU 14:05:54 IS, IRRESPECTIVE OF WHAT TOYOTA IS DOING, WOULD YOU LOOK AT IT 14:05:59 TO DETERMINE WHETHER OR NOT THE REQUIREMENT THAT THE BRAKE 14:06:02 OVERRIDE BE ACTUALLY IMPLEMENTED AND INSTALLED IN MORE VEHICLES 14:06:07 THAN TOYOTA'S? >> WE'LL BE HAPPY TO LOOK AT IT. 14:06:12 >> AND YOU'LL LET THE COMMITTEE KNOW AS WELL? 14:06:14 >> YES. >> THANK YOU. 14:06:15 I YIELD BACK. >> THANK YOU. 14:06:20 WE THANK MR. SECRETARY FOR HIS TIME. 14:06:24 >> GOOD TO BE BACK. THANK YOU VERY MUCH. 14:06:25 >> WE'LL HAVE A TEN-MINUTE RECESS AND WE'LL COME BACK WITH 14:06:29 THE SECOND PANEL. WE'RE GOING TO HAVE A TEN-MINUTE 14:06:34 RECESS AND WE'LL COME FORWARD WITH THE SECOND PANEL. 14:08:02 >>> CHAIRMAN A DOLL -- ADOLFHUS TOWNE. 14:08:20 NEXT, AKIO TOYODA TESTIFIES ABOUT THE RECALL OF CARS. 14:08:26 ALSO THE FORMER ADMINISTRATOR OF THE NATIONAL HIGHWAY TRAFFIC 14:08:30 SAFETY ADMINISTRATION. SHE'S ON THE THIRD PANEL AT THIS 14:08:33 HEARING TODAY, ALONG WITH A WOMAN WHO LOST FOUR FAMILY 14:08:37 MEMBERS INVOLVING A TOYOTA CAR. DURING THIS HEARING TODAY, THE 14:08:42 ASSOCIATED PRESS CAME OUT WITH A STORY THAT TOYOTA HAS AGREED TO 14:08:46 GUARANTEE FOR NEW YORK OWNERS OF ITS VEHICLES SUBJECT TO SAFETY 14:08:49 RECALLS THAT IT WILL PICK UP CARS AND TRUCKS AT THEIR HOMES, 14:08:52 PAY FOR OUT-OF-POCKET TRANSPORTATION COSTS AND ALLOW 14:08:57 DRIVERS FREE RENTAL CARS DURING REPAIRS. 14:09:00 THAT'S UNDER AGREEMENT WITH NEW YORK ATTORNEY GENERAL CUOMO, AND 14:09:08 THAT'S IN THE FOURTH SESSION BETWEEN GENERALS AROUND THE 14:09:11 COUNTRY. GOING TO CONTINUE TO WATCH THE 14:09:13 SCENE AROUND THE HEARING ROOM, MEMBERS OF THE MEDIA AND 14:09:18 WITNESSES. >>> THIS HEARING SCHEDULED TO 14:10:38 GET UNDERWAY AGAIN SHORTLY. AKIO TOYODA, THE GLOBAL 14:10:47 PRESIDENT OF TOYOTA, IS SCHEDULED TO TESTIFY NEXT. 14:10:52 THE COMMITTEE IS READY TO TACKLE THE COMPANY FOR WHAT THEY 14:10:56 BELIEVE WAS A LAX ATTITUDE OF SAFETY PROBLEMS. 14:11:00 IN PREPARED TESTIMONY, AKIO TOYODA SAID THE COMPANY GREW TOO 14:11:05 FAST TO KEEP UP WITH SAFETY CONTROLS. BREAK AKIO TOYODA BEGINS TESTIMONY 14:20:11 >>> CHAIRMAN ADOLPHUS TOWNES: OUR SECOND PANEL -- I WOULD LIKE TO INTRODUCE 14:20:21 OUR SECOND PANEL. TESTIFYING ON THIS PANEL, MR. 14:20:26 AKIO TOYODA, PRESIDENT AND CEO OF TOYOTA MOTOR CORPORATION. 14:20:33 AND MR. ANABA, PRESIDENT AND CEO OF TOYOTA MOTORS NORTH AMERICA. 14:20:41 GENTLEMEN, IT IS THE COMMITTEE'S LONGSTANDING POLICY THAT ALL 14:20:46 WITNESSES ARE SWORN IN. PLEASE STAND AND RAISE YOUR 14:20:51 RIGHT HAND AS I ADMINISTER THE OATH. 14:20:58 DO YOU SOLEMNLY SWEAR TO TELL THE TRUTH, THE WHOLE TRUTH AND 14:21:02 NOTHING BUT THE TRUTH? IF SO, ANSWER IN THE 14:21:08 AFFIRMATIVE. LET THE RECORD REFLECT THE 14:21:13 W WITNESSES ANSWERED IN THE 14:21:16 AFFIRMATIVE. YOU MAY BE SEATED. 14:21:19 LET ME BEGIN BY FIRST WELCOMING YOU, AND I REALLY APPRECIATE THE 14:21:24 FACT THAT YOU HAVE COME TO TESTIFY AND THAT, MR. TOYODA, 14:21:30 THAT YOU ACTUALLY VOLUNTEERED TO COME AND TO TESTIFY. 14:21:35 I WANT YOU TO KNOW WE'RE VERY IMPRESSED WITH THAT. 14:21:37 THAT SHOWS YOUR COMMITMENT, OF COURSE, TO SAFETY AS WELL, AND 14:21:42 WE WANT TO APPRECIATE THE FACT THAT YOU VOLUNTEERED TO COME. 14:21:47 MR. NABA, WE WELCOME YOU HERE AS WELL, AND WE'VE HAD 14:21:51 CONVERSATIONS WITH YOU OVER THE PAST FEW WEEKS AND MONTHS. 14:21:54 SO AT THIS TIME, WE WOULD ASK YOU TO -- ACTUALLY, WE WILL GIVE 14:22:03 YOU ADDITIONAL TIME. WE GENERALLY GIVE FIVE MINUTES, 14:22:06 BUT BEING HE IS ALL THE WAY FROM JAPAN, WE'LL GIVE HIM MORE TIME. 14:22:13 SO MR. TOYODA. YES, YOU MAY BEGIN. 14:22:21 >> HIS MICROPHONE. >> THANK YOU, CHAIRMAN TOWNS. 14:22:30 I'M AKIO TOYODA OF TOYOTA MOTOR CORPORATION. 14:22:35 I'D FIRST LIKE TO STATE I LOVE CARS AS MUCH AS ANYONE. 14:22:45 I LOVE TOYOTA AS MUCH AS ANYONE. I'M HERE WITH MY TOYOTA FAMILY 14:22:50 OF DEALERS, TEAM MEMBERS AND FRIENDS. 14:22:53 I TAKE THE MOST PLEASURE IN OFFERING A VEHICLE THAT OUR 14:22:57 CUSTOMERS LOVE, AND I KNOW THAT THE 200,000 TEAM MEMBERS AND 14:23:09 DEALERS ACROSS AMERICA FEEL THE SAME WAY. 14:23:11 HOWEVER, IN THE PAST FEW MONTHS, OUR CUSTOMERS HAVE STARTED TO 14:23:14 FEEL UNCERTAIN ABOUT THE SAFETY OF TOYOTA'S VEHICLE, AND I TAKE 14:23:18 FULL RESPONSIBILITY FOR THAT. TODAY, I WOULD LIKE TO EXPLAIN 14:23:25 TO THE AMERICAN PEOPLE, AS WELL AS OUR CUSTOMERS IN THE U.S. AND 14:23:32 AROUND THE WORLD HOW SERIOUSLY TOYOTA TAKES THE QUALITY. 14:23:36 >> MR. TOYODA, COULD YOU JUST PULL THE MIKE A LITTLE CLOSER TO 14:23:43 YOU? THANK YOU. 14:23:45 >> TODAY I WOULD LIKE TO EXPLAIN TO THE AMERICAN PEOPLE AS WELL 14:23:49 AS OUR CUSTOMERS IN THE U.S. AND AROUND THE WORLD HOW SERIOUSLY 14:23:54 TOYODA TAKES THE QUALITY AND SAFETY OF ITS VEHICLE. 14:23:58 I WOULD LIKE TO EXPRESS MY APPRECIATION TO CHAIRMAN TOWNS 14:24:04 AND RANKING MEMBER ISA AS WELL AS THE MEMBERS OF THE HOUSE 14:24:09 OVERSIGHT AND GOVERNMENT REFORM COMMITTEE FOR GIVING ME THIS 14:24:15 OPPORTUNITY TO EXPRESS MY THOUGHTS TODAY. 14:24:19 I WOULD LIKE TO FOCUS MY COMMENTS ON THREE TOPICS. 14:24:25 TOYOTA'S BASIC PHILOSOPHY REGARDING QUALITY CONTROL, THE 14:24:28 CAUSE OF THE RECALLS, AND HOW WE WILL MANAGE QUALITY CONTROL 14:24:34 GOING FORWARD. FIRST, I WANT TO DISCUSS THE 14:24:39 PHILOSOPHY OF TOYOTA'S QUALITY CONTROL. 14:24:43 I MYSELF, AS WELL AS TOYOTA, AM NOT PERFECT. 14:24:48 AT TIMES WE DO FIND DEFECTS, BUT IN SUCH SITUATIONS, WE ALWAYS 14:24:56 STOP, TRY TO UNDERSTAND THE PROBLEM AND MAKE CHANGES TO 14:24:59 IMPROVE FURTHER. IN THE NAME OF THE COMPANY, IT'S 14:25:06 LONGSTANDING TRADITION AND PRIDE. 14:25:08 WE NEVER RUN AWAY FROM OUR PROBLEMS OR PRETEND WE DON'T 14:25:13 NOTICE THEM. BY MAKING CONTINUOUS 14:25:18 IMPROVEMENTS, WE AIM TO CONTINUE OFFERING EVEN BETTER PRODUCTS 14:25:23 FOR SOCIETY. THAT IS THE CORE VALUE WE HAVE 14:25:26 KEPT CLOSE TO OUR HEARTS SINCE THE FOUNDING DAYS OF THE 14:25:32 COMPANY. AT TOYOTA, WE BELIEVE THE KEY TO 14:25:36 MAKING QUALITY PRODUCTS IS TO DEVELOP QUALITY PEOPLE. 14:25:41 EACH EMPLOYEE THINKS ABOUT WHAT HE OR SHE SHOULD DO, 14:25:47 CONTINUOUSLY MAKING IMPROVEMENTS, AND BY DOING SO 14:25:50 MAKES EVEN BETTER CARS. WE HAVE BEEN ACTIVELY ENGAGED IN 14:25:57 DEVELOPING PEOPLE WHO SHARE AND CAN EXECUTE ON THIS CORE VALUE. 14:26:01 IT HAS BEEN OVER 50 YEARS SINCE WE BEGAN SELLING IN THIS GREAT 14:26:09 COUNTRY, AND OVER 25 YEARS SINCE WE STARTED PRODUCTION HERE. 14:26:13 AND IN THE PROCESS, WE HAVE BEEN ABLE TO SHARE THIS CORE VALUE 14:26:18 WITH THE 200,000 PEOPLE AT TOYOTA OPERATION, DEALERS AND 14:26:23 SUPPLIERS IN THIS COUNTRY. THAT IS WHAT I AM MOST PROUD OF. 14:26:30 SECOND, I WOULD LIKE TO DISCUSS WHAT CAUSED THE RECALL ISSUES WE 14:26:34 ARE FACING NOW. TOYOTA HAS, FOR THE PAST FEW 14:26:40 YEARS, BEEN EXPANDING ITS BUSINESS RAPIDLY. 14:26:43 QUITE FRANKLY, I FEAR THE PACE AT WHICH WE HAVE GROWN MAY HAVE 14:26:50 BEEN TOO QUICK. I WOULD LIKE TO POINT OUT HERE 14:26:54 THAT TOYOTA'S PRIORITY HAS TRADITIONALLY BEEN THE 14:27:03 FOLLOWING. F 14:27:04 FIRST, SAFETY; SECOND, QUALITY; THIRD, VOLUME. 14:27:08 THESE PRIORITIES BECAME CONFUSED AND WE ARE NOT ABLE TO STOP, 14:27:11 THINK AND MAKE IMPROVEMENTS AS MUCH AS WE WERE ABLE TO BEFORE, 14:27:17 AND A BASIC STANCE TO LISTEN TO CUSTOMERS' VOICE TO MAKE BETTER 14:27:22 PRODUCTS HAS WEAKENED SOMEWHAT. WE PURSUED GROSS SPEED AT WHICH 14:27:29 WE WERE ABLE TO DELIVER TO OUR PEOPLE AND ORGANIZATION AND WE 14:27:33 SHOULD SINCERELY BE MINDFUL OF THAT. 14:27:36 I REGRET THAT THIS HAS RESULTED IN THE SAFETY ISSUE DESCRIBED IN 14:27:41 THE RECALLS WE FACE TODAY, AND I AM DEEPLY SORRY FOR ANY ACCIDENT 14:27:49 THAT TOYOTA DRIVERS HAVE EXPERIENCED. 14:27:54 ESPECIALLY I WOULD LIKE TO EXTEND MY CONDOLENCES TO THE 14:27:59 MEMBERS OF THE SAYLOR FAMILY FOR THE ACCIDENT IN SAN DIEGO. 14:28:04 I WOULD LIKE TO SEND MY PRAYERS AGAIN, AND I WILL DO EVERYTHING 14:28:08 IN MY POWER TO ENSURE THAT SUCH A TRAGEDY NEVER HAPPENS AGAIN. 14:28:16 SINCE LAST JUNE, WHEN I TOOK OFFICE, I HAVE CERTAINLY PLACED 14:28:24 THE HIGHEST PRIORITY ON IMPROVING QUALITY OVER QUANTITY. 14:28:29 AND I HAVE SHARED THAT DIRECTION WITH OUR STAKEHOLDERS. 14:28:34 AS YOU WELL KNOW, I AM GRANDSON OF THE FOUNDER AND ALL TOYOTA 14:28:39 VEHICLES BEAR MY NAME. FOR ME, WHEN THE CARS ARE 14:28:44 DAMAGED, IT IS AS THOUGH I AM AS WELL. 14:28:48 I, MORE THAN ANYONE, WISH FOR TOYOTA'S CARS TO BE SAFE AND FOR 14:28:52 OUR CUSTOMERS TO FEEL SAFE WHEN THEY USE OUR VEHICLES. 14:28:57 UNDER MY LEADERSHIP, I WOULD LIKE TO REAFFIRM A VALUE OF 14:29:02 PLACING SAFETY AND QUALITY AS THE HIGHEST ON OUR LIST OF 14:29:09 PRIORITIES WHICH WE HAVE HELD FROM THE TIME WE WERE FOUNDED. 14:29:14 I WILL ALSO STRIVE TO DEVISE A SYSTEM IN WHICH WE CAN SURELY 14:29:18 EXECUTE WHAT WE VALUE. THIRD, I WOULD LIKE TO DISCUSS 14:29:22 HOW WE PLAN TO MANAGE QUALITY CONTROL AS WE GO FORTH. 14:29:27 UP TO NOW, ANY DECISION ON CONDUCTING RECOURSE HAVE BEEN 14:29:34 MADE BY THE CUSTOMER QUALITY ENGINEER DIVISION AT TOYOTA 14:29:39 MOTOR CORPORATION IN JAPAN. THIS DIVISION CONFIRMS WHETHER 14:29:43 THERE ARE TECHNICAL PROBLEMS AND MAKES DECISIONS ON THE NECESSITY 14:29:48 OF RECALL. HOWEVER, REFLECTING ON THE 14:29:51 ISSUES TODAY, WHAT WE LACKED WAS THE CUSTOMER PERSPECTIVES. 14:29:56 TO MAKE IMPROVEMENTS ON THIS, WE WILL MAKE THE FOLLOWING CHANGES 14:30:02 TO THE RECALL DECISION PROCESS. WHEN RECALL DECISIONS ARE MADE, 14:30:07 A STEP WILL BE ADDED IN THE PROCESS TO ENSURE THAT 14:30:11 MANAGEMENT WILL MAKE RESPONSIBLE DECISIONS FROM THE PERSPECTIVE 14:30:17 OF CUSTOMER SAFETY FIRST. TO DO THAT, WE WILL DEVISE A 14:30:25 SYSTEM IN WHICH CUSTOMERS' VOICES AROUND THE WORLD WILL 14:30:28 REACH OUR MANAGEMENT IN A TIMELY MANNER AND ALSO ASSIST THEM IN 14:30:35 EACH REGION AND WE'LL BE ABLE TO MAKE A DECISION AS NECESSARY. 14:30:41 FURTHER, WE FORM A QUALITY ADVISORY GROUP FROM NORTH 14:30:45 AMERICA AND AROUND THE WORLD TO ENSURE THAT WE DO NOT MAKE 14:30:51 MISGUIDED DECISIONS. FINALLY, WE'LL INVEST HEAVILY IN 14:30:54 QUALITY IN THE U.S. THROUGH THE ESTABLISHMENT OF AN AUTOMOBILE 14:30:59 CENTER OF QUALITY EXCELLENCE IN THE PRODUCTION OF NEW DIVISIONS. 14:31:09 SHARING OF MORE INFORMATION AND RESPONSIBILITY WITHIN THE 14:31:12 COMPANY FOR PRODUCT QUALITY DECISIONS, INCLUDING DEFECTS AND 14:31:17 RECALLS. EVEN MORE IMPORTANTLY, I WOULD 14:31:22 ENSURE THE MEMBERS OF THE MANAGEMENT TEAM ACTUALLY DRIVE 14:31:25 THE CARS AND THAT THEY CHECK FOR THEMSELVES WHERE THE PROBLEM 14:31:30 LIES AS WELL AS ITS SEVERITY. I MYSELF AM A TRAINED TEST 14:31:37 DRIVER. AS A PROFESSIONAL, I AM ABLE TO 14:31:39 CHECK A PROBLEM IN A CAR AND CAN UNDERSTAND HOW SEVERE THE SAFETY 14:31:44 CONCERN IS IN A CAR. I DROVE THE VEHICLE IN THE 14:31:53 ACCELERATOR PEDAL RECALL IN THE PRIUS, COMPARING THE VEHICLES 14:32:00 AND DECIDED THE REMEDY WAS THE SETTINGS. 14:32:04 I BELIEVE THAT ONLY BY LOOKING AT THE PRODUCT BY SIGHT CAN YOU 14:32:12 MAKE DECISIONS. YOU CANNOT DECIDE BY A REPORT OR 14:32:17 A MEETING ROOM. WHATEVER RESULTS WE OBTAIN FROM 14:32:21 THE INVESTIGATION WE ARE CONDUCTING IN COOPERATION WITH 14:32:24 NTSA, I INTEND TO FURTHER IMPROVE ON THE QUALITY OF TOYOTA 14:32:31 VEHICLES AND FULFILL THE PRINCIPLE OF PUTTING THE 14:32:35 CUSTOMER FIRST. MY NAME IS ON EVERY CAR. 14:32:39 YOU HAVE MY PERSONAL COMMITMENT THAT TOYOTA WILL WORK VIGOROUSLY 14:32:48 AND QUICKLY TO RESTORE THE TRUST FROM OUR CUSTOMERS. 14:32:53 THANK YOU. >> THANK YOU VERY MUCH, MR. 14:32:57 TOYODA. MR. ANABA? 14:33:00 >> CHAIRMAN TOWNS, MR. ISSA, MEMBERS OF THE COMMITTEE. 14:33:06 THANK YOU FOR INVITING ME TO TESTIFY TODAY. 14:33:09 MY NAME IS YASHIMA INABA, AND I'M THE PRESIDENT AND CEO OF 14:33:16 TOYOTA NORTH AMERICA AND CHAIRMAN AND CEO OF TOYOTA MOTOR 14:33:19 SALES USA. AS YOU HEARD TODAY FROM THE 14:33:25 TOYOTA PRESIDENT, AKIO TOYODA, AND AS THE SUBCOMMITTEE OF 14:33:31 OVERSIGHT INVESTIGATION HEARD YESTERDAY FROM JIM LENTZ, 14:33:35 PRESIDENT AND CHIEF OPERATING OFFICER OF TOYOTA SALES USA, 14:33:40 TOYOTA IS TAKING DECISIVE STEPS TO RESTORE THE TRUST OF THE TENS 14:33:44 OF MILLIONS OF AMERICANS WHO PURCHASE AND DRIVE OUR VEHICLES. 14:33:51 OUR 172 TEAM MEMBERS AND DEALERS ACROSS NORTH AMERICA ARE MAKING 14:33:58 EXTRAORDINARY EFFORTS TO COMPLETE OUR CURRENT RECALLS AS 14:34:03 QUICKLY AND CONVENIENT AS POSSIBLE. 14:34:05 WE HAVE RIGOROUSLY TESTED OUR SOLUTIONS AND ARE CONFIDENT THAT 14:34:09 WITH THESE REPAIRS, THE TOYOTA VEHICLE WILL REMAIN AMONG THE 14:34:14 SAFEST ON THE ROAD TODAY. WE ALSO ARE GOING FURTHER BY 14:34:21 INSTALLING ADVANCE BRAKE OVERRIDE SYSTEMS IN ALL OF OUR 14:34:27 NEW NORTH AMERICAN VEHICLES BEFORE THE END OF 2010, AND IN 14:34:31 AN EXPANDED RANGE OF EXISTING MODELS AS A CUSTOMER CONFIDENCE 14:34:38 MEASURE AND TAKING COMPREHENSIVE STEPS TO ENSURE STRICT QUALITY 14:34:44 CONTROL AND INCREASED RESPONSIVENESS TO OUR CUSTOMERS 14:34:47 AND REGULATORS IN THE FUTURE. AS YOU HAVE HEARD, MR. TOYODA IS 14:34:56 LEADING A TOP TO BOTTOM REVIEW OF OUR GLOBAL QUALITY CONTROL 14:35:00 PROCESSES AND WILL SEEK INPUT FROM INDEPENDENT SAFETY EXPERTS 14:35:03 TO ENSURE THAT OUR PROCESSES MEET OR EXCEED INDUSTRY 14:35:11 STANDARDS. AS HEAD OF TOYOTA NORTH AMERICAN 14:35:15 OPERATION, I WILL BE CLOSELY INVOLVED IN THIS REVIEW, WORKING 14:35:20 WITH A NEW CHIEF QUALITY CONTROL OFFICER FOR NORTH AMERICA. 14:35:24 I WILL ALSO TAKE RESPONSIBILITY FOR ENSURING WE IMPROVE OUR 14:35:30 DIALOGUE WITH SAFETY REGULATORS AND THAT WE TAKE PROMPT ACTION 14:35:34 ON ANY ISSUE WE IDENTIFY TO ENSURE THE SAFETY OF AMERICAN 14:35:42 DRIVERS. IN INVITING ME TO TESTIFY TODAY, 14:35:45 THE COMMITTEE ASKED ME TO ADDRESS SEVERAL ISSUES WITH 14:35:48 REGARD TO OUR RECENT RECALLS. LET ME SUMMARIZE MY ANSWERS 14:35:54 HERE. OUR RECENT RECALLS ADDRESSED 14:35:57 FIVE SEPARATE ISSUES THAT WE HAVE IDENTIFIED WITH CERTAIN 14:36:02 TOYOTA VEHICLES. IN TOTAL, SOME 5.3 MILLION 14:36:10 VEHICLES ACROSS 14 MODELS ARE AFFECTED BY ONE OR MORE OF THESE 14:36:14 RECALLS IN THE UNITED STATES. THE BIGGEST RECALLS ARE FOR 14:36:19 SOLUTIONS OUR ENGINEERS HAVE DEVELOPED WITH REGARD TO TWO 14:36:22 SPECIFIC MECHANICAL CAUSES OF UNINTENDED ACCELERATION. 14:36:31 ONE INVOLVES INAPPROPRIATE ACCESSORY FLOORMATS THAT WHEN 14:36:35 LOOSE OR IMPROPERLY FITTED CAN THEN TRAP THE ACCELERATOR PEDAL. 14:36:42 THE OTHER CONCERNS, ACCELERATOR PEDALS THAT CAN, OVER TIME, GROW 14:36:48 STICKY IN RARE INSTANCES. THE SOLUTIONS WE HAVE COME UP 14:36:52 WITH FOR BOTH THESE INSTANCES ARE EFFECTIVE AND DURABLE. 14:36:56 WITH RESPECT TO POSSIBLE ACCELERATOR ENTRAPMENT BY THE 14:37:00 FLOORMAT, TOYOTA RECENTLY DESIGNED A VEHICLE-BASED CHANGE 14:37:03 THAT DIRECTLY ADDRESSES THE PROBLEM AND ANNOUNCED A SOLUTION 14:37:08 TO THE PUBLIC IN NOVEMBER 2009 AS PARTED OF THE SAFETY 14:37:14 CAMPAIGN. ANNOUNCED ON SEPTEMBER 29th, 14:37:19 2009. OWNERS OF AFFECTED VEHICLES CAN, 14:37:21 IN THE MEANTIME, DRIVE SAFELY BY ENSURING THAT THEY USE ONLY 14:37:28 PROPERLY SECURED, APPROPRIATE FLOORMATS. 14:37:34 WITH RESPECT TO STICKING ACCELERATION PEDAL, A SAFETY 14:37:39 RECALL IN THE UNITED STATES IN JANUARY TO ADDRESS THIS ISSUE. 14:37:43 THE STICKING CONDITION DOES NOT OCCUR SUDDENLY, AND IF IT DOES, 14:37:47 THE VEHICLE CAN BE CONTROLLED WITH FIRM AND STEADY APPLICATION 14:37:52 OF THE BRAKES. WE ARE CONFIDENT THAT VEHICLES 14:37:56 WHOSE DRIVERS ARE NOT EXPERIENCING ANY ISSUES WITH 14:37:59 THEIR ACCELERATOR PEDAL ARE SAFE TO DRIVE AND TOYOTA IS RAPIDLY 14:38:06 COMPLETING THE REPAIRS ON OUR CUSTOMERS' VEHICLES. 14:38:09 IN BOTH THESE CASES, TO THOROUGHLY AND CAREFULLY 14:38:16 EVALUATE TECHNICAL ASPECTS OF THESE ISSUES, HOWEVER, WE NOW 14:38:20 UNDERSTAND WE MUST THINK MORE FROM OUR CUSTOMER'S PERSPECTIVE 14:38:27 RATHER THAN MORE OF A TECHNICAL PERSPECTIVE IN INVESTIGATING 14:38:32 COMPLAINTS AND THAT WE MUST COMMUNICATE FASTER, BETTER AND 14:38:34 MORE EFFECTIVELY WITH OUR CUSTOMERS AND OUR REGULATORS. 14:38:40 OUR RECENT RECALLS OF 2010 PRIUS AND HYBRIDS BRAKING SYSTEM, 14:38:53 CAMRY CARS TO INSPECT THE POWER HOSE AND CERTAIN 2010 TACOMA 14:38:58 TRUCKS TO INSPECT THE FRONT DRIVE SHAFT ALL ILLUSTRATE THIS 14:39:01 NEW APPROACH. CHAIRMAN TOWNS, RANKING MEMBER 14:39:06 ISSA, AND MEMBERS OF THE COMMITTEE, I ENSURE YOU THAT 14:39:09 NOTHING MATTERS MORE TO TOYOTA THAN THE SAFETY AND RELIABILITY 14:39:15 OF THEIR VEHICLES OUR CUSTOMERS DRIVE. 14:39:19 WE ARE COMMITTED TO NOT ONLY FIXING VEHICLES ON THE ROAD AND 14:39:23 ENSURING THEY ARE SAFE BUT TO MAKING OUR NEW VEHICLES BETTER 14:39:27 AND EVEN MORE RELIABLE THROUGH OUR REDOUBLED FOCUS TO PUTTING 14:39:36 OUR CUSTOMERS FIRST. THANK YOU. 14:39:37 >> THANK YOU VERY MUCH. AND LET ME THANK BOTH OF YOU FOR 14:39:42 YOUR TESTIMONY. LET ME BEGIN BY SAYING, HAVE YOU 14:39:47 TOLD NTSA EVERYTHING YOU KNOW ABOUT SUDDEN ACCELERATION 14:39:54 PROBLEMS? HAVE YOU TOLD NTSA? 14:40:05 >> ACCORDING. >> Translator: ACCORDING TO MY 14:40:19 UNDERSTANDING -- ACCORDING TO MY UNDERSTANDING, WE FULLY SHARED 14:40:24 THE INFORMATION WE HAVE WITH THE AUTHORITIES. 14:40:28 >> OUR WASHINGTON OFFICE HAS BEEN ALWAYS IN TOUCH WITH NTSA, 14:40:32 AND WE ARE FULLY COOPERATING WITH NTSA IN ANY INFORMATION 14:40:39 THEY REQUIRE. >> HAS TOYOTA DISCLOSED ALL 14:40:42 INFORMATION ABOUT OTHER POTENTIAL SAFETY DEFECTS WITH 14:40:48 YOUR VEHICLES TO THE REGULATORS? HAVE YOU DONE THAT? 14:41:13 >> Translator: I DO NOT KNOW THE SPECIFICS, HOWEVER, AS I 14:41:16 MENTIONED EARLIER, I DO UNDERSTAND THAT ALL THE 14:41:21 INFORMATION WE HAVE ARE SHARED WITH THE AUTHORITIES. 14:41:27 >> LET ME ASK THIS QUESTION. TODAY ATTORNEY GENERAL ANDREW 14:41:33 CUOMO OF NEW YORK ANNOUNCED AN AGREEMENT WITH TOYOTA, AND THIS 14:41:39 AGREEMENT PROVIDES THAT IF A CUSTOMER MIGHT BE AFRAID TO 14:41:44 DRIVE HIS OR HER CAR SUBJECT TO A RECALL, THE DEALER WILL PICK 14:41:50 UP THEIR CARS, FIX THEM, AND RETURN THEM TO THE CUSTOMERS. 14:41:54 NOW, THE CUSTOMER WILL THEN BE REIMBURSED FOR ANY TAXI OR 14:41:59 RENTAL CAR EXPENSES THAT THEY MIGHT INCUR. 14:42:04 WILL YOU COMMIT TO DOING THIS FOR CUSTOMERS NATIONWIDE? 14:42:18 IF YOU WANT ME TO REPEAT IT, I WILL DO SO. 14:42:22 >> IT'S BEING TRANSLATED. >> CHAIRMAN, LET ME ADDRESS THAT 14:42:40 QUESTION BECAUSE I'M LOCAL HERE. >> I'D BE DELIGHTED. 14:42:44 >> I HEARD A NUMBER OF INSTANCES THAT WHEN THIS RECALL NEWS CAME 14:42:50 OUT, I THINK A NUMBER OF CUSTOMERS WHO WERE VERY AFRAID 14:43:01 AND THE DEALERS TOOK CARE OF CUSTOMERS VERY WELL, AND IN MANY 14:43:05 INSTANCES DEALERS WENT TO PICK UP THEIR CARS AND ALSO GAVE THEM 14:43:10 A TOYOTA RENTAL CAR FOR THE TIME THAT THEY'RE NOT ABLE TO DRIVE. 14:43:17 AND THIS PROCESS WE SEE GOING ON. 14:43:21 I THINK THERE IS A GOOD UNDERSTANDING ON THE PART OF THE 14:43:23 CUSTOMERS THAT THE CARS ARE BEING FIXED WELL AND THEY ARE 14:43:25 CONFIDENT ABOUT THAT. >> MY QUESTION IS, ARE YOU JUST 14:43:28 DOING THIS IN NEW YORK, OR IS THIS SOMETHING THAT YOU'RE GOING 14:43:34 TO DO EVERYWHERE? >> ALL OVER THE WORLD. 14:43:40 I MEAN, ALL OVER THE NATION. NATIONWIDE, YES. 14:43:42 >> I JUST WANT TO MAKE CERTAIN WE HAVE THAT UNDERSTANDING 14:43:46 BECAUSE I UNDERSTAND YOU'RE DOING IT IN NEW YORK. 14:43:48 AND THE LAST QUESTION THAT I HAVE FOR YOU IS THAT, MR. 14:43:55 TOYODA, YOU HAVE OFFERED A BRAKE OVERRIDE FEATURE FOR SOME 14:44:04 RECALLED VEHICLES. WHY HAVEN'T YOU OFFERED THAT 14:44:07 FEATURE FOR ALL TOYOTA VEHICLES? >> Translator: ALLOW ME TO 14:44:31 EXPLAIN THE SITUATION A LITTLE BIT. 14:44:33 >> YOU'LL HAVE TO PULL THE MIKE -- 14:44:39 >> Translator: THE FACT ORZ THAT ARE CONTRIBUTING TO THE SUN R 14:44:42 UNINTENDED ACCELERATION CAN BE PUT IN FOUR CATEGORIES. 14:45:08 FIRST, THE PROBLEM WITH ELECTRONIC SYSTEM. 14:45:13 SECONDLY, THE WAY IN WHICH A CAR IS USED OR MISUSAGE OF A CAR, 14:45:18 AND THIRDLY, THE STRUCTURAL ASPECT OF THE VEHICLE, AND 14:45:21 FOURTHLY, THE STRUCTURAL ASPECT OF THE PARTS USED IN THE 14:45:24 VEHICLE. SO THESE, I UNDERSTAND, ARE FOUR 14:45:27 MAJOR FACTORS CONTRIBUTING TO UNEXPECTED ACCELERATION. 14:45:58 AND OF THAT, THE ELECTRONIC CONTROL SYSTEM IS DESIGNED BASED 14:46:06 UPON THE CONCEPT OF SAFETY FIRST, AND THEREFORE, WHENEVER 14:46:09 THERE IS ANY ABNORMALITY OR ANOMALY THERE IN THAT SYSTEM, 14:46:13 THE FUEL SUPPLIED TO THE SYSTEM IS CUT OFF. 14:46:16 AND EVEN UNDER A VERY VIGOROUS TESTING CONDUCTED INTERNALLY OR 14:46:20 BY NTSA, NO PROBLEM IN MALFUNCTION WAS IDENTIFIED, AND, 14:46:26 THEREFORE, I AM ABSOLUTELY CONFIDENT THAT THERE IS NO 14:46:29 PROBLEM WITH THE DESIGN OF THE ETC SYSTEM. 14:46:56 >> Translator: HOWEVER, PLACING EMPHASIS UPON THE FACT THAT 14:47:01 CUSTOMERS DO HAVE CONCERN AS TO THE POSSIBILITY OF UNEXPECTED 14:47:06 ACCELERATION WHICH MAY RESULT FROM THE REMAINING THREE 14:47:09 REASONS, IN ORDER TO OFFER EXTRA MEASURE OF CONFIDENCE AS THE 14:47:14 CHAIRMAN HAS JUST MENTIONED, WE DECIDED TO ADD BRAKE OVERRIDE 14:47:18 SYSTEM. >> IS THAT A YES OR NO? 14:47:20 THAT'S WHAT I'M TRYING TO GET TO, IF IT'S A YES OR NO. 14:47:53 >> Translator: I YIELD TO CONGRESSMAN ISSA, BUT I'M TRYING 14:47:56 TO FIND OUT, IS THAT A YES OR A NO? 14:48:01 >> LET ME ADDRESS IN A DIFFERENT PERSPECTIVE. 14:48:05 WE ARE -- JUST FOR THE RECORD, WE ARE PUTTING BRAKE OVERRIDE 14:48:09 SYSTEM ON ALL OF THE MODELS FOR NORTH AMERICA COMING OFF THE 14:48:13 LINE BY THE END OF THIS YEAR. AND NOW PROBABLY YOUR QUESTION 14:48:19 IS RETROACTIVELY. WHAT ABOUT THE EXISTING MODELS? 14:48:23 WE HAVE ALREADY ANNOUNCED -- >> THAT'S MY QUESTION. 14:48:28 >> -- AND ES 300 AND IS, THOSE ARE ALREADY INCLUDED IN IT AS AN 14:48:36 ADDITIONAL MEASURE WHEN WE DO THE RECALLS. 14:48:38 AND WE HAVE RECENTLY ANNOUNCED A TACOMA, WHICH HAS A VERY HIGH 14:48:47 COMPLAINT RATE, AND ADD TO IT THE SECORA. 14:48:57 THIS IS PROBABLY 72% OF THE RECALL POPULATION, AND THE REST 14:49:02 OF THEM, TECHNICALLY LITTLE NOT POSSIBLE. 14:49:08 WE DO NOT STOP IT THERE. WE CAREFULLY MONITOR THE 14:49:11 SITUATION. BY THE NEXT YEAR, WITH THIS NEW 14:49:15 MODEL, WITH BLS COMING IN, WITH THESE RETROACTIVE MEASURES, 14:49:22 WE'RE QUITE SURE WE CAN LOWER THE INDUSTRY AVERAGE. 14:49:25 >> I YIELD TO THE GENTLEMAN FROM CALIFORNIA. 14:49:27 >> THANK YOU, MR. CHAIRMAN, AND THE CHAIRMAN HAS PROVEN THAT HE 14:49:32 CAN ASK A QUESTION SO COMPLEX AS TO EVEN BE DIFFICULT FOR PEOPLE 14:49:37 OF YOUR GREAT KNOWLEDGE, AND IT DOESN'T SURPRISE ME. 14:49:41 LET ME ASK IN A DIFFERENT WAY THE SAME QUESTION SO THAT WE ALL 14:49:47 HAVE CLART. MR. ANABA, I WILL PUT THIS TO 14:49:56 YOU. ISN'T IT TRUE IN ORDER TO USE AN 14:49:57 ADVANCE BRAKE OVERRIDE SYSTEM LIKE THIS, YOUR CARS DEPEND ON 14:50:01 ELECTRONIC SYSTEMS, THEY DEPEND ON MICROPROCESSORS AND THEY 14:50:08 DEPEND ON INDEPENDENT CONTROL THE DATA BUS THAT BRAKE HAS BEEN 14:50:12 PUSHED. ISN'T THAT CORRECT? 14:50:15 >> YOU ARE MUCH BETTER THAN I AM. 14:50:21 I BELIEVE SO. >> SO FOR ALL OF US HERE WHO ARE 14:50:25 CONCERNED, OF COURSE, ABOUT FAIL-SAFE AND ACCELERATION 14:50:29 CAUSED BY ELECTRONICS, I THINK -- I'M ASKING YOU, ISN'T 14:50:33 IT FAIR TO SAY THAT ALTHOUGH ELECTRONICS COULD AT TIMES BE A 14:50:37 PROBLEM, AND YOUR PEOPLE HAVE NOT ELIMINATED THAT, THE 14:50:40 SOLUTION IS, IN FACT, ELECTRONICS IN THIS CASE. 14:50:43 AND THAT'S WHAT'S GOING TO GIVE THE HIGHER LEVEL OF SAFETY. 14:50:46 >> WELL, I CAN ONLY SAY THAT THIS IS AN ADDED MEASURE TO A 14:50:52 CUSTOMER CONFIDENCE. AND, OF COURSE, I DO NOT MEAN TO 14:50:56 SAY IT SOLVE ALL THE PROBLEMS. >> YES. 14:50:59 I UNDERSTAND THAT IN THE EARLIER TESTIMONY THERE WERE SOME 14:51:08 Z DISCREPANCIES HOW SECRETARY 14:51:10 LaHOOD WOULD DESCRIBE OCCURRENCE ANDS HOW YOU WOULD. 14:51:12 IS THAT CORRECT THAT YOU WOULD LIKE TO BE ABLE TO CORRECT THE 14:51:14 RECORD ON SOME AREAS OF SECRETARY LaHOOD'S TESTIMONY? 14:51:19 >> I'M NOT QUITE UNDERSTAND WHAT SPECIFIC COMMENTS ARE YOU 14:51:23 REFERRING TO? >> I WOULD WELCOME THAT IF YOU 14:51:25 WOULD LIKE TO, WE WOULD OFFER YOU THE OPPORTUNITY TO SUBMIT 14:51:28 FOR THE RECORD ANY TECHNICAL CORRECTIONS IN WHAT SECRETARY 14:51:31 LaHOOD'S QUESTIONS AND ANSWERS WERE DURING THE EARLIER 14:51:35 TESTIMONY. >> WELL, WE'LL BE GLAD TO FOR 14:51:37 THE RECORD. >> THANK YOU. 14:51:40 AND THEN SKI THAT WE PUT UP THE UNINTENDED ACCELERATION EXHIBIT 14:51:44 THAT I SHOWED EARLIER. AND I PUT THIS UP FOR BOTH OF 14:51:51 YOU BECAUSE IN YOUR CURRENT ADVERTISEMENT ON TV YOU SAID 14:51:56 SOMETHING WHICH I THOUGHT WAS EXTREMELY PROFOUND AND A HIGH 14:51:59 GOAL. YOU SAID THAT GOOD COMPANIES FIX 14:52:03 THEIR MISTAKES AND GREAT COMPANIES LEARN FROM THEM. 14:52:08 IN THE CASE OF THE UNINTENDED ACCELERATION, IN 2007, THERE WAS 14:52:14 A PROBLEM IN THE UNITED STATES FOR WHICH THE FLOOR MATS WERE 14:52:18 CHANGED. THERE WAS A PROBLEM IN JAPAN 14:52:21 WITH A DIFFERENT MODEL BUT SIMILAR IN FLOOR PEDAL IN WHICH 14:52:25 THE TOYOTA PEDAL ITSELF WAS SHORTENED. 14:52:29 AND NOW IN THE CASE OF ALL THESE MODELS, THERE IS AN ELECTRONIC 14:52:34 UPGRADE ADDITIONALLY TO PREVENT AN ACCIDENT LIKE WE HAD IN 2009. 14:52:40 WOULD THAT BE THE OUTCOME TODAY, THE OUTCOME OF THE RECALL 14:52:44 INCLUDING THE ELECTRONICS UPGRADE TO ADVANCED BRAKE 14:52:47 OVERRIDE, IS THAT THE TYPE OF LEARN FROM YOUR MISTAKE THAT WE 14:52:50 CAN EXPECT IN THE FUTURE ON ANY PROBLEM THAT DEVELOPS? 14:53:16 [ SPEAKING JAPANESE ] >> Translator: I DO NOT KNOW THE 14:53:30 SITUATION YOU REFERRED TO ABOUT 2007. 14:53:33 BUT GENERALLY SPEAKING, WHENEVER A PROBLEM OCCURS, TOYOTA 14:53:38 ADDRESSES THOSE PROBLEMS IN THE MOST SINCERE MANNER AND 14:53:43 ATTITUDE. >> MAY I MAKE A COMMENT? 14:53:44 >> YES, PLEASE. >> I CAME TO KNOW JAPAN'S 14:53:50 PROBLEM, TO BE SHAMEFUL, ONLY IN THE PREVIOUS YEAR YOU MENTIONED. 14:53:54 AND THAT WAS THE VERY FIRST TIME THAT I EVER HEARD. 14:53:57 AND, THEREFORE, LET ME LOOK INTO THAT IF IT IS CORRECT OR NOT. 14:54:01 BUT AT THE SAME TIME, I THINK WE'RE A COMPANY THAT WE LEARN 14:54:06 GREAT LESSONS FOR ME FROM THIS INSTANCE AND WE TRY TO DO MORE. 14:54:11 SO I THINK THIS -- YOU KNOW, WE ARE COMMITTED THAT WE TRY TO 14:54:16 REMAIN AS GREAT COMPANY, NOT AT JUST GOOD COMPANY. 14:54:19 SO I THINK WE HAVE A FULL COMPLIMENT OF OUR PRESIDENT. 14:54:23 AND THEN HE HAS JUST SAID AND WE HAVE MANY, MANY MEASURES ALREADY 14:54:28 TAKING PLACE. I DON'T WANT TO GO -- 14:54:30 >> I APPRECIATE THAT. AND I HAVE A COPY OF DOCUMENTS 14:54:33 THAT YOU HAVE PROVIDED TO US CONCERNING THE TOYOTA BLADE 14:54:37 WHICH IS THE JAPANESE ONLY VEHICLE. 14:54:40 AND WE'LL DELIVER THAT TO YOU FOR YOUR FURTHER UPDATE. 14:54:44 MY SECOND AND ONLY OTHER QUESTION, SECRETARY LaHOOD 14:54:49 TALKED ABOUT WANTING TO BUT NOT NECESSARILY HAVING THE 14:54:53 TRANSPARENCY OF WORLDWIDE SALES AND PROBLEMS. 14:54:56 WILL YOU AGREE, MR. TOY IDENTIFY 14:55:03 A -- MR. TOYODA TO BE THE COMPANY 14:55:04 THAT PROVIDES THE U.S. NHTSA WITH FULL TRANSPARENCY OF YOUR 14:55:09 WORLDWIDE OBSERVATIONS AND HELP SET A MODEL FOR ALL THE MAJOR 14:55:14 COMPANIES HERE IN THE U.S.? [ SPEAKING JAPANESE ] 14:56:24 >> Translator: TO THAT QUESTION, I CLEARLY SAY, YES. 14:56:30 IN THE PAST CASES OF RECALL OR PROBLEM HAS SOLUTION IN MAKING 14:56:36 DECISIONS WE BASED OUR DECISION ON TWO ISSUES. 14:56:40 THE TECHNICAL CONSIDERATION AND ALSO WHETHER OR NOT THE 14:56:46 REGULATIONS AND STATUTES IN DIFFERENT PARTS OF THE WORLD ARE 14:56:48 COMPLIED WITH. AND IN THAT SENSE, GOING FORWARD 14:56:53 WE INTEND TO EXCHANGE AND SHARE INFORMATION MORE TIMELY 14:56:58 THROUGHOUT THE WORLD AND WE ARE NOW SETTING UP THE SYSTEM FOR 14:57:02 THAT PURPOSE. AND FOR THAT SPECIFIC PURPOSE, 14:57:05 WE'RE GOING TO ESTABLISH THIS SPECIAL COMMITTEE ON GLOBAL 14:57:10 QUALITY WHICH I PERSONALLY WILL BE HEADING. 14:57:12 AND THAT VERY FIRST MEETING OF THAT WILL BE HELD ON MARCH 30th. 14:57:18 AND FOR THAT PURPOSE, WE ARE NOW SETTING UP THE STRUCTURE WHERE 14:57:22 THE UNITED STATES AND OTHER PARTS OF THE WORLD WILL BE 14:57:25 REPRESENTED IN THE MEETING OF THAT SPECIAL COMMITTEE FOR 14:57:30 GLOBAL QUALITY. AND WE ARE NOW INTRODUCING THIS 14:57:34 SYSTEM SO THAT WE REALLY FACE UP TO THIS PROBLEM OPENLY AND 14:57:39 T TRANSPARENTLY. 14:57:41 >> THANK YOU. THANK YOU, MR. CHAIRMAN, FOR 14:57:45 YOUR INDULGENCE. >> THANK YOU. 14:57:47 >> THANK YOU VERY MUCH, MR. CHAIRMAN. 14:57:50 GENTLEMEN, WELCOME TO THE UNITED STATES. 14:57:53 I HAVE TO COMPLIMENT YOU MR. TOYODA FOR DECIDING TO COME HERE 14:57:57 AND TESTIFY. ACTUALLY, IT'S QUITE A UNIQUE 14:58:01 EXPERIENCE IN TERMS YOU'LL BE ABLE TO BROG ABOUT THE FACT THAT 14:58:05 YOU WITH STOOD THE INTERROGATION OF A CONGRESSIONAL COMMITTEE. 14:58:09 THAT'S A BADGE OF COURAGE IN THE UNITED STATES. 14:58:16 BUT IF YOU HEARD ANY OF THE EXAMINER'S QUESTIONS OF THE 14:58:20 SECRETARY, AND I THINK NOW YOURSELVES, WE'RE A LITTLE 14:58:25 DISTURBED ABOUT SOME THINGS AND I AM, TOO. 14:58:28 ALTHOUGH I'M VERY SYMPATHETIC TO THE FACT THAT WE WANT TO 14:58:31 ENCOURAGE INTERNATIONAL BUSINESS. 14:58:33 WE WANT TO CERTAINLY OPEN OUR MARKETS TO YOUR MANUFACTURING 14:58:36 FROM JAPAN OR YOUR OWNERSHIP OF MANUFACTURING FACILITIES IN THE 14:58:42 UNITED STATES. BUT I THOUGHT I HEARD THIS 14:58:44 MORNING THE SECRETARY SAY THAT YOU HAD A PROBLEM IN JAPAN THAT 14:58:48 WAS DETECTED IN '07 AND THEN SUBSEQUENTLY THE SAME PROBLEM 14:58:57 WAS DETECTED IN EUROPE BUT THERE WAS NO COMMUNICATION OF THAT 14:59:03 PROBLEM OR THE PROSPECT

TOYOTA The House Energy and Commerce Committee, Oversight and Investigations Subcommittee hearing with David Strickland, the administrator of the National Highway Traffic Safety Administration and James Lentz, the President and CEO of Toyota Sales USA entitled "Update on Toyota and NHTSA's Response to the Problem of Sudden Unintended Acceleration" 12:59:55 ADVANCED SAFETY TECHNOLOGIES INCLUDING THE STAR SAFETY 12:59:57 SYSTEM, BRAKE OVERRIDE AND IMPROVED EVENT DATA RECORDERS OR 13:00:02 EDRs THAT WILL READ BOTH PREAND POST CRASH DATA. 13:00:05 OUR DEALERS COMPLETED NEARLY 3.5 MILLION RECALL REMEDIES. 13:00:10 THAT'S MORE THAN 70% OF THE STICKY PEDAL MODIFICATIONS AND 13:00:15 WE'LL CONTINUE TO REACH OUT TO THE AFFECTED OWNERS TO MAKE SURE 13:00:17 THEY BRING VEHICLES TO THEIR DEALERS' ATTENTION. 13:00:20 WE ARE GRATEFUL TO CUSTOMERS FOR THE WAY THEY ARE STANDING BY 13:00:24 TOYOTA. CONSISTENT WITH OUR PLEDGE TO 13:00:26 CONGRESS, WE NOW HAVE 150 EDR READOUT UNITS IN NORTH AMERICA 13:00:31 AND DELIVERED TEN EDR READERS TO NHTSA SO THEY CAN CONDUCT THEIR 13:00:37 OWN DATA RETRIEVAL DURING THEIR INVESTIGATION. 13:00:41 TOYOTA IS WELL ON ITS WAY TO BEING THE FIRST TO FEATURE BRAKE 13:00:47 OVERRIDE TECHNOLOGY AS STANDARD EQUIPMENT ON ALL VEHICLES SOLD 13:00:50 IN THE UNITED ACROSS OUR PRODUCT LINE-UP BY 13:00:55 THE END OF 2010. WE ARE ALSO TAKING THE 13:00:58 EXTRAORDINAIRE STEP OF RETRO-FITTING BRAKE OVERRIDES ON 13:01:02 SEVERAL EXISTING MODELS INVOLVED IN THE RECALLS AS AN ADDITIONAL 13:01:06 MEASURE OF CONFIDENCE FOR CUSTOMERS. 13:01:08 TOYOTA REMAINS CONFIDENCE THAT OUR ET CSI SYSTEM ISN'T THE 13:01:12 CAUSE OFINTENED ACCELERATION. 13:01:18 THEY ARE DESIGNED SO REAL WORLD UNCOMMANDED ACCELERATION CANNOT 13:01:22 OCCUR. WE TEST OUR VEHICLES EXTENSIVELY 13:01:24 TO MAKE SURE THAT THE FAILSAFES AND REDUNDANCIES WORK. 13:01:29 NONETHELESS, WE'RE MAKING A MAJOR SCIENTIFIC EFFORT TO 13:01:32 FURTHER VALIDATE THE SAFETY OF OUR VEHICLES BY OPENING UP OUR 13:01:36 TECHNOLOGY TO AN UNPRECEDENTED LEVEL OF INDEPENDENT REVIEW BY 13:01:40 RESPECTED SAFETY, QUALITY AND ENGINEERING EXPERTS. 13:01:43 THE ENGINEERING AND SCIENTIFIC CONSULTING FIRM EXPONENT HAS 13:01:48 ALREADY COMPLETED MORE THAN 11,000 HOURS OF TESTING AND THE 13:01:54 ANALYSIS OF THE ETCSI SYSTEM AND ITS EVALUATION IS ONGOING. 13:01:59 I HAVE BEEN ADVISED BY SECRETARY SLATER THAT THE QUALITY ADVISORY 13:02:03 PANEL HE CHAIRS WILL INVITE A RIGOROUS PEER REVIEW OF THE 13:02:07 PROCESS AS PART OF ITS ASSESSMENT OF EXPONENT'S 13:02:11 FINDINGS. IT WILL BE ONE OF THE TOPICS OF 13:02:13 DISCUSSION WHEN THE PANEL MEETS WITH MR. TOYODA NEXT WEEK IN 13:02:17 JAPAN. AS MR. TOYODA TOLD SECRETARY LA 13:02:21 HOOD, WE ARE PLEASED TO COOPERATE WITH NHTSA AND WITH 13:02:26 THE ENGINEERS FROM NASA IN THEIR INDEPENDENT EVALUATION OF THE 13:02:31 SYSTEM. WE ALSO COOPERATE WITH THE 13:02:33 NATIONAL ACADEMY OF SCIENCES ON THEIR EVALUATION OF TOYOTA AND 13:02:36 LEXUS VEHICLES AS THEY STUDY THE INDUSTRY-WIDE ISSUE OF 13:02:40 AUTOMOTIVE SAFETY. MEMBERS OF THE COMMITTEE, AT 13:02:43 TOYOTA WE ARE COMMITTED TO DOING MORE THAN JUST CORRECTING 13:02:46 MISTAKES FROM THE PAST. WE'RE LEARNING FROM THEM AND 13:02:50 MAKING MAJOR STEPS TO AVOID THEM IN THE FUTURE. 13:02:53 I'D LIKE TO QUOTE THE WORDS OF MIKE GETZ, A TOYOTA TEAM MEMBER 13:02:57 FOR 22 YEARS FROM GEORGETOWN, KENTUCKY. 13:03:00 IN ONE TEAM ON ALL LEVELS A BOOK WHICH MEANS WHAT IT IS TO WORK 13:03:07 AT OUR PLANT IN KENTUCKY. IT'S WRITTEN BY THE TEAM MEMBERS 13:03:10 OF THE GEORGETOWN PLANT. MIKE WRITES, TOYOTA MAKES 13:03:14 MISTAKES, BUT WE ARE EXPECTED TO TAKE OWNERSHIP TO PREVENT 13:03:22 REOCCURRENCE AND LEARN FROM THEM. 13:03:24 WE JUST DON'T SAY THAT. WE DO THAT. 13:03:26 THAT'S BEEN THE TOYOTA WAY FOR 70 YEARS. 13:03:30 FOR THE FUTURE, BY ACTING SWIFTLY ON SAFETY ISSUES WHEN 13:03:33 THEY ARISE WE ARE DETERMINED TO SET A NEW STANDARD FOR QUALITY 13:03:38 CUSTOMER CARE FOR VEHICLES. OUR GOAL IS TO LEAD THE WAY FOR 13:03:42 OUR INDUSTRY. THANK YOU VERY MUCH. 13:03:43 I'M HAPPY TO ANSWER ANY OF YOUR QUESTIONS. 13:03:47 THANK YOU. THANK YOU AGAIN FOR BEING HERE. 13:03:51 LET ME START -- I ASKED MR. STRICKLAND, SO LET ME ASK YOU 13:03:55 THIS QUESTION. YOU TESTIFIED THAT THE MATS AND 13:03:59 STICKY PEDAL ACCOUNTED FOR 16% OF THE SUDDEN UNINTENDED 13:04:03 ACCELERATION AND THAT'S 84% OF THEM WE HAVE NO ANSWER FOR. 13:04:07 ARE WE ANY CLOSER TO FINDING OUT WHAT ABOUT THE OTHER 84% OF THE 13:04:11 SUDDEN UNINTENDED ACCELERATION, WHAT'S THE CAUSE OF IT? 13:04:14 I THINK IT DEPENDS ON THE DATABASE THAT YOU'RE LOOKING AT. 13:04:18 IN THE CASE OF NHTSA'S DATABASE, IT'S LUMPED TOGETHER AS SPEED 13:04:26 CONTROL. SO IT INCLUDES NOT ONLY EVENTS 13:04:28 OF SUDDEN UNINTENDED ACCELERATION, BUT IT INCLUDES 13:04:33 ANY OTHER TYPE OF SURGE OR HESITATION EVENT. 13:04:36 SO WHEN WE SPOKE LAST, I'M CONFIDENT OF THREE THINGS -- 13:04:44 THAT THE STICKY PEDAL IS BEING REPAIRED. 13:04:47 WE'RE ALREADY ALMOST 70% REPAIRED. 13:04:50 CORRECT. I'M CONFIDENT WE'LL BE UNDER 13:04:52 CONTROL ON THE MATS -- BUT EVEN IF YOU DO 100% MATS, 13:04:56 100% STICKY PEDAL WE HAVE 84% -- AND THESE WERE NUMBERS FROM LAST 13:05:03 TIME. 2,262 SUDDEN ACCELERATION 13:05:11 REPORTS. 19 DEATHS IN THE UNITED STATES. 13:05:16 THE 84% OF THE 2262. SO EVEN IF YOU DID A 100% MATS, 13:05:21 100% STICKY PEDALS WE HAVE 84% WE HAVE NO ANSWER FOR. 13:05:25 YOU TELL US YOU HAVE 11,000 HOURS THAT EXPONENT HAS DONE. 13:05:30 WHAT DID THEY CONCLUDE? WHAT DID THE TESTS SHOW? 13:05:34 WE HAVE NO REPORTS. THEY WON'T GIVE US ANY. 13:05:37 WHAT WAS 11,000 HOURS OF TESTING ON? 13:05:41 ELECTRONICS? COMPUTER? 13:05:42 MICRO PROCESSERS? WE DON'T KNOW BECAUSE EXPONENT 13:05:51 GIVE US THE ANSWERS. QUITE A NUMBER OF QUESTIONS 13:05:55 THERE. FIRST OFF, IN TERMS OF SURGES 13:05:58 AND HESITATIONS, THE POSSIBILITY OF PEDAL MISAPPLICATION, EVEN 13:06:03 THOUGH WE ARE GOING TO DO THESE TWO MECHANICAL FIXES, THOSE ARE 13:06:07 GOING TO EXIST. THEY CAN STILL BE REPORTED TO 13:06:14 NHTSA AS SPEED CONTROLS. THAT'S PART OF THE 84% NUMBER. 13:06:20 IN TERMS OF EXPONENT AND THE SCOPE OF THE WORK THEY PROVIDED 13:06:27 THE COMMITTEE BACK AROUND THE TIME I TESTIFIED. 13:06:31 AN INTERIM REPORT. A VERY SMALL 13:06:34 PORTION OF WHAT THEY ARE TESTING. 13:06:37 I BELIEVE YESTERDAY THEY PROVIDED A SECOND REPORT TO YOU 13:06:43 ALL WITH MORE INFORMATION, BUT THEY ARE TESTING NOT ONLY 13:06:46 VEHICLE ELECTRONICS. THEY ARE TESTING EMI. 13:06:52 THEY ARE TESTING EVERYTHING THAT COULD POSSIBLY CREATE UNINTENDED 13:06:57 ACCELERATION. I GUESS I WOULD AGREE WITH 13:06:59 YOU. YOU COME AND SAY WE'RE DOING 13:07:02 EVERYTHING AND EXPONENT HAS THIS OPEN-ENDED ABILITY TO DO WHAT 13:07:06 NEEDS TO BE DONE. YOU TESTIFIED THERE WAS 11,000 13:07:09 HOURS. WHAT EXPONENT SAYS -- AND ALL WE 13:07:12 HAVE IS FEBRUARY -- IS IT'S IMPORTANT TO NOTE AT THIS STAGE 13:07:15 OF OUR WORK WE NEITHER CLAIM TO HAVE LOOKED AT ALL ISSUES NOR TO 13:07:19 HAVE OPINED ON THE CAUSE OF INCIDENCE OF UNINTENDED 13:07:23 ACCELERATION REPORTED. WE AGREE FURTHER WORK NEEDS TO 13:07:27 BE PERFORMED BEFORE WE REACH SUCH OPINIONS. 13:07:30 WHEN WE ASKED WE RECEIVED TO REPORTS. 13:07:32 JUST SAYING, WORK IS UNDER WAY. IS THIS IN SOME ENGINEER'S HEAD? 13:07:38 NO ONE WRITES DOWN WHAT THEY ARE DOING FOR 1,100 HOURS? 13:07:42 HOW DO YOU PAY THEM. WE HAVE THE PAYMENT SCHEDULE. 13:07:45 $485 FOR THIS PERSON OR THAT PERSON. 13:07:48 HOW IN THE HECK DO YOU KNOW IF YOU'RE GETTING ANYTHING FOR YOUR 13:07:51 MONEY? WELL, YOU KNOW, I AM 13:07:53 CONVINCED THAT IN THE END WHEN WE SEE THE FINAL REPORT AND IT 13:07:59 WILL BE MADE PUBLIC IT WILL BE PEER REVIEWED AND SECRETARY 13:08:03 SLATER IS ALSO GOING TO REVIEW WHAT'S TAKING PLACE. 13:08:10 I'M CONFIDENT WE'LL SEE AN INDEPENDENT REPORT. 13:08:16 WHEN WILL WE SEE A FINAL REPORT? 13:08:18 I DON'T HAVE AN EXACT DATE. WE'RE LOOKING FOR THE END OF 13:08:25 AUGUST. I DON'T THINK THEY HAVE 13:08:26 COMMITTED TO ME A GIVEN DATE. BUT I WILL TELL YOU IN THE CASE 13:08:31 OF EXPONENT, YOU'RE RIGHT. I HAVE LISTENED TO THE COMMENTS 13:08:36 OF THE PAST THAT THEY WERE REPORTING THROUGH PRODUCT 13:08:40 LIABILITY ATTORNEYS. THAT CHANGED THIS WEEK. 13:08:51 EXPONENT IS NOW REPORTING TO STEVE ST. ANGLO AND ALL OF THE 13:08:56 WORK WILL REPORT THROUGH STEVE. I KNOW WE HAVE A CONFERENCE CALL 13:09:00 AS WE DO EVERY WEEK WITH THE STEVE, BEING HE'S FROM THE 13:09:08 MANUFACTURING SIDE HE'S GOING TO DEMAND WE HAVE A WORK PROCESS 13:09:12 WITH EXPONENT GOING FORWARD. AS SOON AS WE HAVE THAT, YOU 13:09:15 WILL HAVE THAT. OKAY. 13:09:21 YOUR COUNSEL HAS INDICATED THAT EXPONENT'S CONTRACT DIDN'T 13:09:24 CHANGE AT ALL. WILL THIS BE A NEW CHANGE OR 13:09:27 WILL IT BE REDUCED TO WRITING ABOUT HOW THEY ARE GOING TO GET 13:09:32 THIS TO YOUR SAFETY? A LETTER HAS GONE TO EXPONENT 13:09:38 FROM STEVE -- WHEN YOU GET A CHANCE WILL 13:09:40 YOU GET IT TO THE COMMITTEE. CAN WE SEE THE DOCUMENT? 13:09:43 IT WAS SUBMITTED WITH OUR WRITTEN STATEMENT. 13:09:47 LET ME ASK YOU ONE LAST QUESTION. 13:09:50 IS THERE GOING TO BE A RECALL TOMORROW ON THE LEXUS LS 13:09:54 VEHICLES? I DON'T KNOW FOR CERTAIN THE 13:09:56 TIMING. BUT THERE IS GOING TO BE A 13:09:58 RECALL ON A STEERING PROBLEM? YES. 13:10:01 IT IS BECAUSE OF THE EXPERIENCE IN JAPAN. 13:10:05 THE STEERING COMPONENT THAT CREATES THIS IS STANDARD IN 13:10:10 JAPAN ON LSs. IT IS A COMPUTER-DRIVEN 13:10:13 STEERING ISSUE. IT IS. 13:10:14 HAVE WE HAD COMPLAINTS IN THIS COUNTRY ABOUT STEERING? 13:10:17 WE HAVE NOT. NOW THAT JAPAN HAS HAD THE ISSUE 13:10:20 WE ARE COMBING THROUGH OUR FILES TO SEE IF THEY HAVED WITH 13:10:25 ANYTHING. IT'S ON ROUGHLY 50% OF THE LSs 13:10:29 IN THE UNITED STATES. IT'S NOT STANDARD LIKE IT IS IN 13:10:32 JAPAN. ABOUT 3800 VEHICLES? 13:10:34 2500 THAT HAVE BEEN SOLD AND 1400 IN DEALER STOCK OR ON THE 13:10:40 WAY TO US THAT COULD BE IMPACTED. 13:10:43 MR. BURGESS, QUESTIONS? THANK YOU. 13:10:46 MR. LENTZ, THANKS FOR BEING WITH US THIS AFTERNOON. 13:10:52 CHAIRMAN STUPAK'S OPENING STATEMENT MADE A LOT OF 13:10:58 REFERENCE TO POLLING. WOULD YOU CARE TO RESPOND TO 13:11:05 SOME OF THE STATEMENTS MADE IN THE OPENING STATEMENT BY THE 13:11:08 CHAIRMAN OF THE SUBCOMMITTEE? WE HAVE THE POLLING COMPANY 13:11:17 AND I CANNOT RECALL THEIR NAME NOW. 13:11:19 THEY HAVE DONE POLLS FOR US FOR THREE YEARS. 13:11:21 BENNETT'S STRATEGY? YES. 13:11:24 THEY HAVE DONE POLLS FOR THE LAST THREE YEARS. 13:11:27 THEY HAVE PROBABLY DONE AT LEAST TWO DOZEN POLLS IN THE PAST. 13:11:32 THE POLL THAT'S IN QUESTION WAS DONE SOON AFTER MY TESTIMONY. 13:11:40 IT WAS DONE SOON AFTER THE EXPOSE RAN ABOUT UNINTENDED 13:11:45 ACCELERATION. THERE WERE QUESTIONS ABOUT DR GILBERT AND ABC NEWS 13:11:48 DR. GILBERT AND ABC. THERE WERE A LOT OF OTHER 13:11:51 QUESTIONS OF THE THINGS MEASURED AS WELL. 13:11:53 YES, WE DID RESEARCH POLLING ABOUT THE WORK DONE BY DR. 13:12:01 GILBERT. IF IT'S NOT PROPRIETARY CAN 13:12:04 YOU GIVE US AN IDEA OF THE POLLING SAMPLE SIZE? 13:12:06 I BELIEVE IT WAS AROUND 1,000. 13:12:09 I MAY NOT BE EXACT. IT WAS 980, 990. 13:12:14 AND YOU WOULD HAVE NO REASON TO PUBLICALLY STATE THE FACT 13:12:17 YOU'RE DOING A POLL. TYPICALLY A COMPANY WOULD NOT 13:12:21 PUBLICIZE THAT IT'S POLLING BECAUSE IT MIGHT INFLUENCE THE 13:12:25 POLL. CORRECT. 13:12:26 YOU DID THIS IN RESPONSE TO THE ABC NEWS PIECE. 13:12:31 SIT UNUSUAL FOR YOUR COMPANY TO DO POLLING RELATED TO OTHER 13:12:36 ISSUES OF THE DAY THAT MAY RELATE TO YOUR PARTICULAR 13:12:39 INDUSTRY? I THINK IT IS. 13:12:41 I THINK THE ABC NEWS PIECE WAS UNUSUAL AS WELL. 13:12:46 IT WAS A CLEAR ATTACK ON THE REPUTATION OF THE COMPANY AND 13:12:54 REALLY CAST DOUBT ABOUT THE THROTTLE CONTROL SYSTEM. 13:12:58 SO WE FELT IT WAS VERY, VERY IMPORTANT TO OUR CUSTOMERS, OUR 13:13:04 DEALERS. SIR, IF YOU DIDN'T MAKE IT 13:13:06 PUBLIC AND IT WAS OBVIOUSLY IN YOUR BEST INTEREST NOT TO GO 13:13:11 PUBLIC WITH THE INFORMATION, WHO DID? 13:13:13 MADE WHICH PUBLIC? THE POLL ON THE ABC NEWS 13:13:19 PIECE. I DON'T KNOW THE ANSWER TO 13:13:22 THAT. YOU DID NOT AND YOUR 13:13:24 COMPANY -- NOT TO MY KNOWLEDGE. 13:13:26 SO IT WAS LEAKED TO A USUALLY RELIABLE SOURCE. 13:13:29 POSSIBLY, I DON'T KNOW. AT THE TIME WE WERE DOING THAT 13:13:35 POLLING WE DIDN'T KNOW HOW MUCH DAMAGE THE ABC REPORT HAD DONE 13:13:40 TO OUR REPUTATION AND WE WERE CONTEMPLATING WHETHER OR NOT WE 13:13:43 WOULD HAVE TO DO NEWSPAPER ADVERTISING TO EXPLAIN OUR SIDE 13:13:46 AND THE RESULTS OF THE POLLING INDICATED THAT CONSUMERS DIDN'T 13:13:51 KNOW MUCH ABOUT WHAT THEY SAID AND DIDN'T CARE ABOUT IT. 13:13:54 SO WE DIDN'T END UP DOING ANYTHING ABOUT IT. 13:13:58 YOU ASKED YOUR REPRESENTATIVE TO REPLICATE THE CONDITIONS THAT 13:14:06 PROFESSOR GILBERT GAVE TO US HERE IN COMMITTEE. 13:14:08 WAS THAT DECISION MADE BEFORE YOU COMMISSIONED THE POLL FROM 13:14:14 THE STRATEGY GROUP? THAT ACTUALLY TOOK PLACE THE 13:14:20 EVENING BEFORE MY TESTIMONY. WHEN WE FOUND OUT24 ABC WAS 13:14:25 RUNNING THAT, EXPONENT WORKED THAT NIGHT TO SEE HOW MANY OTHER 13:14:29 VEHICLES THEY COULD REPLICATE. THAT WOULD HAVE BEEN BEFORE THE 13:14:31 POLLING. DID YOU RECEIVE INFORMATION 13:14:40 BASED ON THE POLLING? SOME OF THE ADVERTISING IN 13:14:43 TERMS OF TOYOTA IN AMERICA HAS BEEN RUN BASED ON SOME OF THE 13:14:46 POLLING INFORMATION, BUT TO MY UNDERSTANDING WITH REGARD TO 13:14:51 GILBERT & CANE, I DON'T BELIEVE WE HAVE RUN ANYTHING ON THAT. 13:14:54 WE HAVE HAD TALK ABOUT THE BRAKE OVERRIDES AND FIXES FOR 13:14:58 THE SUDDEN UNINTENDED ACCELERATION LAST FALL YOUR 13:15:06 COMPANY ANNOUNCED IT WILL BE INTRODUCING A BRAKE OVERRIDE ON 13:15:10 CERTAIN MODELS. WILL THIS COVER ALL TOYOTA 13:15:13 MODELS THAT WERE THE SUBJECT OF UNINTENDED SUDDEN ACCELERATION, 13:15:18 GOING BACK AND INSTALLING THE BRAKE OVERRIDE SYSTEM? 13:15:22 NOT ON EVERY VEHICLE. THE FIRST CUT TO DECIDE WHERE WE 13:15:25 WOULD PUT THOSE WERE REALLY ON ALL VEHICLES THAT HAD THE PUSH 13:15:30 BUTTON START-STOP. SO CAMRY IS AN EXAMPLE. 13:15:33 WE PUT IT ACROSS THE ENTIRE LINE. 13:15:36 SAME WITH I.S., E.S. AND AVALON. WE THEN TOOK A SECOND CUT AND 13:15:44 TOOK A LOOK BASED AT NHTSA'S SUDDEN ACCELERATION. 13:15:50 WHAT OTHER VEHICLES MIGHT WE ADD FOR ADDITIONAL CONSUMER 13:15:53 CONFIDENCE? WHY NOT ALL MODELS FOR 13:15:55 CONSUMER CONFIDENCE? IT'S AN ADDITIONAL EIGHT 13:15:58 MILLION VEHICLES. IN SOME CASES, SOME OF THE 13:16:01 MODELS, WHEN YOU LOOK AT THE NHTSA DATABASE ACTUALLY HAS A 13:16:05 MUCH LESS THAN AVERAGE INCIDENT RATE OF SUDDEN ACCELERATION. 13:16:10 IT'S NOT THE SAME ACROSS ALL VEHICLES ON THE TOYOTA OR LEXUS 13:16:15 SIDE. I THINK PART OF IT IS THE 13:16:17 TREMENDOUS AMOUNT OF ENGINEERING RESOURCE AND TIME IT TAKES TO DO 13:16:21 THAT. YOU'RE TRYING TO REBUILD 13:16:24 CONSUMER CONFIDENCE AFTER A VERY DAMAGING SERIES OF EVENTS THE 13:16:27 PAST EIGHT MONTHS. IT SEEMS LIKE IT WOULD MAKE 13:16:30 SENSE IF THAT'S THE WAY TO REPAIR CONSUMER CONFIDENCE, ADD 13:16:34 THE FEATURE AND NONE OF THE REST OF US HAVE TO WORRY. 13:16:38 WOULD THE BRAKE OVERRIDE SYSTEM PREVENT EVERY AND ALL INSTANCE 13:16:42 AND TYPE OF SUDDEN UNINTENDED ACCELERATION? 13:16:45 IT ONLY WORK IFS YOU STEP ON THE BRAKE. 13:16:49 OKAY. LET ME ASK YOU THIS IF I COULD. 13:16:55 YOU'VE BEEN VERY INDULGENT. I WANT TO SAY AT LEAST IN MY 13:17:00 PART OF THE WORLD THAT YOUR DEALERSHIPS HAVE DONE AN 13:17:03 EXCELLENT JOB OPENING EARLY, STAYING LATE. 13:17:09 I HAVE HAD MY OWN EXPERIENCE WITH YOUR DEALERSHIP IN LIEU 13:17:15 WISVILLE. I THINK THEY HAVE DONE WELL BY 13:17:18 YOUR COMPANY IN WHAT WAS A TOUGH TIME. 13:17:20 THEY STEPPED UP, MET THE CHALLENGE AND HAVE TAKEN IT -- 13:17:25 MET IT HEAD ON. SO YOUR DEALERS IN THE TEXAS 13:17:31 AREA ARE DOING A TREMENDOUS JOB. THANK YOU. 13:17:34 THEY UNDERSTAND THE VALUE OF TAKING CARE OF CUSTOMERS. 13:17:39 THANK YOU. MR. CHAIRMAN, MR. WAXMAN FOR 13:17:47 QUESTIONS PLEASE. I'M STILL CONFUSED. 13:17:53 AS I HEAR YOU SAYING EXPONENT IS CONTINUING TO DO RESEARCH FOR 13:17:56 YOU BUT NOT FOR THE TRIAL LAWYERS. 13:17:58 THEY WILL DO IT FOR ONE OF YOUR CORPORATE EXECUTIVES. 13:18:02 I DON'T THINK THEY ARE MUTUALLY EXCLUSIVE. 13:18:05 AS IT HAS EVOLVED -- SO THEY ARE STILL DOING 13:18:08 RESEARCH? YES. 13:18:09 YOU TOLD THEM TO DO A COMPREHENSIVE EVALUATION, SPARE 13:18:14 NO BUDGET, DO EVERYTHING THAT NEEDS TO BE DONE. 13:18:17 HAVE THEY COMPLETED THEIR RESEARCH? 13:18:20 NO. WHEN YOU WERE HERE LAST THEY 13:18:24 HAD DONE AN INTERIM REPORT. THAT'S ALL WE HAD AT THAT POINT. 13:18:28 THE INTERIM REPORT DIDN'T TELL US MUCH, YET YOU AND -- WELL, 13:18:35 OTHERS FROM TOYOTA ASSURED THE AMERICAN PEOPLE THAT IT IS NOT 13:18:44 THE WHOLE ELECTRONIC SYSTEM THAT COULD POSSIBLY BE THE CAUSE OF 13:18:48 THE SUDDEN ACCELERATION. HOW COULD YOU BE SO SURE ABOUT 13:18:53 THAT? THE ONLY WAY WE CAN BE SURE 13:18:55 AND I'M MORE CONFIDENT TODAY THAN I WAS IN THE PAST. 13:18:58 WE KNOW THAT WE DO A LOT OF WORK AND A LOT OF RESEARCH BEFORE WE 13:19:03 PUT THE VEHICLES ON THE ROAD. I KNOW YOU WILL HAVE ADDITIONAL 13:19:08 QUESTIONS ON THAT. TODAY AS THE SMART TEAMS ARE 13:19:12 GOING OUT AND INVESTIGATING THESE -- 13:19:16 WE WERE TOLD THAT YOU WERE RELYING ON EXPONENT'S RESEARCH 13:19:22 AND CONCLUSIONS, BUT YOU WEREN'T RELYING ON THEIR CONCLUSIONS 13:19:26 BECAUSE THEY STILL HAVEN'T FINISHED THE REPORT. 13:19:29 NO. SO YOU ARE RELYING ON WHAT 13:19:31 YOU WERE TOLD ABOUT THE WORK THAT WAS BEING DONE IN JAPAN 13:19:34 BEFORE THE PRODUCTS WERE PUT INTO PRODUCTION. 13:19:38 YES. I RAISED CONCERNS ABOUT THAT 13:19:40 IN MY OPENING STATEMENT. LET'S GO BACK TO EXPONENT. 13:19:46 IT'S BEEN HELD OUT TO US THAT EXPONENT HAS PUT THIS ISSUE TO 13:19:51 REST. THAT'S WHY EXPONENT IS DOING 13:19:54 THIS WORK. I JUST CAN'T UNDERSTAND WHY 13:19:58 YOU'RE SO ABSOLUTELY CERTAIN -- YOU SAY YOU'RE EVEN MORE CERTAIN 13:20:01 NOW THAN YOU WERE THEN BUT YOU HAVE EXPONENT'S REPORT. 13:20:06 YOU WILL HAVE IT PEER REVIEWED. WHY ARE YOU BOTHERING TO DO IT 13:20:09 IF YOU'RE CONVINCED BASED ON THE OTHER WORK YOU'RE DOING? 13:20:12 WE WANT TO ENSURE THE PUBLIC AND OUR CUSTOMERS THAT THEY HAVE 13:20:17 THE CONFIDENCE THAT THIS HAS BEEN REVIEWED INDEPENDENTLY, 13:20:22 SCIENTIFICALLY, PEER REVIEWED EVEN HAVING SECRETARY SLATER 13:20:30 REVIEW THE PROCESS. FORMER SECRETARY SLATER. 13:20:32 YES, I'M SORRY. WELL, WE HEARD FROM THE HEAD 13:20:35 OF NHTSA, MR. STRICKLAND. HE DOESN'T FEEL HE CAN RELY ON 13:20:43 WHAT HE KNOWS OF EXPONENT'S WORK. 13:20:45 EXPONENT SEEMS TO BE WORKING FOR THE LAWYERS. 13:20:52 EVERYTHING THAT THEY HAVE SHOWN US BY WAY OF DOCUMENTS GIVES US 13:20:56 NO SENSE THAT THEY HAVE COME TO ANY CONCLUSION. 13:20:58 IN FACT, WE HAVE NO SENSE THEY ARE LOOKING AT THE ISSUE BECAUSE 13:21:03 THEY DON'T EVEN HAVE IT ON THE LIST OF THINGS THAT THEY ARE 13:21:08 EVALUATING. IF EXPONENT IS DOING THE JOB YOU 13:21:10 DESCRIBE IN YOUR TESTIMONY PROVIDING A COMPREHENSIVE 13:21:14 ASSESSMENT IT PRESUMABLY WOULD BE UNDERTAKING A COMPLICATED 13:21:18 MULTI DISCIPLINARY INVESTIGATION INVOLVING NUMEROUS ROUNDS OF 13:21:22 TESTING AND ANALYSIS. BUT DR. SUREY TOLD THE STAFF AT 13:21:29 ANY TIME 10 TO 25 PEOPLE COULD BE WORKING ON THE TOYOTA PROJECT 13:21:33 AND THERE IS NO WRITTEN COMMUNICATION AMONG THESE 13:21:37 PEOPLE. THERE IS NOTHING BY WAY OF 13:21:39 WRITTEN NOTES. SCIENCE IS WHAT WE NEED TO HAVE 13:21:44 EVALUATED. SO JUST RAISE THAT ISSUE. 13:21:47 I STILL AM NOT SATISFIED BECAUSE YOU'RE NOW RELYING ON SOMETHING 13:21:52 OTHER THAN EXPONENT TO GIVE YOU THAT CERTAINTY. 13:21:55 I WANT TO ASK YOU A DIFFERENT QUESTION BEFORE MY TIME IS UP. 13:21:58 THAT'S THIS QUESTION OF THE BRAKE OVERRIDE. 13:22:00 WHY ARE YOU DOING A BRAKE OVERRIDE? 13:22:05 WHAT'S THE PURPOSE? TO HELP WITH ADDED CONSUMER 13:22:07 CONFIDENCE ON OUR PRODUCTS. IS IT FOR SAFETY? 13:22:11 I THINK FOR SOME PEOPLE IT COULD BE SAFETY. 13:22:14 I CAN'T SPEAK FOR ALL THE CONSUMERS TO SAY 100% OF THE 13:22:18 CONSUMERS WILL SEE IT -- NOT HOW THEY SEE IT. 13:22:21 I DON'T CARE HOW THEY SEE IT. WILL IT MAKE CARS SAFER? 13:22:25 THERE ARE OTHER REDUNDANCIES WITHIN A CAR TODAY THAT WILL 13:22:29 MAKE THAT CAR STOP. TODAY, EVEN AT FULL THROTTLE, 13:22:33 FULL BRAKE PRESSURE -- SO YOU DON'T THINK THERE IS A 13:22:35 SAFETY NEED FOR IT. I BELIEVE THERE IS. 13:22:38 OTHERWISE WE WOULDN'T BE PUTTING IT ON FUTURE MODELS BUT IT ADDS 13:22:43 FUTURE -- IT SEEMS YOU'RE SAYING IT 13:22:46 WILL MAKE PEOPLE FEEL BETTER. THAT'S CONSUMER CONFIDENCE. 13:22:50 BUT ARE YOU WILLING TO SAY IT'S GOING TO MAKE THE CARS SAFER. 13:22:55 I CAN'T SAY 100% THAT IT NECESSARILY MAKES CARS SAFER. 13:23:01 THEY'RE DIFFERENT. IT'S JUST LIKE CARS. 13:23:03 IT COSTS AROUND $50 TO DO THIS. 13:23:07 BUT YOU'RE NOT DOING IT FOR ALL CARS. 13:23:10 YOU'RE RETRO-FITTING SOME CARS, BUT NOT OTHERS. 13:23:14 WHY ARE YOU MADE THAT DECISION? DON'T YOU FEEL THOSE DRIVING 13:23:18 LESS EXPENSIVE TOYOTAS SHOULD HAVE THAT SENSE THAT THEY HAVE A 13:23:23 BRAKE OVERRIDE THAT'S GOING TO PROTECT THEM? 13:23:25 IT'S NOT A QUESTION OF WHAT PEOPLE PAY FOR THEIR CARS. 13:23:30 WE STARTED WITH THE FOUR VEHICLES THAT HAD PUSH BUTTON 13:23:35 START -- ARE YOU GOING TO GET TO THE 13:23:37 OTHER VEHICLES? WE THEN WENT TO AN ADDITIONAL 13:23:40 THREE MODELS THAT WERE HIGH ON( LIST. 13:23:44 ARE YOU GOING TO GET TO ALL THE OTHER VEHICLES. 13:23:47 WE ARE NOT GOING TO GET TO ALL THE OTHER VEHICLES GOING 13:23:50 BACK. DO YOU HAVE A BRAKE OVERRIDE 13:23:52 IN YOUR CAR SP? I DRIVE A HYBRID THAT HAS THE 13:23:56 EQUIVALENT LEAPT OF IT. MY SON DOESN'T HAVE IT IN HIS 13:24:00 AND I DON'T FEEL THAT HE'S NOT SAFE. 13:24:02 WHAT IF I, AS A TOYOTA OWNER WANTED TO SPEND $50 AND GET IT 13:24:06 IN MY CAR? IF IT HASN'T BEEN DEVELOPED, 13:24:11 IT'S NOT DEVELOPED. IT'S DEVELOPED ENOUGH THAT 13:24:14 YOU ARE PUTTING IT IN MOST TOYOTAS. 13:24:16 IT'S UNIQUE TO EVERY VEHICLE. YOU WILL PUT IT IN ALL FUTURE 13:24:19 TOYOTAS. YES. 13:24:20 EACH AND EVERY VEHICLE FOR TOYOTA IN THE FUTURE AND YOU'RE 13:24:25 RETRO-FITTING FOR SOME BUT NOT ALL. 13:24:27 IT IS UNIQUE TO EVERY VEHICLE. 13:24:29 THE AMOUNT OF TIME IT WOULD TAKE TO DO IT IS JUST NOT -- 13:24:34 WITH ALL DUE RESPECT, I HEAR YOU SAYING YOU WANT PEOPLE TO 13:24:38 FEEL GOOD SO YOU TELL THEM EXPONENT SAID IT'S NOT THE 13:24:44 ELECTRONICS. I DON'T BELIEVE YOU CAN SAY 13:24:45 THAT. THAT WAS PAST TESTIMONY. 13:24:47 YOU'RE SAYING PEOPLE OUGHT TO FEEL GOOD ABOUT THE BRAKE 13:24:50 OVERRIDE BUT YOU'RE NOT WILLING TO SAY THAT'S REALLY FOR SAFETY. 13:24:55 I DON'T SEE THAT YOU ARE GIVING US ASSURANCES ON SAFETY. 13:24:58 IT SEEMS TO ME YOU'RE WORKING AROUND ATTITUDES. 13:25:02 THAT ATTITUDE YOU WANT TO DEVELOP IS PEOPLE SHOULD FEEL 13:25:05 GOOD ABOUT TOYOTA. I WANT PEOPLE TO FEEL GOOD ABOUT 13:25:13 SAFETY. IT IS AN EXTRAORDINARY 13:25:15 EFFORT. I DON'T KNOW OF ANOTHER 13:25:16 MANUFACTURER THAT'S GONE BACK TO RETRO-FIT VEHICLES WITH ANY TYPE 13:25:20 OF SAFETY LIKE THIS. EVEN TO DO THREE MILLION GOING 13:25:25 BACK ON THESE SEVEN MODELS IS AN EXTRAORDINARY EVIDENT FOR ANY 13:25:31 MANUFACTURER. MY TIME IS -- I DON'T WANT TO 13:25:33 INTERRUPT YOU. MY TIME IS MORE AN EXPIRED. 13:25:36 THANK YOU, MR. CHAIRMAN, FOR LETTING ME GO OVER. 13:25:38 AS YOU CAN TELL, I'M STILL NOT SATISFIED. 13:25:41 THANK YOU. MR. CHRISTENSEN FOR 13:25:45 QUESTIONS. THANK YOU, MR. CHAIRMAN. 13:25:51 IN A PRIOR HEARING I ASKED A QUESTION THAT ALL THE MAJOR 13:25:56 DECISIONS WERE BEING MADE IN TOYOTA JAPAN. 13:25:59 THERE SEEMED TO BE A DISCONNECT BETWEEN WHAT WAS HAPPENING WITH 13:26:03 TOYOTA MADE CARS IN DIFFERENT PARTS OF THE WORLD. 13:26:05 NO COMMUNICATION OF WHAT WAS HAPPENING IN EUROPE TOYOTA E.U. 13:26:11 AND TOYOTA U.S. FOR EXAMPLE. HOW WOULD HAVING A SPECIAL 13:26:16 COMMITTEE ON GLOBAL ECONOMY AND A CHIEF QUALITY OFFICER HAVE 13:26:19 MADE A DIFFERENCE IN F THOSE OFFICES EXISTED BACK THEN. 13:26:24 THE BIGGEST DIFFERENCE IS NOT ONLY DID WE HAVE A GLOBAL 13:26:29 QUALITY OFFICER BUT WE HAVE AN INDIVIDUAL WHO WAS RESPONSIBLE 13:26:34 FOR RECALLS IN THE UNITED STATES. 13:26:35 THE WORLD HAS BEEN DIVIDED UP INTO SIX DIFFERENT REGIONS. 13:26:41 EUROPE HAS A REPRESENTATIVE. CHINA HAS A REPRESENTATIVE. 13:26:43 THE U.S. HAS AP REPRESENTATIVE. THEY WILL SHARE IN ALL THE 13:26:48 INFORMATION AND DATA THAT'S GOING ON A GLOBAL BASIS. 13:26:51 THAT DIDN'T HAPPEN BEFORE. THAT DID NOT HAPPEN BEFORE. 13:26:55 THE DECISIONS WERE MADE IN JAPAN AND COMMUNICATED TO US. 13:27:00 NOW THAT INFORMATION WILL BE VISIBLE TO THIS INDIVIDUAL. 13:27:04 THIS INDIVIDUAL WILL WORK WITH ONE OTHER PERSON IN JAPAN TO 13:27:07 MAKE THAT DECISION WHETHER OR NOT THERE IS A RECALL. 13:27:10 IF HE'S NOT SATISFIED, STEVE SAINT ANGELO HAS THE ABILITY TO 13:27:15 GO TO AKIO TOYODA AND DISCUSS THE SITUATION. 13:27:22 NOT ONLY DO WE HAVE INPUT BUT WE CAN GO TO THE PRESIDENT OF THE 13:27:24 COMPANY IF WE ARE NOT SATISFIED WITH WHAT THE DECISION IS. 13:27:27 THAT'S VERY, VERY DIFFERENT THAN BEFORE. 13:27:31 OKAY. YOU HAVE THE NORTH AMERICA 13:27:33 QUALITY ADVISORY PANEL. THEY ARE APPOINTED AND PAID BY 13:27:40 TOYOTA? YES. 13:27:42 MR. SLATER WAS INITIALLY SUGGESTED BY TOYOTA AND HE 13:27:50 BASICALLY HAND-PICKED THE REPRESENTATIVES ON THE 13:27:52 COMMITTEE. SO OTHER THAN RELYING ON THE 13:27:55 HIGH RESPECT THAT WE HAVE FOR THE STEWARTSHIP AND INTEGRITY OF 13:28:02 RODNEY SLATER WHO MAY NOT ALWAYS BE -- FOR ANY NUMBER OF REASONS, 13:28:08 HOW DO WE ENSURE THAT THERE IS ADEQUATE INDEPENDENCE IN THIS 13:28:11 ADVISORY PANEL? YOU KNOW, I THINK YOU HAVE TO 13:28:13 LOOK AT THE RESULTS OF WHAT HAPPENS OVER THE NEXT FEW YEARS. 13:28:19 WE ARE CONFIDENT THAT NOT ONLY MR. SLATER BUT THE ADDITIONAL 13:28:23 MEMBERS OF HIS PANEL, THEY HAVE ALREADY SPENT TIME WITH OUR 13:28:27 PEOPLE. THEY HAVE ALREADY SPENT TIME 13:28:29 WITH EXPONENT. THEY SEEM TO BE VERY, VERY 13:28:35 I INDEPENDENT. 13:28:37 VERY, VERY UP FRONT AND ARE ASKING TREMENDOUS QUESTIONS. 13:28:40 I THINK THEY WILL ADD TREMENDOUS VALUE TO OUR OVERALL 13:28:44 ORGANIZATION. MY LAST QUESTION, INITIATIVES 13:28:49 SUCH AS SMART HAPPENING IN THE TERRITORIES AND THE STATES, WE 13:28:53 HAVE A BIG TOYOTA MARKET IN THE VIRGIN ISLANDS. 13:28:56 I CAN'T TELL YOU SPECIFICALLY MANY THE VIRGIN ISLANDS, OUR 13:28:59 SMART TEAM HAS NOT BEEN REQUESTED TO GO, BUT AFTER YOUR 13:29:03 COMMENTS TODAY I WILL MAKE SURE JAPAN UNDERSTANDS IF THEY NEED 13:29:09 TECHNICAL EXPERTISE I KNOW ON THE ENGINEERING SIDE THAT THEY 13:29:15 COVER THE CARIBBEAN. OUR SMART TEAM DOES NOT OUTSIDE 13:29:20 OF PUERTO RICO UNDER TMS CONTROL. 13:29:23 PUERTO RICO COVERS THE U.S. VIRGIN ISLANDS. 13:29:25 THANK YOU. THANK YOU. 13:29:27 MR. BRALEY FOR QUESTIONS. THANK YOU. 13:29:30 WELCOME BACK. THANK YOU. 13:29:32 WE'LL EXPLORE IN MORE DETAIL TOYOTA'S RELATIONSHIP WITH 13:29:38 EXPONENT. WHEN YOU APPEARED ON SEPTEMBER 13:29:42 23, 2010 YOU SUBMITTED A WRITTEN STATEMENT. 13:29:44 YES. ON PAGE TWO YOU SAID WE ASKED 13:29:52 EXPONENT A WORLD CLASS CONSULTING FIRM TO CONDUCT A 13:29:56 COMPREHENSIVE INDEPENDENT ANALYSIS OF THE ELECTRONIC 13:29:59 THROTTLE CONTROL SYSTEM WITH AN UNLIMITED BUDGET. 13:30:02 DO YOU RECALL MAKING THAT STATEMENT. 13:30:06 YES, SIR. AT THE CONCLUSION I REQUESTED 13:30:07 A COPY OF ANY DOCUMENTS THAT WOULD VERIFY THE NATURE OF THE 13:30:12 RELATIONSHIP BETWEEN TOYOTA AND EXPONENT. 13:30:14 IN RESPONSE TO THAT REQUEST WE RECEIVED FROM YOUR ATTORNEYS 13:30:18 KING AND SPALDING A COPY OF A DOCUMENT LISTED AS ATTACHMENT A 13:30:23 WHICH WE'LL PUT ON THE SCREEN AND WHICH YOU HAVE IN FRONT OF 13:30:28 YOU. THIS IS AN AGREEMENT DATED 13:30:29 DECEMBER 7, 2009, BETWEEN JOEL SMITH AT BOWMAN AND BROOK LAW 13:30:36 FIRM IN SOUTH CAROLINA WITH EXPONENT. 13:30:38 WOULD YOU AGREE WITH THAT? YES. 13:30:40 AND UNDER THE TERM "SUBJECT" IT SAYS TOYOTA CLASS ACTIONS. 13:30:49 DO YOU SEE THAT? YES. 13:30:51 A CLASS ACTION IS A GROUP OF CLAIMS AGAINST A MANUFACTURER 13:30:54 THAT HAVE BEEN ACCUMULATED FOR THE PURPOSE OF PURSUING RELIEF. 13:30:58 DID I STATE THAT CORRECTLY? YES. 13:31:02 AND IN THE FIRST PARAGRAPH, IT SAYS DEAR JOEL AND IT 13:31:07 OUTLINES THE SCOPE OF SERVICES UNDER THE AGREEMENT. 13:31:10 IT SAYS OUR SCOPE OF SERVICES IS ANTICIPATED TO INCLUT 13:31:16 ENGINEERING SERVICES RELATED TO CLASS ACTIONS FILED AGAINST 13:31:21 TOYOTA. DO YOU SEE THAT? 13:31:23 YES. YOU WOULD AGREE CLASS ACTIONS 13:31:25 AGAINST TOYOTA ARE SEPARATE AND DISTINCT FROM AN INDEPENDENT 13:31:28 ANALYSIS OF WHAT'S CAUSING THIS PROBLEM? 13:31:30 I UNDERSTAND THAT. I CAN TELL YOU THAT -- 13:31:33 LET ME GO ON TO THE REST OF THIS LETTER. 13:31:37 DOWN IN PARAGRAPH THREE IT SAYS -- AND THIS IS AN AGREEMENT 13:31:42 BETWEEN BOWMAN AND BROOK, A LAW FIRM IN CALIFORNIA AND EXPOEPT. 13:31:46 IT SAYS IT IS OUR UNDERSTANDING THAT EXPONENT'S RETENTION ON 13:31:50 THIS PROJECT IS SOLELY WITH YOUR ORGANIZATION AND THE 13:31:55 ORGANIZATION THAT EXPONENT IS REFERRING TO IS THE LAW FIRM OF 13:31:58 BOWMAN AND BROOKE. YOU WOULD AGREE WITH THAT? 13:32:01 YES. IT SAYS ALL CHARGES INCURRED 13:32:04 BY EXPOEPT ON THIS PROJECT AND THAT'S THE TOYOTA CLASS ACTION 13:32:08 PROJECT WILL BE THE RESPONSIBILITY OF BOWMAN & 13:32:12 BROOKE, INDEPENDENT OF OTHER PARTIES INVOLVED. 13:32:14 DO YOU SEE THAT? YES. 13:32:16 IT'S CLEAR WHEN EXPONENT WAS FIRST RETAINED THEY ENTERED INTO 13:32:21 AN AGREEMENT WITH A LAW FIRM IN SOUTH CAROLINA, NOT JUST WITH 13:32:24 TOYOTA DIRECTLY AND THE SUBJECT OF THE AGREEMENT WAS TO 13:32:29 INVESTIGATE CLASS ACTION CLAIMS AGAINST TOYOTA. 13:32:33 WE HEARD FROM ADMINISTRATOR STRICKLAND AND HE PUT THIS IN 13:32:37 PERSPECTIVE WHEN HE SAID THERE IS PREPARATION FOR LITIGATION 13:32:41 AND THERE IS SCIENTIFIC ANALYSIS SKISING OF A DETAILED ANALYSIS 13:32:45 OF THE CAUSE OF A PROBLEM AND c ELIMINATING IT. 13:32:49 YOU WOULD AGREE THERE IS A DISTINCTION? 13:32:51 I DON'T KNOW THAT FOR CERTAIN. 13:32:52 LET'S LOOK AT IT. WE ALSO RECEIVED AN ATTACHMENT 13:32:55 D, A SUMMARY OF WHAT EXPONENT HAD BEEN PAID BY TOYOTA OVER THE 13:33:00 YEARS AND IT SAYS THAT BETWEEN 2000 AND 2008 TOYOTA PAID 13:33:07 EXPONENT ABOUT 11 MILLION DOLLARS FOR CONSULTING SERVICES 13:33:10 AND DURING THE PERIOD BETWEEN 2004 AND 2009 IT WAS 9.1 MILLION 13:33:16 DOLLARS. THERE IS A STATEMENT HERE. 13:33:20 EXPONENT BELIEVES THE RESULT OF THE SEARCH PROVIDES A REASONABLE 13:33:26 GROSS REVENUES FROM TOYOTA BUT THEY KNOW IF THE AGREEMENT 13:33:29 DOESN'T REFER TO TOYOTA BY NAME IT MAY SHOW UP IN THE REVENUES. 13:33:33 IT'S CLEAR THAT TOYOTA PAID A SUBSTANTIAL AMOUNT OF MONEY TO 13:33:38 EXPONENT. MY QUESTION IS HOW CAN YOU CLAIM 13:33:42 THAT EXPONENT WAS RETAINED BY TOYOTA TO CONDUCT AN INDEPENDENT 13:33:48 INVESTIGATION WHEN THIS AGREEMENT WE HAVE BEEN PROVIDED 13:33:51 WITH MAKES IT CLEAR THAT THEY WERE RETAINED BY THE DEFENSE LAW 13:33:55 FIRM AND IT WAS FOR CONTESTED LITIGATION WHICH IS IN NO WAY 13:33:58 CONSIDERED AN INDEPENDENT ANALYSIS. 13:34:00 THAT IS HOW THE RELATIONSHIP BEGAN. 13:34:03 BUT AS THIS HAS EVOLVED -- WELL, AS OF THIS WEEK BEFORE 13:34:08 YOU CAME HERE YOU TESTIFIED THAT THEY WERE REPORTING THROUGH 13:34:15 PRODUCT LIABILITY ATTORNEYS THAT IT CHANGED THIS WEEK. 13:34:17 CORRECT. WE ALSO ASKED QUESTIONS FROM 13:34:19 TOYOTA AND RECEIVED RESPONSES. I WANT THOSE PUT UP ON THE 13:34:24 SCREEN. QUESTION AND REQUEST NUMBER 15. 13:34:26 IT SAYS THE OVERALL AMOUNT EXPONENT BILLED FOR WORK RELATED 13:34:31 TO TOYOTA SINCE E EXPONENT WAS RETAINED IN 2009 THE ANSWER THE 13:34:35 COMMITTEE RECEIVED WAS EXPONENT BILLED $3,330,552.36. 13:34:44 SO YOU INDICATED IN YOUR WRITTEN STATEMENT TODAY THAT EXPONENT 13:34:48 HAS ALREADY COMPLETED MORE THAN 11,000 HOURS OF TESTING AND 13:34:52 ANALYSIS. THAT MEANS THAT AT 11,000 HOURS 13:34:55 THAT THEY ARE BILLING ABOUT $302 AN HOUR FOR THIS INCREDIBLE 13:35:00 AMOUNT OF WORK THAT THEY HAVE DONE ON THE PROJECT. 13:35:02 I DON'T KNOW. I DON'T KNOW WHAT THE SPECIFIC 13:35:05 CONTRACT IS. ALL I CAN SAY IS I UNDERSTAND 13:35:12 THE PERCEPTION THAT THIS IS NOT A TRANSPARENT PROCESS. 13:35:15 YOU HAVE PROVIDED IN YOUR WRITTEN STATEMENT TODAY WITH THE 13:35:18 LETTER TO MR. SABAI WHO YOU HAVE INDICATED WILL BE COMMUNICATING 13:35:24 DIRECTLY WITH MR. SAINT ANGELO AND WHEN TOYOTA'S COUNSEL TALKED 13:35:28 TO COMMITTEE STAFF YESTERDAY THEY SAID THE LETTER TO EXPONENT 13:35:31 THAT YOU PROVIDED WITH YOUR ATTACHMENT DOES NOT CHANGE 13:35:36 EXPONENT'S CONTRACTUAL RELATIONSHIP WITH BOWMAN & 13:35:40 BROOKE. NOT YET. 13:35:41 IS IT YOUR UNDERSTANDING THAT IT WILL. 13:35:44 I DON'T KNOW THAT FOR A FACT. WILL YOU COMMIT TO THE 13:35:46 COMMITTEE TODAY THAT IF IT DOES YOU WILL PROVIDE US WITH ANY 13:35:50 DOCUMENTS THAT CHANGE THE RELATIONSHIP BETWEEN EXPONENT 13:35:53 AND BOWMAN & BROOKE OR TOYOTA AND ANY OF ITS VARIOUS ENTITIES 13:35:59 RELATED TO THE PROJECT THAT WE HAVE BEEN TALKING ABOUT DURING 13:36:01 THE TWO HEARINGS? ABSOLUTELY. 13:36:03 I SEE MY TIME IS EXPIRED. I WILL YIELD. 13:36:07 THANK YOU. WE WANTED TO GO ANOTHER ROUND OF 13:36:10 QUESTIONS BUT WE HAVE FOUR VOTES ON THE FLOOR, PLUS THE COMMITTEE 13:36:15 MARK-UP ON THE BILL ON THE NHTSA BILL AT 2:00. 13:36:21 WE'RE GOING TO CUT IT SHORT. BEFORE I GO, I WANTED TO GET 13:36:25 INTO QUESTIONS ABOUT THE POLLING BUT I CAN DO THAT IN WRITING. 13:36:29 I'LL FOLLOW THESE UP, BUT LAST TIME YOU WERE HERE IN FEBRUARY I 13:36:34 ASKED YOU ABOUT A LOT OF DISCUSSIONS ABOUT THE EVENT DATA 13:36:39 RECORDERS. YES. 13:36:40 WE RECEIVED NO INFORMATION YET OTHER THAN YOU PROVIDED 13:36:45 SOME. BUT I HAD ASKED, MR. RUSH AND 13:36:50 OTHERS ASKED SPECIFICALLY ABOUT THE NOVEMBER 27, 2009 ACCIDENT 13:36:54 INVOLVING A 2010 CAMRY IN AUBURN, NEW YORK. 13:36:57 I ASKED ABOUT DECEMBER 26, 2009 ACCIDENT IN SOUTH LAKE, TEXAS, 13:37:02 INVOLVING A 2008 TOYOTA AVALON. I ASKED ABOUT JEFF PEPSKI OF 13:37:09 MINNESOTA, 2007 LEXUS ES 350 ABOUT THEIR BLACK BOX RECORDER. 13:37:14 I ALSO ASKED AND QUESTIONED YOU ON THE FEBRUARY 20th, 2010 13:37:21 WASHINGTON POST ARTICLE ON THE CAMRY'S 2005. 13:37:25 IN FACT, THREE FATAL ACCIDENTS IN THE COURSE OF 2005. 13:37:29 CAMRY IS NOT SUBJECT TO ANY SUDDEN UNINTENDED ACCELERATION 13:37:34 THOUGH THE THREE FATAL ACCIDENTS DID. 13:37:37 WE ARE LOOKING FOR INFORMATION ON THE BLACK BOX RECORDERS. 13:37:40 I WILL FOLLOW UP IN WRITING. THAT AND OTHER QUESTIONS I HAVE. 13:37:43 I APOLOGIZE IF WE HAVEN'T SUBMITTED THAT TO YOU. 13:37:46 I CAN TELL YOU THAT THE BLACK BOX RECORDERS, WE HAVE LIVED UP 13:37:51 TO OUR COMMITMENT THAT WE HAVE 150 OF THE DEVICES, THE DATA 13:37:56 RETRIEVAL DEVICES IN THE MARKETPLACE. 13:38:01 I CAN ALSO TELL YOU -- CORRECT. 13:38:02 WE WANT TO KNOW WHAT THEY SAY. YEAH. 13:38:05 I CAN TELL YOU THEY WILL BE MADE COMMERCIALLY AVAILABLE BY ABOUT 13:38:08 SEPTEMBER OF 2011 TO MAKE IT MUCH MORE READILY AVAILABLE FOR 13:38:12 POLICE ACROSS THE UNITED STATES. AND CONSUMERS I HOPE. 13:38:15 CONSUMERS WILL HAVE ACCESS. THAT WILL BE PART OF THE BILL 13:38:19 TODAY. WE'LL FOLLOW UP. 13:38:23 QUICKLY, SIR. BEFORE YOU CLOSE, I WOULD ASK 13:38:25 THAT THE RESPONSE FROM KING AND SPALDING THAT WE RECEIVED ARE W 13:38:29 ALL THE RELEVANT ATTACHMENTS AND THE E-MAIL WE HAD ON THE SCREEN 13:38:35 DATED WEDNESDAY, MAY 19 WITH BE INCLUDED. ESTIONS 15 AND 16 13:38:39 NO PROBLEM AS LONG AS WE HAVE REDACTIONS ON SOME OF THE NAMES. 13:38:43 THAT WOULD BE THE ONLY THING I HAVE TO INSIST UPON. 13:38:45 OTHER THAN THAT, I HAVE NO OBJECTION. 13:38:48 DO YOU HAVE ANY OBJECTION AS LONG AS WE REDACT THE NAMES? 13:38:51 I HAVE A QUESTION FOR THE CHAIRMAN WHY WE WOULD REDACT 13:38:55 NAMES PROVIDED IN RESPONSE TO AN OFFICIAL REQUEST. 13:38:59 THAT'S THE POLICY IF THEY ARE NOT SUBJECT TO IT THE NAMES OF 13:39:02 THOSE ENGINEERS BY EXPONENT, THEIR NAMES DON'T NEED TO BE IN 13:39:05 THE PUBLIC RECORD. THE ONLY EXCEPTION I WOULD 13:39:09 REQUEST, MR. CHAIRMAN, IS THERE ARE PEOPLE -- MR. SABAI IS 13:39:14 LISTED AS THE FIRST PERSON IN THE INTEREST. 13:39:16 HE'S BEEN THE SUBJECT OF THE DISCUSSION AT THE HEARING AND 13:39:18 THERE IS NO QUESTION BASED ON THE LETTER THAT THE WITNESS HAS 13:39:23 PROVIDED THAT HIS NAME BE LEFT. CORRECT. 13:39:27 WITHOUT OBJECTION. SO THAT WILL BE INCLUDED WITH 13:39:30 THE REDACTIONS OF PROFESSIONAL ENGINEERS NOT SUBJECT TO OR 13:39:34 SIGNING THAT LETTER. THAT CONCLUDES -- 13:39:37 MR. CHAIRMAN, JUST ONE OBSERVATION SINCE EVERYONE ELSE 13:39:41 HAS GONE OVER. ALL RIGHT. 13:39:42 YOU'RE GOING TO A MARK-UP. I AM NO LONGER ON THE 13:39:48 SUBCOMMITTEE, BUT YOU'RE GOING TO MARK UP LEGISLATION BUT WE 13:39:51 HAVEN'T FINISHED OUR WORK HERE THAT IS SUPPOSED TO INFLUENCE 13:39:56 LEGISLATION BEING MARKED UP THIS AFTERNOON. 13:39:59 THERE ARE HUGE HOLE THAT IS NEED TO BE FILLED WITH THE NEED TO 13:40:03 GET THIS DONE -- THE LEGISLATION WE ARE 13:40:06 MARKING UP DOESN'T JUST INCLUDE THE SUBJECT OF THIS HEARING. 13:40:09 THERE ARE ALSO OTHERS. THERE HAVE BEEN HEARINGS ON THE 13:40:14 LEGISLATION THAT WITNESSES HAVE TESTIFIED. 13:40:16 I KNOW YOU'RE NOT ON THE SUBCOMMITTEE. 13:40:18 WE DO THIS TIME AND AGAIN. I'M RECLAIMING MY TIME. 13:40:21 YOU DON'T HAVE ANY TIME. WE DID IT WITH CLEAN WATER 13:40:25 AND WE ARE DOING IT THIS AFTERNOON. 13:40:26 IT SEEM IT IS COMMITTEE SHOULD TAKE THINGS IN A METHODICAL WAY 13:40:30 AND NOT BE DOING THINGS IN A HAPHAZARD ARRANGEMENT THAT SEEMS 13:40:35 TO BE SO PREVALENT IN THE COMMITTEE. 13:40:37 THANK YOU. I WILL YIELD BACK. 13:40:39 YOU WILL HAVE A CHANCE TO VOICE THOSE OBJECTIONS WHEN IT 13:40:42 COMES TO FULL COMMITTEE. AS YOU KNOW WHEN IT GOES TO THE 13:40:45 SUBCOMMITTEE LEVEL IT MUST COME TO THE FULL COMMITTEE. 13:40:50 YOU WILL HAVE A CHANCE THEN. THAT CONCLUDES ALL QUESTIONING. 13:40:53 I WANT TO THANK OUR WITNESSES FOR COMING TODAY AND YOUR 13:40:56 TESTIMONY. THE COMMITTEE RULES PROVIDE 13:40:57 MEMBERS HAVE TEN DAYS TO SUBMIT QUESTIONS FOR THE RECORD. 13:41:02 I ASK THAT THE CONTENTS BE ENTERED INTO THE RECORD PROVIDED 13:41:06 THAT THE STAFF MAY REDACT AS IT RELATES TO PRIVACY CONCERNS. 13:41:13 THE DOCUMENTS WILL BE ENTERED IN THE RECORDS. 13:41:16 LET ME ACKNOWLEDGE TWO KEY STAFF PERSONS, ALAN TINDALE AND KAREN 13:41:22 CHRISTENSEN OF THE REPUBLICAN STAFF. 13:41:25 BOTH WOMEN ARE EXPECTING A CHILD SOON. 13:41:27 WE APPRECIATE THEIR WORK ON THIS HEARING AND PREVIOUS HEARINGS 13:41:30 FOR THE COMMITTEE AND OUR SUBCOMMITTEE. 13:41:32 WE WISH THEM WELL IN THE COMING DAYS AND WEEKS AHEAD AS THEY 13:41:36 TRANSITION FROM WORK EXHAUSTION TO CHILDBIRTH EXHAUSTION. 13:41:40 THAT WILL CONCLUDE OUR HEARING. THIS MEETING IS ADJOURNED.

Shock absorber under a car tire in the auto repair shop.

House Energy and Commerce Committee holds a hearing with Eddie and Rhonda Smith, Toyota car victims, James Lentz, president and chief operating officer of Toyota USA, Ray LaHood, and Sean Kane, the president, Safety Research Strategies Inc. 12:00:00 IN 2004. AND THAT SINCE 2000 THERE HAVE 12:00:03 BEEN MORE THAN 2600 COMPLAINTS ABOUT UNINTENDED ACCELERATION IN 12:00:07 TOYOTA VEHICLES AND POSSIBLE LINKS TO 34 DEATHS. 12:00:10 I AM CONCERNED ABOUT WHETHER NHTSA HAS HAD THE RESOURCES 12:00:15 NECESSARY TO SUFFICIENTLY INVESTIGATE THESE COMPLAINTS AND 12:00:17 I LOOK FORWARD TO HEARING FROM MY FORMER COLLEAGUE, SECRETARY 12:00:20 LaHOOD, ABOUT WHAT HE NEEDS TO EFFECTIVELY REBUILD THE AGENCY. 12:00:24 IN THE COMING MONTHS, CHAIRMAN RUSH AND I AS THE VICE CHAIR OF 12:00:29 THE COMMITTEE WILL BE WORKING ON NHTSA REAUTHORIZATION. 12:00:33 AND THE PIECES OF THE PUZZLE THAT WE'RE TALKING ABOUT TODAY 12:00:35 ARE CRITICAL TO OUR DISCUSSIONS ABOUT THE FUTURE OF THE AGENCY 12:00:39 AND WHETHER IT NEEDS ADDITIONAL RESOURCES IN TERMS OF FUNDING, 12:00:44 EXPERTISE OR AUTHORITY. THANK YOU, MR. CHAIRMAN. 12:00:49 AND I YIELD BACK. >> FINALLY MR. BRALEY OF IOWA, 12:00:54 THREE MINUTES FOR AN OPENING STATEMENT. 12:00:57 >> THANK YOU, MR. CHAIRMAN. I WANT TO MAKE THIS CLEAR AT THE 12:00:59 BEGINNING IN RESPONSE TO SOME OF THE CONCERNS MENTIONED ON THE 12:01:01 OTHER SIDE OF THE AISLE, I AM AN EQUAL OPPORTUNITY CONSUMER 12:01:05 SAFETY ADVOCATE. I THINK EVERY MANUFACTURER THAT 12:01:07 SELLS PRODUCTS IN THIS COUNTRY SHOULD BE ABLE TO JUSTIFY THAT 12:01:11 THEY ARE DOING EVERYTHING THEY CAN TO ENSURE THAT THOSE 12:01:14 PRODUCTS ARE SAFE AND PROTECT CONSUMERS FROM HARM. 12:01:17 THAT INCLUDES AMERICAN AUTOMOBILE MANUFACTURERS AND 12:01:21 FOREIGN AUTOMOBILE MANUFACTURERS THAT DO BUSINESS IN THIS 12:01:24 COUNTRY. BUT HERE ARE SOME QUESTIONS THAT 12:01:26 I THINK AMERICAN CONSUMERS DESERVE ANSWERS TO AT THIS 12:01:31 HEARING. ONE, WHY HAS TOYOTA, WITH THE 12:01:35 DESERVED REPUTATION FOR ITS COMMITMENT TO EXCELLENCE AND 12:01:38 SAFETY THAT YOU'VE HEARD MENTIONED HERE TODAY, WHY DO 12:01:42 THEY REFUSE FOR SO LONG TO SERIOUSLY ADDRESS THE 12:01:46 POSSIBILITY OF A FAILURE OF ITS ELECTRONIC THROTTLE CONTROL 12:01:50 SYSTEM AS A CONTRIBUTING FACTOR TO SUDDEN UNINTENDED 12:01:55 ACCELERATIONS? TWO, ONCE THIS COMMITTEE BEGAN 12:01:58 ITS INVESTIGATION OF THIS PROBLEM, WHY DID TOYOTA TURN TO 12:02:02 ITS PRODUCT LIABILITY DEFENSE ATTORNEYS AT BOWMAN AND BROOK TO 12:02:07 HIRE ITS INDEPENDENT EXPERT EX-POINT INC. TO ANALYZE THIS 12:02:12 PROBLEM? THREE, WAS THE INTERIM REPORT 12:02:20 PRODUCED BY EXPONENT INC. JUNK SCIENCE AND HOW MUCH CREDIBILITY 12:02:24 SHOULD IT BE GIVEN BY THIS COMMITTEE AND AMERICAN 12:02:27 CONSUMERS? >> FOUR, IS NHTSA, WITH ITS 12:02:30 IMPORTANT JURISDICTIONAL RESPONSIBILITIES, CAPABLE 12:02:33 WITHOUT MAJOR CHANGES TO ITS FUNDING AND ITS STAFF OF MAKING 12:02:38 AN INDEPENDENT DETERMINATION OF THE UNDERLYING CAUSES OF THIS 12:02:42 PROBLEM GIVEN THE CHANGING NATURE OF THE AUTOMOBILE 12:02:45 INDUSTRY AND THE INCREASING RELIANCE UPON ELECTRONIC AND 12:02:49 COMPUTER DATA? FIVE, IS THERE DATA AVAILABLE IN 12:02:53 THESE VEHICLES THAT IS BEING WITHHELD FROM THE AMERICAN 12:02:56 PUBLIC AND FROM REGULATORS OF PUBLIC SAFETY THAT WOULD GIVE US 12:03:00 CLUES INTO THE UNDERLYING CAUSE OF THESE PROBLEMS THAT I'M 12:03:03 TALKING SPECIFICALLY ABOUT THE BLACK BOXES THAT NOW PROVIDE 12:03:07 COUNTLESS AMOUNTS OF DATA AND YET ARE PROTECTED FROM PUBLIC 12:03:12 DISCLOSURE IN EVERY ATTEMPT TO TRY TO FIND OUT WHAT TYPE OF 12:03:15 COMPUTER DATA MIGHT BE AVAILABLE TO TRY TO JUSTIFY AND EXPLAIN 12:03:19 WHY THESE PROBLEMS HAPPEN. THESE ARE SOME OF THE QUESTIONS 12:03:23 I HOPE THAT AMERICAN CONSUMERS GET ANSWERS TO TODAY AND I ASK 12:03:27 UNANIMOUS CONSENT TO SUBMIT MY FULL STATEMENT FOR THE RECORD, 12:03:32 MR. CHAIRMAN. >> ALL STATEMENTS OF MEMBERS 12:03:35 WILL BE IN THE RECORD AND WILL BE SUBMITTED FOR THE RECORD. 12:03:38 I MISSPOKE, MR. WELCH, YOU'RE A MEMBER OF THE SUBCOMMITTEE, I 12:03:41 DIDN'T SEE YOU DOWN THERE, PETER. 12:03:43 IF YOU HAVE AN OPENING STATEMENT, THREE MINUTES. 12:03:45 >> THANK YOU VERY MUCH, MR. CHAIRMAN. 12:03:47 THERE REALLY IS ONE PROPOSITION THAT IS NOT NEGOTIABLE, AND 12:03:51 THAT'S THE SAFETY OF THE AMERICAN PEOPLE, THE AMERICAN 12:03:55 CONSUMER. AND THAT PROPOSITION REQUIRES US 12:03:58 TO ASK TWO QUESTIONS. IS THE NATIONAL HIGHWAY 12:04:02 TRANSPORTATION SAFETY ADMINISTRATION UP TO THE TASK OF 12:04:04 THE JOB? WHAT DO THEY NEED TO DO IN ORDER 12:04:07 TO DO THAT JOB BETTER? SECOND, WHAT DID TOYOTA DO, DID 12:04:14 IT DO IT SOON ENOUGH, AND IS IT DOING IT NOW AGGRESSIVELY 12:04:17 ENOUGH? BUT THIS QUESTION OF PROTECTING 12:04:20 THE PUBLIC DOES REQUIRE A GOVERNMENTAL RESPONSE, WHETHER 12:04:24 IT IS INVOLVE A CAR OR A TOY MANUFACTURED FROM CHINA IMPORTED 12:04:30 HERE AND USED BY OUR KIDS. AND THE FUNDAMENTAL 12:04:33 RESPONSIBILITY IS BOTH WHEN IT COMES TO SAFETY, IS BOTH WITH 12:04:36 GOVERNMENT TO HAVE AGENCIES THAT ARE LOOKING OUT FOR THE 12:04:39 INTERESTS OF THE AMERICAN PEOPLE, AND GOVERNMENT HAS BEEN 12:04:43 WOEFULLY INADEQUATE IN DOING THAT. 12:04:45 NOT JUST IN SOME CONSUMER SAFETY ISSUES, BUT EVEN IN FINANCIAL 12:04:49 PRODUCTS LIKE SUBPRIME MORTGAGES. 12:04:51 AND MR. CHAIRMAN, I'M GLAD OUR COMMITTEE IS BACK ON THE JOB. 12:04:54 BUT SECONDLY, WE HAVE AN OBLIGATION TO BE FAIR TO ALL 12:04:56 CONCERNED. THAT'S TO THE DEALERS, TO THE 12:05:00 MANUFACTURER, TO THE FOLKS WHO WORK IN MY CASE TOYOTA 12:05:05 DEALERSHIPS IN VERMONT. I'VE HAD A CHANCE TO SPEAK TO 12:05:07 DAVE BIRMINGHAM, KAREN AND DAN LUNO, VERY PROUD OF THE WORK 12:05:11 THEY DO, 640 VERMONTERS WORK IN THIS. 12:05:14 THIS HEARING IS GOING TO MAKE CERTAIN THAT WE GET TO THE 12:05:17 BOTTOM OF THESE QUESTIONS, ABOUT THE GOVERNMENT AND ABOUT TOYOTA, 12:05:21 BUT IT HAS TO BE FAIR TO ALL CONCERNED. 12:05:23 THANK YOU, MR. CHAIRMAN. >> THANK YOU, MR. WELCH. 12:05:26 LET ME ALSO THANK OTHER MEMBERS OF THE COMMITTEE WHO ARE PRESENT 12:05:28 BUT NOT MEMBERS OF SUBCOMMITTEE BUT INTERESTED IN THIS HEARING 12:05:32 AND ARE HERE AND THEIR PRESENCE IS APPRECIATED. 12:05:37 MR. GONZALEZ, MR. GORDON IS HERE. 12:05:40 IF YOU WANT TO SUBMIT AN OPENING STATEMENT, WE'LL BE HAPPY TO 12:05:45 RECEIVE IT. MR. LENTZ OF TOYOTA HAS BEEN 12:05:47 HERE WITH SOME OF HIS STAFF AND THEY WERE COURTEOUS ENOUGH AND 12:05:51 DIDN'T WANT TO INTERRUPT THE OPENING STATEMENTS SO IF THEY 12:05:54 WANT TO COME FORWARD AND HAVE A CHAIR AND OPEN CHAIRS WOULD BE 12:05:58 HAPPY TO HAVE THEM. I ALWAYS APPRECIATE IT WHEN 12:06:00 WITNESSES NO MATTER WHAT PANEL THEY'RE ON WILL SIT THROUGH A 12:06:02 FULL HEARING SO WE GET A FULL FLAVOR OF OUR HEARINGS. 12:06:05 SO IF MR. LENTZ AND HIS STAFF WOULD LIKE TO COME OUT, THAT 12:06:08 WOULD BE GREAT. WE'LL RECESS FOR A MINUTE WHILE 12:06:09 THEY DO THAT. THERE IS ABOUT SIX SEATS UP 12:06:27 FRONT HERE YOU'D LIKE TO TAKE THE SEATS UP FRONT. 12:06:29 THAT WOULD BE GREAT. LET ME CALL OUR FIRST PANEL OF 12:07:00 WITNESSES. ON OUR FIRST PANEL WE HAVE MR. 12:07:06 SEAN KANE WHO IS PRESIDENT OF SAFETY RESEARCH AND STRATEGIES 12:07:11 INCORPORATED. DR. DAVID GILBERT, WHO IS AN 12:07:13 ASSOCIATE PROFESSOR OF AUTOMOTIVE TECHNOLOGY AT 12:07:17 SOUTHERN ILLINOIS UNIVERSITY. EDDIE AND RHONDA SMITH OF 12:07:21 SEVIERVILLE, TENNESSEE, WHO OWN A LEXUS ES 350 THAT EXPERIENCED 12:07:25 SUDDEN UNINTENDED ACCELERATION IN 2006. 12:07:27 I ASKED THE WITNESSES TO COME FORWARD. 12:08:01 IT IS THE POLICY OF THIS SUBCOMMITTEE TO TAKE ALL 12:08:04 TESTIMONY UNDER OATH. PLEASE BE ADVISED THAT YOU HAVE 12:08:06 THE RIGHT UNDER THE RURALS OF THE HOUSE TO BE ADVISED BY 12:08:10 COUNCIL DURING YOUR TESTIMONY. DO ANY OF YOU WISH TO BE 12:08:12 REPRESENTED BY COUNCIL? EVERYONE INDICATING AND NODDING 12:08:17 THEIR HEAD NO. I TAKE IT AS A NO THEN. 12:08:20 I'LL ASK YOU TO PLEASE RISE AND RAISE YOUR RIGHT HAND TO TAKE 12:08:22 THE OATH. DO YOU SWEAR OR AFFIRM THAT 12:08:33 TESTIMONY YOU'RE ABOUT TO GIVE IN THIS MATTER TO BE THE TRUTH, 12:08:35 THE WHOLE TRUTH AND NOTHING BUT THE TRUTH IN THE MATTER PENDING 12:08:38 BEFORE THIS COMMITTEE? LET THE RECORD REFLECT THAT THE 12:08:44 WITNESSES REPLIED IN THE AFFIRMATIVE. 12:08:46 EACH OF YOU ARE NOW UNDER OATH. WE WILL HEAR A FIVE-MINUTE 12:08:50 OPENING STATEMENT FROM OUR WITNESSES. 12:08:52 YOU MAY SUBMIT A LONGER STATEMENT FOR INCLUSION IN THE 12:08:56 HEARING RECORD. MR. SMITH, IF YOU DON'T MIND, 12:08:58 YOU WANT TO START? OR WOULD YOU LIKE MRS. SMITH TO 12:09:02 START? RHONDA, YOU WANT TO START FIRST? 12:09:06 I'M GOING TO ASK YOU TO PULL THAT MIKE UP, TURN ON THAT LIGHT 12:09:09 THERE, GREEN LIGHT SHOULD GO ON. AND I UNDERSTAND YOU'RE GOING TO 12:09:14 GO FIVE MINUTES AND GIVE IT TO YOUR HUSBAND AND HE'LL GO FIVE 12:09:18 MINUTES, IS THAT CORRECT? >> YES. 12:09:19 >> OKAY. WHEN YOU'RE READY. 12:09:20 >> OKAY. >> THANK YOU FOR BEING HERE. 12:09:26 >> I WOULD LIKE TO BEGIN BY THANKING THE HONORABLE MEMBERS 12:09:30 OF THIS COMMITTEE AND ALSO MR. SEAN KANE AND HIS STAFF FOR 12:09:35 INVITING US HERE TO TESTIFY TODAY REGARDING THE MUCH 12:09:38 PUBLICIZED SUDDEN UNINTENDED ACCELERATION OR ALSO KNOWN AS 12:09:44 SUA THAT HAS BEEN AND IS CURRENTLY BEING EXPERIENCED BY 12:09:47 TOYOTA DRIVERS NOT ONLY IN THE UNITED STATES, BUT ALL OVER THE 12:09:49 WORLD. SUA HAS BEEN THE CAUSE OF 12:09:55 NUMEROUS DEATHS AND WILL CONTINUE TO BE UNLESS ADDRESSED 12:09:58 BY THIS COMMITTEE, TOYOTA AND NHTSA. 12:10:03 WE TRULY APPRECIATE THIS OPPORTUNITY TO SHARE OUR STORY 12:10:06 NOW. SINCE WE HAVE ATTEMPTED NUMEROUS 12:10:11 TIMES SINCE OCTOBER 2006. MY NAME IS RHONDA SMITH, AND 12:10:15 THIS IS MY HUSBAND -- >> MR. CHAIRMAN, CAN WE GET 12:10:18 MICROPHONE UP? IT IS HARD TO HEAR HER. 12:10:19 >> SURE. JUST PULL IT CLOSER. 12:10:23 >> IS THAT BETTER? >> TRY THAT. >> MY NAME IS RHONDA SMITH AND 12:10:27 THIS IS MY HUSBAND OF 38 YEARS, EDDIE SMITH. 12:10:30 I'M A RETIRED SOCIAL WORKER WITH THE STATE OF TENNESSEE AND EDDIE 12:10:34 IS A SENIOR VICE PRESIDENT AT A BANK IN SEVIERVILLE, TENNESSEE. 12:10:38 I'M TRULY THANKFUL TO BE HERE TODAY AND I FEEL I'M SPEAKING ON 12:10:42 BEHALF OF THOSE WHO HAVE LOST THEIR LIVES NEEDLESSLY, 12:10:46 UNNECESSARILY AND I WOULD LIKE TO SHARE AN INCIDENT WITH YOU 12:10:49 CONCERNING SUA THAT I EXPERIENCED OCTOBER 12th, 2006, 12:10:53 AND OUR NEW LEXUS ES 350. THIS CAR HAD 2,728 MILES ON IT 12:11:01 WHEN THE INCIDENT OCCURRED. THE VEHICLE HAD A KEYLESS PUSH 12:11:06 BUTTON IGNITION AND REQUIRED A KEY FOB TO BE PRESENT INSIDE THE 12:11:11 CAR IN ORDER FOR IT TO START. ON THAT THURSDAY, OCTOBER 12th, 12:11:16 2006, AND I AM GOING TO READ THIS BECAUSE I TELL YOU IT IS IT 12:11:20 STILL UPSETS ME TODAY, I WAS DRIVING FROM MY HOME IN 12:11:24 SEVIERVILLE, DOWN HIGHWAY 66, TO THE INTERSTATE, INTERSTATE 40, 12:11:29 AND UPON ENTERING THE INTERSTATE I ACCELERATED WITH EVERYONE ELSE 12:11:32 INTO THE FLOW OF TRAFFIC. AND AT THIS POINT I MERGED OVER 12:11:37 INTO THE SECOND LANE, NOT GOING INTO PASSING GEAR. 12:11:40 AT THIS TIME I LOST ALL CONTROL OF THE ACCELERATION OF THE 12:11:44 VEHICLE. THE CAR GOES INTO PASSING GEAR 12:11:46 AND THE CRUISE LIGHT COMES ON. AT THIS TIME I'M THINKING THAT 12:11:52 MIGHT BE THE CRUISE IS WHAT CAUSED THE CAR TO KEEP 12:11:55 ACCELERATING, AS MY FOOT IS NOT ON THE GAS PEDAL. 12:11:58 I TAKE OFF THE CRUISE CONTROL, BUT THE CAR CONTINUES TO 12:12:03 ACCELERATE. TO MAKE A LONG STORY SHORT, I 12:12:05 PUT THE CAR INTO ALL AVAILABLE GEARS INCLUDING NEUTRAL, BUT 12:12:10 THEN I PUT IT IN REVERSE AND IT REMAINS IN REVERSE AS THE CAR 12:12:14 SPEEDS TO OVER 100 MILES PER HOUR DOWN THE INTERSTATE. 12:12:19 I PLACE BOTH FEET ON THE BRAKE AFTER I FIRMLY ENGAGED THE 12:12:24 EMERGENCY BRAKE AND NOTHING SLOWS THE CAR. 12:12:26 I FIGURED THE CAR WAS GOING TO GO ITS MAXIMUM SPEED AND I WAS 12:12:29 GOING TO HAVE TO PUT THE CAR INTO THE UPCOMING GUARDRAIL IN 12:12:32 ORDER TO PREVENT KILLING ANYONE ELSE AND I PRAYED FOR GOD TO 12:12:37 HELP ME. I CALLED MY HUSBAND ON THE BLUE 12:12:40 TOOTH PHONE SYSTEM. I KNEW -- I'M SORRY. 12:12:53 I KNEW HE WOULD NOT HELP ME, BUT I WANTED TO HEAR HIS VOICE FOR A 12:13:01 TIME. AFTER SIX MILES, GOD INTERVENED 12:13:08 AS THE CAR CAME VERY SLOWLY TO A STOP. 12:13:11 I PULLED IT TO THE LEFT MEDIAN. WITH THE CAR STOPPED, AND BOTH 12:13:17 FEET STILL ON THE BRAKE, THE MOTOR STILL REVVED UP AND DOWN 12:13:25 AT 35 MILES AN HOUR. IT WOULD NOT SHUT OFF. 12:13:29 FINALLY AT 33 MILES PER HOUR I WAS ABLE TO TURN THE ENGINE OFF. 12:13:38 AFTER MY HUSBAND ARRIVED HE FOUND NOTHING UNUSUAL ABOUT THE 12:13:42 ACCELERATOR OR THE FLOOR MATS. BUT THE STRANGE THING WAS THAT 12:13:48 THE DASH LIGHTS AND THE RADIO WERE STILL ON. 12:14:05 AFTER THE WRECKER ARRIVED, WE GAVE THE VEHICLE FOB TO THE 12:14:07 WRECKER DRIVER. WHEN HE HOOKED THE CAR AND 12:14:08 PREPARED TO WINCH IT ON TO THE ROWBACK, HE ASKED MY HUSBAND TO 12:14:09 PUT THE CAR IN NEUTRAL SO HE COULD START THE WINCH. 12:14:11 THE DRIVE WEARS STANDING 20 TO 25 FEET AWAY AT THE ROLLBACK 12:14:12 CONTROLS. WITHOUT THINKING, MY HUSBAND SAT 12:14:13 DOWN IN THE CAR WITHOUT THE KEY FOB AND WAS ABLE TO SHIFT THE 12:14:18 CAR INTO NEUTRAL WHICH HE SHOULDN'T HAVE BEEN ABLE TO DO. 12:14:21 BUT WHEN HE DID THAT, THE CAR ACTUALLY TRIED TO START ITSELF. 12:14:27 WE HAVE A NOTRIZED STATEMENT FROM TOMMY CLAYTON, THE WRECKER 12:14:32 DRIVER, ATTESTING TO THIS. TOYOTA SAID THEY WOULD INSPECT 12:14:36 OUR LEXUS AND CONTACT US. AFTER TEN DAYS WE STILL HAD NOT 12:14:39 RECEIVED A CALLBACK. WE CALLED AGAIN AND GOT THE SAME 12:14:44 ASSURANCES. TOYOTA PROMISED US THEY WOULD 12:14:46 LOOK INTO OUR COMPLAINT SEVERAL MORE TIMES OVER THE NEXT FEW 12:14:48 WEEKS. WHEN WE FINALLY FORCED TOYOTA TO 12:14:51 RESPOND IN WRITING WE RECEIVED A FIVE-SENTENCE ANALYSIS STATING 12:14:55 AND I QUOTE, WHEN PROPERLY MAINTAINED THE BRAKES WILL 12:15:00 ALWAYS OVERRIDE THE ACCELERATOR. WELL, WE KNOW THAT'S A LIE. 12:15:04 AND WE WERE OUTRAGED THAT TOYOTA WOULD SUGGEST IN THAT STATEMENT 12:15:09 ALSO THAT THE BRAKES HAD TO NOT PROPERLY BE MAINTAINED IN ORDER 12:15:14 FOR THAT TO HAPPEN. AND THE CAR HAD LESS THAN 3,000 12:15:18 MILES ON IT. ONCE AGAIN WE CONTACTED OUR 12:15:21 DEALER AND EXPRESSED OUR DISGUST WITH TOYOTA'S HANDLING. 12:15:24 THEY RECOMMENDED THAT WE CONTACT NCDS WHICH IS THE NATIONAL 12:15:29 CENTER FOR DISPUTE SETTLEMENT AND ASK FOR AN ARBITRATION 12:15:31 HEARING. OUR NCDS HEARING WAS A TOTAL 12:15:35 FARCE. THE REPRESENTATIVE FOR LEXUS WAS 12:15:39 MR. LEONARD ST. AMOND, THEIR TENNESSEE DISTRICT FIELD 12:15:45 TECHNICIAN. MR. ST. AMOND, THOUGH ONLY AN 12:15:47 HOUR AWAY IN KINGS PORT, DID NOT SHOW HIS FACE AND HE ATTENDED BY 12:15:54 S SPEAKERPHONE. 12:15:56 HE INSISTED HE COULD NOT RE-CREATE THE INCIDENT AND I HAD 12:15:59 MORE THAN LIKELY CAUSED THE PROBLEM BY STANDING ON THE 12:16:02 BRAKES WHILE SPINNING THE TIRES. I, OF COURSE, WE WERE FURIOUS 12:16:06 THAT TOYOTA CALLED US LIARS THE SECOND TIME. 12:16:11 NCDS DENIED OUR CLAIM FOR A TOTAL REFUND OF OUR PURCHASE 12:16:14 PRICE FOR THIS POSSESSED CAR WHICH IS ALL WE WERE ASKING FOR. 12:16:19 IN MID-MARCH 2007 WE TURNED TO NHTSA FOR HELP. 12:16:26 MR. STEVE CHAN AND MR. SCOTT YOUNG TOOK OVER OUR CLAIM AND 12:16:34 SEEMED TO BE RECEPTIVE OF OUR CONCERNS. 12:16:38 THAT SUDDEN UNINTENDED ACCELERATION IN VEHICLES COULD 12:16:41 CAUSE SERIOUS INJURY AND WE'RE TOLD POSSIBLY DEATH AT THE TIME, 12:16:44 THAT SOMEBODY WAS REALLY GOING TO GET HURT. 12:16:46 WE FURNISHED PICTURES OF THE CAR AND DOCUMENTATION OF WHAT 12:16:51 TRANSPIRED SINCE OCTOBER 2006. ON APRIL 11th, 2007, MR. YAWN 12:16:57 FLEW TO KNOXVILLE, TENNESSEE, AND DROVE TO SEVIERVILLE TO 12:17:00 INSPECT THE CAR. MY HUSBAND WILL ADDRESS THAT IN 12:17:02 A MOMENT. SINCE NEITHER TOYOTA NOR NHTSA 12:17:06 TOOK US SERIOUSLY, WE TRIED TO LET THE PUBLIC THROUGH THE NEWS 12:17:09 MEDIA BACK THEN. WE CONTACTED NUMEROUS NEWS 12:17:14 AGENCIES, A LOT THAT ARE PROBABLY HERE TODAY, AND WE 12:17:21 TRIED ALL TYPES OF MEDIA ONLY TO HAVE ONE LOCAL STATION TAKE AN 12:17:24 INTEREST IN OUR CLAIM THAT TOYOTA AND NHTSA WERE IGNORING 12:17:27 THE DEADLY PROBLEM. ONLY ONE LOCAL STATION, WATV 12:17:34 CHANNEL 6 IN KNOXVILLE DID THE STORY WHICH AIRED IN THE SPRING 12:17:37 OF 2007. WE REPEATED OUR STRONG BELIEF 12:17:40 THAT THE PROBLEM WAS SOMEWHERE IN THE ELECTRONICS. 12:17:44 AFTER THE CALIFORNIA CRASH THAT KILLED A CALIFORNIA HIGHWAY 12:17:46 PATROLMAN AND HIS FAMILY, WATV DID A SECOND STORY ON TOYOTA'S 12:17:53 SUDDEN UNINTENDED ACCELERATION. THIS WAS BROADCAST IN FEBRUARY 12:17:59 2010 SHOWING OUR ORIGINAL INTERVIEW AND A CURRENT 12:18:03 INTERVIEW. WE NEVER WAVERED FROM OUR BELIEF 12:18:05 THAT OUR PROBLEM WAS ELECTRONIC. NOT WANDERING FLOOR MATS. 12:18:10 WE FORWARDED THIS 2010 VIDEO TO TOYOTA AND NHTSA AND RECEIVED NO 12:18:14 RESPONSE. IN EARLY 2008 WE RELUCTANTLY LET 12:18:18 GO OF OUR MISSION TO PERSUADE TOYOTA AND NHTSA TO DEAL WITH 12:18:21 THE PROBLEM BECAUSE THE EFFORT WAS TOO TRAUMATIZING. 12:18:24 BUT WE'RE HERE TODAY BECAUSE FOR THE FIRST TIME WE FEEL OUR STORY 12:18:30 HAS BEEN GIVEN MORE THAN A TOKEN ATTENTION. 12:18:34 AND UNFORTUNATELY IT TOOK ALMOST FOUR YEARS AND INJURIES AND 12:18:40 LIVES LOST TO CONGRESS TO TAKE UP THIS IMPORTANT ISSUE. 12:18:44 IN 2006, AND '07, WE HOPE OUR EFFORTS MIGHT SPARE OTHERS THE 12:18:49 UNNECESSARY TERROR AND PAIN OF AN SUA INCIDENT. 12:18:53 AND IT PAINS OUR HEARTS DEEPLY TO REALIZE THAT WE FAILED, BUT 12:18:56 THIS FAILURE IS SURELY SHARED BY TOYOTA AND NHTSA TODAY. 12:19:01 IN OUR VIEW, THEY DEMONSTRATED AN UNCARING ATTITUDE AND 12:19:05 DISREGARD FOR LIFE. THE RESULTS HAVE BEEN TRAGIC. 12:19:09 AND TODAY I MUST SAY SHAME ON YOU, TOYOTA, FOR BEING SO 12:19:16 GREEDY. AND SHAME ON YOU, NHTSA, FOR NOT 12:19:19 DOING YOUR JOB. IT IS OUR HOPE THAT THIS 12:19:22 TESTIMONY WILL HELP ALL OF TOYOTA'S CUSTOMERS IN A WAY THAT 12:19:25 TOYOTA HAS NOT YET DONE TO THIS DAY. 12:19:29 ONCE AGAIN I'D LIKE TO THANK THIS COMMITTEE FOR TAKING THE 12:19:31 TIME TO LISTEN TO OUR STORY. IT'S ABOUT TIME WE WERE HEARD. 12:19:36 AND HOPE THAT TOYOTA AND NHTSA WILL BE HELD ACCOUNTABLE FOR THE 12:19:42 DECISIONS THAT COST SOME THEIR LIVES. 12:19:46 I THANK YOU. >> THANK YOU, MRS. SMITH. 12:19:51 MR. SMITH, YOUR OPENING STATEMENT. 12:19:53 PLEASE PULL THAT MIKE UP AND -- >> GOOD MORNING. 12:19:58 SORRY, GOOD AFTERNOON. >> GOOD MORNING. 12:19:59 >> GOOD AFTERNOON. I WOULD ALSO LIKE TO TAKE THE 12:20:04 OPPORTUNITY TO THANK THE HONORABLE MEMBERS OF THIS 12:20:06 COMMITTEE FOR INVITING US TO TESTIFY TODAY AND TO SHARE OUR 12:20:10 SUDDEN UNINTENDED ACCELERATION EXPERIENCE ALONG WITH MY 12:20:13 THOUGHTS AND FEELINGS. AS MY WIFE TOLD YOU, MY NAME IS 12:20:18 EDDIE G. SMITH, I'M THE HUSBAND OF RHONDA WHO YOU JUST HEARD 12:20:20 SPEAK. WE PURCHASED THIS 2000 LEXUS ES 12:20:27 350 BECAUSE OF TOYOTA'S EXEMPLARY CLAIM OF SAFETY. 12:20:33 AS WE HAVE YOUNG GRANDCHILDREN. IT HAS BEEN A TRUE EXPERIENCE 12:20:36 TRYING TO DECIDE WHAT TO SAY TODAY. 12:20:40 YOU ALL HEARD MY WIFE DESCRIBE HER EXPERIENCE. 12:20:42 NOW TAKE A MINUTE AND PUT YOURSELF ON THE OTHER END OF THE 12:20:44 CELL PHONE, LISTENING TO WHAT YOU THINK ARE THE LAST WORDS YOU 12:20:47 WILL EVER HEAR HER SPEAK, IN THE IMMINENT DEATH OF YOUR LIFE-LONG 12:20:52 BEST FRIEND AND SPOUSE AND NOT BEING ABLE TO DO ANYTHING ABOUT 12:20:56 IT. BESIDES BEING THE MOST 12:21:00 TERRIFYING, TRAUMATIZING EXPERIENCE OF MY WIFE'S LIFE, IT 12:21:03 IS THE MOST HEART WRENCHING THING I'VE EVER EXPERIENCED. 12:21:06 NEEDLESS TO SAY SHE WAS SPARED BY THE GRACE OF GOD AND IS STILL 12:21:09 BY MY SIDE TODAY. WE HAVE NEVER BEEN CRUSADERS FOR 12:21:13 ANY CAUSE OTHER THAN OUR GOD, FAMILY AND FREEDOM, HOWEVER WE 12:21:17 HAVE BEEN ON A MISSION TO GET THIS THING JUSTICE TO THE 12:21:21 AMERICAN PEOPLE, NOTICED AND ADDRESSED AND FIXED. 12:21:24 TOYOTA WAS INFORMED OF THIS POTENTIALLY DEADLY PROBLEM IN 12:21:28 2006. AND WAS WARNED BY US NUMEROUS 12:21:31 TIMES THAT LIVES WOULD BE LOST IF THIS WAS LEFT UNATTENDED. 12:21:35 WE PHONED, E-MAILED AND WROTE NUMEROUS LETTERS TRYING TO GET 12:21:40 TOYOTA TO FIX THE PROBLEM. OUR COMPLETE CUSTOMER 12:21:44 SATISFACTION THAT WE RECEIVED AS RHONDA SAID WAS A STATEMENT FROM 12:21:49 TOYOTA STATING IF PROPERLY MAINTAINED THE BRAKES WOULD 12:21:52 ALWAYS OVERRIDE ACCELERATIONS. THEY CALLED US LIARS. 12:21:57 NEXT TOYOTA PUSHED US TO ARBITRATION WITH THE NATIONAL 12:22:01 CENTER FOR DISPUTE SETTLEMENT. THIS WAS ONE OF THE BIGGEST 12:22:05 WASTES OF MY TIME AND MY WIFE'S TIME AND MONEY WE HAVE EVER 12:22:08 SEEN. IT WAS A COMPLETE SETUP TRYING 12:22:12 TO MAKE US GO AWAY AND WE DIDN'T. 12:22:15 ONCE AGAIN WE WERE CALLED LIERS AND ACCUSED OF RUINING OUR OWN 12:22:19 BRAKES AND TRANSMISSION. NOW WE HAVE NHTSA, AS YOU KNOW 12:22:28 NHTSA BY THEIR OWN ADMISSION ON THEIR WEBSITE IS -- IT IS OUR 12:22:33 U.S. ADMINISTRATION RESPONSIBLE FOR REDUCING DEATHS, INJURIES 12:22:38 AND ECONOMIC LOSSES AS A RESULT FROM CRASHES. 12:22:41 THEIR MISSION STATEMENT IS TO SAVE LIVES, PREVENT INJURIES AND 12:22:46 REDUCE TRAFFIC-RELATED HEALTH CARE AND OTHER ECONOMIC COSTS. 12:22:52 F FIRST WE GOT THE FEELING THAT 12:22:54 SOMEBODY BELIEVED US AND CARED ENOUGH TO TRY AND PREVENT ANY 12:22:58 FURTHER LOSS OF LIFE. THEY EVEN MADE A TRIP TO INSPECT 12:23:00 OUR VEHICLE. WE FINALLY FELT OUR GOVERNMENT 12:23:02 WOULD ACTUALLY STEP IN AND BRING TOYOTA TO TASK AND RESOLVE THIS 12:23:08 ISSUE, THUS SPARING OTHERS FROM GOING THROUGH THE EXPERIENCE MY 12:23:10 WIFE WENT THROUGH. WERE WE EVER WRONG AGAIN. 12:23:14 NOW THEIR CLAIM WAS IT WAS PROBABLY THE FLOOR MATS. 12:23:18 THIS IS A MASSIVE ORANGE STICKERS WERE THEIR FIX. 12:23:36 THEY WENT THROUGH THE MOTIONS AND TRIED TO APPEASE US WITH 12:23:39 THIS ABSURD THEORY. I WAS PRESENT DURING THE 12:23:43 COMPLETE INVESTIGATION BY MR. YAWN. 12:23:46 THE FLOOR MAT TEST REFERRED TO IN MR. YAWN'S REPORT AS YOU HAVE 12:23:50 ALL READ WAS A COMPLETE FABRICATION OF THE TRUTH. 12:23:53 THIS NEVER HAPPENED AND WAS NEVER SHOWN TO US AT ANY TIME 12:23:57 DURING HIS VISIT. ONCE AGAIN, WE FELT WE HAD ONLY 12:24:00 RECEIVED LIP SERVICE. NOW THAT LIVES HAVE BEEN LOST 12:24:04 AND SUDDEN UNINTENDED ACCELERATION SEEMS TO BE AN 12:24:08 ELECTRONIC ISSUE, WHY DOES TOYOTA AND NHTSA NOT REMEMBER 12:24:12 RHONDA SMITH'S PLEASE 2006 FOR SOMEONE TO TAKE HEED AND FIX 12:24:15 THIS KILLER PROBLEM. MY POINT FROM ALL THIS IS TO SAY 12:24:21 THAT FOR REPORTED RELIABLE AND SAFETY CONCERN COMPANY SUCH AS 12:24:25 TOYOTA CLAIMS TO BE, THEY SURE TOOK THE EASIEST AND CHEAPEST 12:24:29 ROUTE ON THE ELECTRONIC ISSUE BROUGHT TO THEIR ATTENTION BY US 12:24:31 IN 2006. HOW MANY AMERICAN LIVES SHOULD 12:24:36 HAVE BEEN SPARED? OUR CUSTOMER SATISFACTION FROM 12:24:42 TOYOTA AND NHTSA HAS MY WIFE TRAUMATIZED, I WAS LABELED A 12:24:49 DESTRUCTIVE, LYING IDIOT AND I PAID THE REPAIR BILL TO FIX THE 12:24:55 BRAKES ON THE LEXUS. MANY HAVE EXPERIENCED SUDDEN 12:24:59 UNINTENDED ACCELERATION AND UNFORTUNATELY SOME ARE NOT 12:25:01 ALLOWED TODAY TO BE ABLE TO TELL THEIR STORY. 12:25:04 RHONDA IS HERE TODAY TO TESTIFY BEFORE THIS COMMITTEE FOR ALL 12:25:07 THOSE WHO HAVE DIED AND THEIR FAMILIES. 12:25:12 HOPEFULLY SUGGESTION WILL FINALLY BE SERVED. 12:25:14 TO TOYOTA, I SAY YOUR QUALITY AND SAFETY RECORD HAS BEEN 12:25:19 TOTALLY DESTROYED BY YOUR PAST AND PRESENT WORDS AND ACTIONS. 12:25:23 NOW YOUR INTEGRITY HAS COME INTO PLAY. 12:25:27 HOW ARE YOU GOING TO HANDLE THIS? 12:25:29 WE'RE HERE TODAY TO HELP SEE THAT YOU DON'T SHOVE THE 12:25:32 AMERICAN PEOPLE UNDER THE RUG AGAIN, AND THAT YOUR TRUE COLORS 12:25:36 ARE FINALLY REVEALED. TO NHTSA, I FEEL YOU HAVE 12:25:40 TOTALLY FAILED THE AMERICAN PUBLIC AND I PERSONALLY FEEL 12:25:49 YOU, AS OUR GOVERNMENT WATCHDOG, NEED TO STOP FEEDING FROM YOUR 12:25:56 JAPANESE -- THANK YOU VERY MUCH FOR YOUR TIME. 12:25:57 >> THANK YOU. NEXT WE'LL HEAR FROM MR. KANE, 12:25:59 FROM SAFETY RESEARCH AND STRATEGIES. 12:26:02 YOUR OPENING STATEMENT, PLEASE, SIR. 12:26:05 >> YES. THANK YOU, CHAIRMAN STUPAK AND 12:26:06 MEMBERS OF THE COMMITTEE. >> PULL THAT UP A LITTLE BIT 12:26:09 CLOSER. >> THANK YOU, CHAIRMAN STUPAK 12:26:10 AND MEMBERS OF THE COMMITTEE FOR HOLDING THIS IMPORTANT HEARING 12:26:13 AND INVITING ME TO COME TESTIFY BEFORE YOU TODAY. 12:26:15 I'M PRESIDENT AND FOUNDER, WHERE RESEARCH AND ADVOCACY FIRM THAT 12:26:21 SPECIALIZES IN AUTOMOTIVE AND CONSUMER PRODUCT SAFETY ISSUES. 12:26:24 AND IN ADDITION PROVIDING FACTUAL RESEARCH TO ATTORNEYS, 12:26:27 ENGINEERS, CORPORATIONS AND GOVERNMENT. 12:26:29 WE LEVERAGE OUR UNDERSTANDING OF THOSE SAFETY ISSUES TO ADVOCATE 12:26:32 ON BEHALF OF CONSUMERS. THAT'S PART OF MY COMPANY'S 12:26:35 MISSION. THAT'S WHAT I'VE BEEN DOING FOR 12:26:36 NEARLY 20 YEARS. I'VE BEEN INVITED HERE TO REALLY 12:26:43 HELP THE COMMITTEE UNDERSTAND HOW DO WE GET HERE TODAY WITH 12:26:45 TOYOTA UNINTENDED ACCELERATION, HOW THIS PROBLEM UNFOLDED, AND 12:26:48 TO ADDRESS THE VARIOUS RELATED ELECTRONIC ISSUES THAT SEEM TO 12:26:52 BE PART OF THIS ISSUE TODAY. FOR THE RECORD I'M SUBMITTING 12:26:56 OUR REPORT TOYOTA SUDDEN UNINTENDED ACCELERATION WHICH 12:26:59 PROVIDES A DETAIL EXAMINATION OF THE ISSUE. 12:27:04 WE RADIO LEAS RELEASED OUR REPO 5th AND AN ADDENDUM ON THE 15th 12:27:10 FOR THE CRISIS THAT HAS BEEN IN THIS MAKING FOR MANY YEARS. 12:27:13 I'M ALSO SUBMITTING A PRELIMINARY REPORT TOYOTA 12:27:16 ELECTRONIC THROTTLE CONTROL INVESTIGATION WHICH WE 12:27:18 COMMISSIONED WITH AUTOMOTIVE TECHNOLOGY PROFESSOR DR. DAVID 12:27:22 GILBERT OF SOUTHERN ILLINOIS UNIVERSITY CARBON DALE. 12:27:24 DR. GILBERT'S PRELIMINARY REPORT PROVIDES CRITICAL INSIGHT INTO 12:27:28 THE FAIL SAFETY DETECTION CAPABILITIES THE ELECTRICAL 12:27:33 CIRCUITRY AND SOME ELECTRONIC THROTTLE CONTROL VEHICLES 12:27:35 MANUFACTURED BY TOYOTA. IN OUR REPORT, WE LOOK AT THE 12:27:40 COMPLEXITIES AND INCONSISTENCIES IN THE PUBLIC RECORD. 12:27:43 ALMOST EVERYTHING WE HAVE BEEN INFORMED BY IS IN CLEAR VIEW AND 12:27:46 IN THE PUBLIC RECORD. IT IS DIFFICULT TO FIND 12:27:50 SOMETIMES, BUT WE SPEND A LOT OF TIME REVIEWING THOSE RECORDS. 12:27:53 AND WHAT WE HAVE CONCLUDED FROM THE RECORDS THAT WE HAVE 12:27:57 EXAMINED IS THAT NEITHER TOYOTA NOR THE NATIONAL HIGHWAY TRAFFIC 12:28:01 SAFETY ADMINISTRATION HAS IDENTIFIED ALL THE CAUSES OF 12:28:05 SUDDEN UNINTENDED ACCELERATION. THAT CONCERNS US GREATLY. 12:28:15 WE'RE REALLY CONCERNED ABOUT THE UNINTENDED ACCELERATION 12:28:19 CIRCUMSTANCES THAT MANY DRIVES AND WITNESSES REPORTED TO TOYOTA 12:28:21 AND HOW THEY HAVE BEEN HANDLED. THEY'RE ROOTED IN THE FACT THAT 12:28:25 MANUFACTURE THE INCIDENTS DON'T RELATE TO THE RECALLS. 12:28:27 IN OUR ANALYSIS, OF ABOUT 2263 COMPLAINTS WE FOUND THAT NEARLY 12:28:34 HALF FALL OUTSIDE OF ANY RECALL WHATSOEVER. 12:28:39 LISTENING TO THE EXPERIENCES OF THE SMITHS AS A LEXUS RACED DOWN 12:28:44 THE HIGHWAY, THEY'RE FORTUNATE TO BE HERE TODAY. 12:28:47 OTHERS ARE LESS FORTUNATE. THE PROBLEM MAY BE RARE, BUT IT 12:28:50 IS SERIOUS. JEFF PEPSKI, HE PETITIONED NHTSA 12:28:55 TO INVESTIGATE THE DEFECT IN HIS LEXUS. 12:28:57 HE ALSO EXPERIENCED UNINTENDED ACCELERATION AT A HIGHWAY SPEED. 12:29:01 TO TRY TO BRING AND CAR UNDER CONTROL, HE PUT HIS FOOT UNDER 12:29:05 THE PEDAL TO PULL BACK ON THE PEDAL. 12:29:08 NEITHER ONE OF THOSE RELATE BACK TO THE RECALL ISSUES. 12:29:12 IF IT WAS A STICKY PEDAL, THAT PEDAL WOULD HAVE RETURNED WITH 12:29:15 THE FOOT. IF IT WAS A FLOOR MAT, IT WOULD 12:29:17 HAVE BEEN CREPT UP AND FORWARD AND WOULD HAVE HAD TO HAVE BEEN 12:29:21 AN ALL WEATHER FLOOR MAT. HE HAD CARPETED FLOOR MATS IN 12:29:23 HIS VEHICLE. YEARS OF MOUNTING EVIDENCE 12:29:25 INCLUDING EIGHT NHTSA INVESTIGATIONS, SIX OF THEM AT 12:29:29 THE REQUEST OF COUNTLESS UNINTENDED 12:29:36 ACCELERATION INCIDENTS YIELDED IN A COUPLE OF RECALLS. 12:29:40 IT TOOK A HORRIFIC CRASH THAT OCCURRED ON AUGUST 28th, 2009 TO 12:29:43 KILL THE CHP OFFICER AND HIS FAMILY. 12:29:46 THAT HAUNTING 911 CALL. IT WAS A WATER SHED MOMENT IN 12:29:53 THIS CRISIS. TOYOTA'S NEGLECT TO -- FAILURE 12:29:58 TO ADDRESS THE ROOT CAUSES AND INVESTIGATE THE CONSUMER CLAIMS 12:30:04 DESPITE THE STEADY STREAM OF THESE CLAIMS, IT IS HARD TO 12:30:07 UNDERSTAND WHY CHP OFFICER COULDN'T BRING CONTROL TO HIS 12:30:11 CAR. THE EVIDENCE IN NHTSA'S PUBLIC 12:30:13 RECORDS IS AMBIGUOUS. IF IT WAS FLOOR MAT, TOYOTA'S 12:30:17 GUILTY OF FAILING TO ACKNOWLEDGE A SERIOUS AND REAL CONSEQUENCE 12:30:20 OF PEDAL ENTRAPMENT FOR YEARS. SINCE THE AGENCY REPORTED OUT IN 12:30:24 2007 INVESTIGATION DRIVERS COULD EASILY -- THEY COULD EASILY STOP 12:30:28 A RUNAWAY VEHICLE. THE INCORRECT FLOOR MAT COULD 12:30:31 CAUSE THIS KIND OF PROBLEM THIS SIGNIFICANT OUTCOME, IT SPEAKS 12:30:35 VOLUMES TO THE WAY TOYOTA HANDLED THE SAFETY ISSUES TODAY. 12:30:38 THE SIMPLEST OF PROBLEMS, A FLOOR MAT INTERFERENCE, HASN'T 12:30:42 BEEN HANDLED APPROPRIATELY F FLOOR MAT DIDN'T CONFINE THE 12:30:46 PEDAL, THEN TOYOTA, LEXUS OWNERS HAVE A REAL CAUSE FOR WORRY THAT 12:30:50 THEIR VEHICLES HAVE AN UNIDENTIFIED DEFECT CONSTITUTING 12:30:53 A SEVERE SAFETY HAZARD. BASED ON OUR SURVEILLANCE OF THE 12:30:58 COMPLAINT DATA, WHICH IS IN THE PUBLIC RECORD, EXTENSIVE 12:31:00 INTERVIEWS WITH CONSUMERS WHO EXPERIENCED SUA, THE BENEFIT OF 12:31:04 A SCIENTIFIC STATISTICAL ANALYSIS BY QUALITY CONTROL 12:31:08 SYSTEMS WE CHOSE TO FOCUS OUR ATTENTION ON THE ELECTRONIC 12:31:11 THROTTLE CONTROL SYSTEM, DRIVE BY WIRE. 12:31:15 FOLLOWING AN SUA INCIDENT, CONSUMERS REPORT TO TOYOTA 12:31:19 DEALERS THAT THEIR FIELD TECHNICAL SPECIALIST COULD FIND 12:31:21 NO TECHNICAL RELATED PROBLEMS, SPECIFICALLY THEY REPORT THE 12:31:25 ABSENCE OF A DIAGNOSTIC TROUBLE CODE, AN ERROR CODE. 12:31:30 TOYOTA ARGUED ITS ELECTRONIC THROTTLE CONTROL DESIGN AND FAIL 12:31:35 SAFE SYSTEMS WERE BUILT WITH MULTIPLE REDUNDANCIES. 12:31:42 IN RESPONSE TO NHTSA, THE COMPANY FLATLY REJECTED THE 12:31:46 CONCEPT OF UNINTENDED ACCELERATION, THEY STATED, I 12:31:49 QUOTE, WITH REGARD TO ALLEGATIONS OF UNINTENDED 12:31:51 ACCELERATION, TOYOTA DOES NOT BELIEVE THAT UNCONTROLLED 12:31:55 ACCELERATION CAN OCCUR WITHOUT THE DRIVER APPLYING THE 12:31:58 ACCELERATOR PEDAL. IF AN ABNORMAL CONDITION OCCURS 12:32:00 LIKE ETC, THE ELECTRONIC THROTTLE CONTROL, SENDING THE 12:32:03 SIGNAL TO A THROTTLE BODY, TO OPEN THE THROTTLE WITHOUT 12:32:07 APPLYING THE ACCELERATOR PEDAL OR A MALFUNCTION OF THE SYSTEM 12:32:10 OR THE THROTTLE WERE TO OPEN ON ITS OWN, THE SYSTEM WOULD GO 12:32:13 INTO FAIL SAFE MODE. BECAUSE DRIVERS REAL WORLD 12:32:17 EXPERIENCES ARE RUNNING C 12:32:23 COUNTERTO WHAT THE STATEMENTS EXPECT, WE FELT IT WAS IMPORTANT 12:32:25 TO EXAMINE THAT MALFUNCTION DETECTION SYSTEM IN THE FAIL 12:32:28 SAFE CAPABILITIES OF TOYOTA'S VEHICLES WITH ETS. 12:32:33 WE COMMISSIONED SOME RESEARCH IN THIS AREA. 12:32:35 THE FINDINGS ARE STILL VERY PRELIMINARY, BUT THEY'RE URGENT. 12:32:40 THE URGENT NATURE OF THEM HAS HAD US WORKING LONG NIGHTS AND 12:32:44 WEEKENDS WITH DR. GILBERT TO GET THE PRELIMINARY REPORT TO THIS 12:32:47 COMMITTEE. WE HAVE LEARNED FROM 12:32:50 DR. GILBERT'S PRELIMINARY STUDY THAT THERE ARE CONDITIONS IN THE 12:32:53 TOYOTA AND LEACHOUS MODELS TESTED IN WHICH THE REDUN DAN 12:32:57 SAY OF ELECTRONIC CIRCUITS IN THE ELECTRONIC THROTTLE CONTROL 12:33:00 ARE LOST. PARTICULARLY IN WHAT IS CALLED 12:33:01 THE ACCELERATOR PEDAL POSITION SENSOR. 12:33:05 LOSING CIRCUIT REDUNDANCY IN THE SYSTEM CREATES A LOSS OF FAIL 12:33:08 SAFE MODES THAT TOYOTA PROGRAMMED AND THE SYSTEM WILL 12:33:11 NOT DETECT AN ERROR, NO DTC, NO DOCTOR TICK TROUBLE CODES ARE 12:33:14 FOUND. ONCE THIS HAPPENS, YOU NOW 12:33:19 LOADED THE GUN. IN THIS STATE, LACKING REDUNDANT 12:33:24 FAIL SAFE VARIOUS SCENARIOS COULD BE INTRODUCED IN THE 12:33:27 ELECTRONIC CONTROL MODULE, THE COMPUTER, THAT READ THROTTLE 12:33:31 WITHOUT ANY INPUT FROM THE DRIVER AND, AGAIN, WITHOUT 12:33:36 SETTING A SINGLE DIAGNOSTIC TRIAL CODE, NO ERRORS. 12:33:39 THIS SHOULD NEVER HAPPEN. SIMPLY INCREASING VOLTAGE TO THE 12:33:45 PEDAL POSITION SENSOR WHILE IN A COMPROMISED STATE CAN INDUCE 12:33:47 THIS UNCOMMANDED WIDE OPEN THROTTLE CONDITION. 12:33:50 THESE SCENARIOS CAN OCCUR BECAUSE TOYOTA'S FAIL SAFE 12:33:52 PARAMETERS ARE BROAD. THE DESIGN THAT ALLOWS A WIDE 12:33:55 WINDOW OF OPPORTUNITY FOR PROBLEMS TO OCCUR THAT ARE NOT 12:33:56 SEEN AS ABNORMAL BY THE COMPUTER. 12:34:00 DR. GILBERT'S TESTING DEMONSTRATES VEHICLES CAN REACT 12:34:02 TO SENSOR ERROR IN WAYS THAT APPEAR CONSISTENT WITH CONSUMER 12:34:06 COMPLAINTS OF UNINTENDED ACCELERATION. 12:34:08 WE MUST EMPHASIZE THAT AT THIS POINT IT IS GOING TO TAKE 12:34:11 ADDITIONAL RESEARCH TO MAKE THE CONNECTION BETWEEN THE TWO. 12:34:14 BUT AS WORK PROVIDES IMPORTANT BASELINE FOR UNDERSTANDING 12:34:17 POTENTIAL ELECTRONIC ROOT CAUSES OF UNINTENDED ACCELERATION IN 12:34:20 TOYOTA VEHICLES. AT THIS POINT, WE SIMPLY HAVE 12:34:22 TWO BOOK ENDS, ONE END OF IT IS DR. GILBERT'S ANALYSIS WHICH 12:34:25 FINDS THERE ARE HOLES IN THE TOYOTA SYSTEM THAT CAN ALLOW 12:34:28 THESE FAILURES TO OCCUR UNDETECTED. 12:34:30 ON THE OTHER HAND, WE HAVE GOT REPORTS FROM FOLKS LIKE THE 12:34:34 SMITHS WHOSE CLEARLY THEIR INCIDENTS ARE RELATED TO 12:34:37 ELECTRONIC PROBLEMS AND YET NO DIAGNOSTIC TROUBLE CODES ARE 12:34:40 FOUND WHEN THE CARS ARE BROUGHT IN. 12:34:42 >> I'LL ASK YOU TO WRAP IT UP. >> SO HOW DO WE GET HERE TODAY? 12:34:46 WE GET HERE TODAY BECAUSE LIKE MANY LARGE SCALE PROBLEMS 12:34:49 THEY'RE COMPLICATED, MULTIFACETED, MULTIROOT CAUSE. 12:34:52 THERE IS NO ONE SIMPLE SOLUTION. AT THIS POINT, THERE IS MUCH 12:34:55 WORK TO BE DONE AND WE BELIEVE THAT BOTH TOYOTA AND NATIONAL 12:35:00 HIGHWAY TRAFFIC ADMINISTRATION PLAY A ROLE IN HOW WE GOT HERE 12:35:03 TODAY BUT THIS IS SQUARELY T 12:35:07 TOYOTA'S PROBLEM. THEY CREATED THIS CRISIS AND IT 12:35:08 HAS BEEN FESTERING FOR YEARS. IT TOOK A CRASH TO CAPTURE THE 12:35:12 NATION'S ATTENTION TO GET THIS IN A PLACE WHERE IT IS TODAY. 12:35:13 THANK YOU. >> THANK YOU, MR. KANE. 12:35:16 MR. GILBERT, YOUR OPENING STATEMENT. 12:35:18 I'LL ASK YOU TO TURN THAT MIKE ON AND PULL IT TOWARDS YOU MORE. 12:35:24 >> CHAIRMAN WAXMAN, SUBCOMMITTEE CHAIRMAN STUPAK AND HONORABLE 12:35:29 MEMBER OF THE COMMITTEE AND ON ENERGY AND COMMERCE, I THANK YOU 12:35:32 FOR HOLDING THIS IMPORTANT HEARING AND ALLOWING ME THE 12:35:35 OPPORTUNITY TO TESTIFY BEFORE YOU TODAY. 12:35:38 EXCUSE ME. LIKE SO MANY OF YOU HAVE 12:35:43 EXPRESSED, I HAVE NOTHING AGAINST THE TOYOTA MOTOR 12:35:47 COMPANY. THEY HAVE A FINE REPUTATION OF 12:35:50 BUILDING A TRADITIONAL LINE OF VERY DEPENDABLE VEHICLES. 12:35:54 THEY HAVE BEEN VERY SUPPORTIVE THE SCHOOL OF WHICH I WORK. 12:35:59 I THOUGHT ENOUGH OF THE PRODUCT BRAND TO PUT MY SON IN ONE. 12:36:04 AND SO WITH THAT SAID, A LITTLE BIT ABOUT MYSELF, I'VE BEEN A 12:36:08 TECHNICAL EDUCATOR INVOLVED WITH AUTOMOTIVE DIAGNOSTICS AND 12:36:13 TROUBLESHOOTING FOR SEVERAL YEARS. 12:36:16 I'VE WITNESSED MANY CHANGES OVER THAT TIME. 12:36:17 WHEN I FIRST BEGAN TEACHING, AT NORTHEASTERN OKLAHOMA COLLEGE, 12:36:22 ELECTRONIC FUEL INJECTED VEHICLES WERE RELATIVELY NEW. 12:36:25 OVER THE YEARS AUTOMOTIVE TECHNOLOGIES CONTINUED TO 12:36:29 PROGRESS FROM FUNDAMENTAL MECHANICAL SYSTEMS TO MORE 12:36:32 SOPHISTICATED ELECTRICAL AND ELECTRONIC SYSTEMS. 12:36:33 NOW AS AN AUTOMOTIVE TECHNICAL EDUCATOR AT SOUTHERN ILLINOIS 12:36:37 UNIVERSITY IN CARBON DALE, I FOUND ELECTRONIC DIAGNOSTIC 12:36:41 SKILLS TO BE SUPREMELY IMPORTANT IN DIAGNOSING AND REPAIRING 12:36:43 MODERN AUTOMOBILES. I HAVE SPENT MANY HOURS STUDYING 12:36:50 AND ANALYZING NEW CIRCUITS AND COMPONENTS. 12:36:53 BASED ON MY KNOWLEDGE OF REAL WORLD FAILURES AND COMPONENTS, I 12:37:01 DUPLICATE MANY ELECTRICAL PROBLEMS IN DONATED VEHICLES FOR 12:37:02 MY STUDENTS TO STUDY AND DIAGNOSE. 12:37:03 THIS PROVIDES MY STUDENTS WITH AN OPPORTUNITY TO ANALYZE WIRING 12:37:08 SCHEMATICS, SERVICE INFORMATION AND ACTIVELY DIAGNOSE PROBLEMS. 12:37:14 GRADUATES FOUND EMPLOYMENT IN VIRTUALLY EVERY ASPECT OF THE 12:37:17 AUTOMOTIVE INDUSTRY. STUDENTS GRADUATING FROM SAU 12:37:19 HAVE THE TECHNICAL SKILLS TO WORK CLOSELY WITH AUTOMOTIVE 12:37:22 DESIGN ENGINEERS, TO ENSURE RELIABILITY VEHICLE SERVICE IN 12:37:26 REAL WORLD SITUATIONS. I BELIEVE THE EXEMPLARY STUDENT 12:37:30 PLACEMENT RECORD IS THE RESULT OF THE RIGOR OF THE PROGRAM AND 12:37:33 THE EMPHASIS IS ON PROBLEM SOLVING. 12:37:35 IT STANDS TO REASON THEN THAT MY DAILY TEACHING RESPONSIBILITIES 12:37:40 WOULD INCLUDE APPLICATION AND UNDERSTANDING OF ELECTRONIC 12:37:43 THROTTLE CONTROL DIAGNOSTICS. I HAD THE UNIQUE PERSPECTIVE IN 12:37:46 MY EMPLOYMENT TO RESEARCH AND STUDY MULTIPLE VEHICLES AND 12:37:49 ELECTRONIC THROTTLE CONTROL SYSTEM DIAGNOSTICS. 12:37:52 IN THIS PRELIMINARY REPORT MY INITIAL FINDINGS QUESTIONED THE 12:37:58 INTEGRITY AND CONSISTENCY OF TOYOTA ELECTRONIC CONTROL 12:38:00 MODULES TO DETECT POTENTIAL ELECTRONIC THROTTLE CONTROL 12:38:03 SYSTEM MALFUNCTIONS. THE ABSENCE OF THE STORED 12:38:09 DIAGNOSTIC TROUBLE CODE IS NO GUARANTEE THAT A PROBLEM DOES 12:38:12 NOT EXIST. I INSTRUCT ALL MY AUTOMOTIVE 12:38:14 STUDENTS WITH THIS FUNDAMENTAL STATEMENT. 12:38:16 YOU CAN HAVE A CODE WITH NO PROBLEM, AND YOU CAN HAVE A 12:38:19 PROBLEM WITH NO CODE. BY CURIOSITY WITH TOYOTA 12:38:23 ELECTRONIC THROTTLE CONTROL SYSTEMS BEGAN SIMPLY WITH SEARCH 12:38:26 FOR THE TRUTH. CONCERNING UNINTENDED 12:38:31 ACCELERATION. I RECENTLY PURCHASED A 2010 12:38:34 TOYOTA TUNDRA AND WITH A GROWING ATTENTION IN THE MEDIA TO WHAT 12:38:37 SEEMED TO BE INCREASING EVENTS OF SUDDEN UNINTENDED 12:38:40 ACCELERATION, I MADE THE DECISION TO INVESTIGATE THE 12:38:43 FOUNDATION OF THESE CLAIM ON MY OWN. 12:38:45 BASED ON MY WORKING KNOWLEDGE OF ELECTRONIC THROTTLE CONTROLS, I 12:38:50 DID NOT EXPECT THE SYSTEM TO BE EASILY FOOLED WITHOUT DETECTING 12:38:53 A CIRCUIT FAULT AND SETTING A DIAGNOSTIC TROUBLE CODE. 12:38:58 I MADE A STARTLING DISCOVERY, ELECTRICAL CIRCUIT FAULTS COULD 12:39:01 BE INTRODUCED IN THE THROTTLE CONTROL SYSTEM WITHOUT SETTING A 12:39:05 CODE. THE DISCOVERY OPENED A WINDOW OF 12:39:07 OPPORTUNITY WITHIN THE ELECTRONIC THROTTLE CONTROL 12:39:09 SYSTEM FOR POTENTIAL PROBLEM WITHOUT A CODE. 12:39:12 WITHOUT A CODE SET, THE VEHICLE COMPUTER WILL NOT LOGICALLY 12:39:15 ENTER INTO A FAIL SAFE MODE OF OPERATION. 12:39:18 ALL VEHICLE MANUFACTURERS HAVE RECOMMENDED OR HAVE RECOGNIZED 12:39:22 THE IMPORTANCE OF ELECTRONIC THROTTLE CONTROL SYSTEMS TO 12:39:25 PERFORM EXACTLY AS THEY INTENDED. 12:39:28 SINCE THE VEHICLE COMPUTER WILL ONLY REACT TO DEFECTIVE SENSOR 12:39:31 INPUTS OUTSIDE THE RANGE OF THE PROGRAM LIMITATIONS, IF THE 12:39:34 CIRCUIT IS DEFECTIVE, AS FAR AS THE COMPUTER IS CONCERNED, IT 12:39:37 MUST BE GOOD. KNOWING SYSTEMS AND COMPONENTS 12:39:43 ARE VITAL TO SAFE OPERATION. I PROCEEDED TO INVESTIGATION THE 12:39:47 PROBLEM WITH MUCH MORE URGENCY. BECAUSE OF ITS ROLE TO 12:39:50 ACCURATELY CONVEY THE VEHICLE DRIVER DEMANDS FOR THROTTLE 12:39:53 OPENING, ACCELERATOR PEDAL SENSOR VOLTAGE INPUTS NEED TO BE 12:39:57 CONFIRMABLE BY THE VEHICLE'S COMPUTER AS ABSOLUTELY CORRECT. 12:40:01 A COMPLETE OR PARTIAL FAILURE OF THESE ELECTRONIC SIR CURT, 12:40:04 SENSORS, WIRING OR ACTUATORS IN COMBINATION WITH AN ABSENCE OF 12:40:07 FAIL SAFE STRATEGIES COULD POTENTIALLY RESULT IN A RUNAWAY 12:40:09 ENGINE. THE IMPORTANCE OF THESE ISSUES 12:40:13 RAISED IN ELECTRONIC THROTTLE CONTROL SYSTEM, FAIL SAFE 12:40:15 STRATEGIES SHOULD NOT BE UNDERESTIMATED. 12:40:18 SUDDEN UNINTENDED ACCELERATION OF VEHICLES IS A VERY SERIOUS 12:40:23 SAFETY CONCERN THAT NEEDS TO BE ADDRESSED WITHOUT DELAY. 12:40:25 THANK YOU. >> THANK YOU, MR. GILBERT. 12:40:30 THAT CONCLUDES TESTIMONY. WE'LL GO TO QUESTIONS. 12:40:32 I'M GOING TO START WITH CHAIRMAN OF THE FULL COMMITTEE, MR. 12:40:35 WAXMAN, PLEASE. >> THANK YOU VERY MUCH. 12:40:37 I WANT TO THANK ALL THE WITNESSES FOR YOUR TESTIMONY ON 12:40:41 THIS FIRST PANEL. TOYOTA HAS MAINTAINED OVER AND 12:40:45 OVER AGAIN THAT IT IS NOT THE ELECTRONICS, IT IS NOT THE 12:40:49 ELECTRICAL SYSTEM. THERE ARE OTHER REASONS TO 12:40:52 EXPLAIN THE SUDDEN UNINTENDED ACCELERATION. 12:40:55 BUT THE ONLY DOCUMENT THAT THEY GAVE US TO ADDRESS THE 12:40:59 PHENOMENON OF SUDDEN UNINTENDED ACCELERATION IN A SYSTEMATIC WAY 12:41:02 WAS A REPORT FROM THIS MONTH, DONE BY AN OUTSIDE ENGINEERING 12:41:10 CONSULTING FIRM CALLED EXPONENT. THEY SAID IT WAS NOT A GOOD 12:41:19 ANALYSIS. THEY THOUGHT IT FAILED TO FOLLOW 12:41:24 A SCIENTIFIC -- FAILED TO STAND UP TO SCIENTIFIC EVALUATION. 12:41:29 SO IF EXPONENT'S ANALYSIS DOESN'T ADEQUATELY EXPLAIN 12:41:34 THINGS, WE NEED TO FIND ANOTHER EXPLANATION. 12:41:36 NOW WE'RE GOING TO HEAR FROM MR. LENTZ AND HE IS GOING TO SAY TO 12:41:43 US THAT -- THAT IT -- WE HAVE DESIGNED OUR ELECTRONIC THROTTLE 12:41:48 CONTROL SYSTEMS WITH MULTIPLE FAIL SAFE MECHANISMS TO SHUT OFF 12:41:52 OR REDUCE ENGINE POWER IN THE EVENT OF A SYSTEM FAILURE. 12:41:57 WE HAVE NEVER FOUND A MALFUNCTION THAT CAUSED 12:42:00 UNINTENDED ACCELERATION. THAT'S MR. LENTZ'S TESTIMONY, 12:42:03 WE'LL HEAR IT IN A LITTLE BIT. DR. GILBERT, YOU'VE GIVEN US A 12:42:10 PRELIMINARY REPORT. YOU LOOKED AT AN ALTERNATIVE 12:42:13 EXPLANATION TO TEST THIS HYPOTHESIS. 12:42:17 BRIEFLY, AND IN LAYMAN TERMS, WHAT DID YOU FIND, THAT IT IS 12:42:21 POSSIBLE TO HAVE ELECTRONIC FAILURE? 12:42:25 >> FIRST OFF, IT REQUIRES A FULL UNDERSTANDING OF THE SYSTEM. 12:42:31 THE ACCELERATOR PEDAL POSITION SENSOR INPUT INTO THE PCM IS AN 12:42:35 INPUT DIRECTLY FROM THE DRIVER. IF THAT CIRCUITRY OR IF THAT 12:42:42 SENSOR IS IN ERROR, THEN IT IS QUITE POSSIBLE THAT THAT COMMAND 12:42:46 THAT IS BEING GIVEN TO THE VEHICLE'S ONBOARD COMPUTER WILL 12:42:51 BE ACCEPTED AS A VALID REQUEST TO OPEN THE THROTTLE. 12:42:56 AS A RESULT OF THAT, THAT'S WHERE I FOCUS MY INVESTIGATION 12:43:00 AT THE VERY BEGINNING. >> THEY HAVE A FAIL SAFE BUILT 12:43:03 IN. ARE YOU SAYING THE FAIL SAFE 12:43:06 FAILED? >> THE FAIL SAFE WILL ONLY COME 12:43:09 INTO PLAY IF THE VEHICLE'S ONBOARD COMPUTER IS ABLE TO 12:43:12 DETECT A FAULT IN THE CIRCUIT. WHAT MY PRELIMINARY FINDINGS 12:43:17 HAVE SHOWN IS THAT THERE IS A -- THERE IS A LARGE AMOUNT OF 12:43:25 LENIENCY IN THE PROGRAMMING OF THE -- OF THE FAIL SAFE 12:43:30 STRATEGIES THAT WILL ALLOW CERTAIN ABNORMALITIES TO OCCUR 12:43:36 WITHOUT THE VEHICLE'S ONBOARD COMPUTER BEING ABLE TO DETECT 12:43:39 THAT A FAULT EXISTS. >> IS THIS LIKE AN ELECTRONIC 12:43:43 SHORT BETWEEN TWO PEDAL SENSORS THAT COULD OVERRIDE THE FAIL 12:43:46 SAFE, MEANING THAT A FAILURE WOULD NOT BE READ AS AN ERROR 12:43:49 AND WOULD NOT CUT OFF ENGINE POWER IN A SUDDEN UNINTENDED 12:43:54 ACCELERATION SITUATION? >> IT COULD BE INTERPRETED AS A 12:43:57 SHORT, YES, IT COULD. >> SO IN OTHER WORDS YOU 12:43:59 DISCOVERED A SCENARIO WHERE A FAILURE IN TOYOTA'S ACCELERATOR 12:44:04 PEDAL SENSORS WOULD NOT TRIGGER AN ERROR CODE, AND WOULD NOT CUT 12:44:07 OFF THE ENGINE POWER IN THE EVENT OF A FAILURE. 12:44:10 HOW LONG DID IT TAKE YOU TO DISCOVER THIS PROBLEM? 12:44:14 DID YOU SPEND MILLIONS OF DOLLARS AND SPEND YEARS STUDYING 12:44:19 IT? >> WELL, IF I MIGHT SAY, AFTER 12:44:20 30 YEARS OF AUTOMOTIVE TECHNOLOGY TEACHING AND 12:44:26 ELECTRONIC ENGINE CONTROLS, I DISCOVERED IT IN ABOUT 3 1/2 12:44:31 HOURS. >> 3 1/2 HOURS. 12:44:32 >> YES. >> HOW MUCH MONEY DID THIS TAKE 12:44:34 FOR YOU TO SPEND TO COME UP WITH THIS CONCLUSION? 12:44:38 >> WITH THE EQUIPMENT THAT I HAD ON HAND, BASICALLY VERY LITTLE, 12:44:45 IF ANYTHING. >> WELL, IT IS MERELY ASTOUNDING 12:44:49 BECAUSE WHAT YOU'RE DESCRIBING ARE FINDINGS FOR US THAT RELATE 12:44:54 TO REPORTS OF SUDDEN UNINTENDED ACCELERATION AND MY 12:45:00 UNDERSTANDING IS THAT YOU DID THIS, BUT TOYOTA DID NOT. 12:45:03 DID YOU REPORT YOUR FINDINGS TO TOYOTA AND HAVE YOU HEARD FROM 12:45:06 THE COMPANY ABOUT YOUR REPORT? >> YES, SIR, I DID. 12:45:11 I PLACED A CALL TO TOYOTA IN CALIFORNIA THROUGH THE CHANNELS 12:45:17 THAT I KNEW. AND DAYS WENT BY WITHOUT A 12:45:24 REPLY. AND EVENTUALLY THEY DID CALL ME 12:45:26 BACK AND I TALKED WITH -- I'M TOLD SOME ENGINEERS WITH TOYOTA 12:45:34 AND I TOLD THEM EXACTLY WHAT I HAD DONE AND EXPRESSED MY 12:45:40 CONCERN FOR THIS TYPE OF A PROBLEM. 12:45:45 AND IN THAT CONVERSATION, I TOLD THEM THAT, YOU KNOW, 12:45:48 SPECIFICALLY, I SAID WHAT I'VE DONE IS I'VE INTRODUCED A FAULT 12:45:54 IN THE SYSTEM THAT SHOULD HAVE W 12:45:59 BEEN DETECTED AS A CIRCUIT FAULT, AND REDUCED ENGINE POWER. 12:46:01 >> CAN WE SAY WITH CERTAINTY WHAT YOU HAVE CONCLUDED IS THE 12:46:04 ABSOLUTE CAUSE FOR THE SUDDEN -- >> NO, SIR. 12:46:07 WHAT THIS DOES IS THIS OPENS THE OPPORTUNITY TO HAVE OTHER 12:46:13 PROBLEMS OCCUR WITHOUT DETECTION. 12:46:16 >> SO THE ESSENTIAL POINT HERE IS THAT IF TOYOTA DIDN'T BELIEVE 12:46:21 THIS COULD HAPPEN, THEY DIDN'T LOOK FOR IT. 12:46:23 THEY LOOKED FOR OTHER EXPLANATIONS, THE DRIVER WAS 12:46:26 STEPPING ON THE PEDAL, THE FLOOR MAT WAS A PROBLEM, THE PEDAL WAS 12:46:30 STICKY, THEY DIDN'T LOOK AT THE FACT THAT THE ELECTRONIC 12:46:34 THROTTLE MIGHT HAVE BEEN A PROBLEM BECAUSE THEY HAD A FAIL 12:46:37 SAFE, BUT THEY DIDN'T LOOK TO SEE IF THE FAIL SAFE FAILED. 12:46:41 MR. CHAIRMAN, I JUST THINK THAT WE NEED TO LOOK AT ALL THE 12:46:46 EXPLANATIONS AND NOT TO PUT BLINDERS IN THE WAY WHICH TOYOTA 12:46:49 APPARENTLY DID IN TRYING TO ASSESS THE REASON FOR A SERIOUS 12:46:56 PROBLEM IN MANY OF THOSE VEHICLES. 12:46:57 THANK YOU VERY MUCH. >> THANK YOU, MR. WAXMAN. 12:46:58 MR. BARTON FOR QUESTIONS. >> THANK YOU, MR. CHAIRMAN. 12:47:03 BEFORE I WANT TO ASK SOME QUESTIONS, MR. GILBERT, WANT TO 12:47:07 ASK MR. AND MRS. SMITH SOME QUESTIONS FIRST. 12:47:10 I LISTENED TO YOUR TESTIMONY, WATCHED IT ON TELEVISION IN MY 12:47:13 OFFICE, SO I WAS -- I'VE BEEN PARTICIPATING VISUALLY IN THE 12:47:17 HEARING EVEN THOUGH I HAVEN'T BEEN HERE IN PERSON. 12:47:19 MRS. SMITH, WHEN YOUR CAR WAS GOING DOWN THE HIGHWAY, IT JUST 12:47:23 KIND OF WENT CRAZY. THAT'S A VERY NONTECHNICAL TERM, 12:47:28 BUT IT -- AND YOU APPARENTLY DID EVERYTHING YOU COULD, YOU TRIED 12:47:32 TO PUT IT IN NEUTRAL, YOU TRIED TO TURN THE IGNITION OFF, YOU 12:47:36 PUT BOTH FEET ON THE BRAKE, AND IT JUST KEPT GOING, ISN'T THAT 12:47:38 RIGHT? >> THAT'S CORRECT. 12:47:42 >> AND SOMEHOW GOD INTERVENED AND IT SLOWED DOWN AND YOU 12:47:46 FINALLY GOT OUT OF THE CAR. WHEN YOU CALL THE TOYOTA PEOPLE 12:47:51 TO COME, DID THEY TAKE PHYSICAL POSSESSION OF YOUR CAR? 12:47:56 >> WE DIDN'T -- WE DIDN'T CALL THE TOYOTA PEOPLE. 12:47:58 >> YOU DIDN'T CALL THE TOYOTA PEOPLE? 12:48:00 >> NO. WE JUST CALL -- WE HAD AAA. 12:48:05 >> DID ANYBODY INSPECT THE CAR TO SEE IF THERE WERE PHYSICAL 12:48:13 CUTS IN THE WIRING OR SOMEHOW THE ELECTRICAL COMPONENTS HAD 12:48:20 BEEN SHORTED OUT? DID ANYBODY DO THAT INSPECTION? 12:48:23 >> MAY I ANSWER THAT? >> YES, SIR. 12:48:26 >> I WAS IN MY VEHICLE TRYING TO CATCH UP WITH HER, WHICH WAS 12:48:31 IMPOSSIBLE, JUST TO BE THERE. WHEN I GOT THERE, SHE WAS STILL 12:48:35 SITTING IN THE VEHICLE. I INSPECTED WHAT A MAN WOULD 12:48:39 NORMALLY INSPECT TO SEE IF THERE WAS ANYTHING WRONG WITH IT, 12:48:42 WHICH INCLUDES FLOOR MATS AND THIS WAS NOT A FLOOR MAT 12:48:45 PROBLEM. >> I KNOW. >> MY ANSWER TO YOUR QUESTION IS 12:48:48 WE HAD THE CAR TOWED TO SEVIERVILLE AND INDIRECTLY TO 12:48:53 THE LEXUS DEALER IN KINGSPORT, TENNESSEE, ON A ROLLBACK 12:48:58 WRECKER. NO ONE TOUCHED THE VEHICLE UNTIL 12:49:00 IT GOT TO THE LEXUS DEALERSHIP. NOW, WERE THERE WIRES CUT, WERE 12:49:06 THERE NOT WIRES CUT -- >> I'M NOT INSINUATING 12:49:09 EVERYTHING. >> WE DON'T KNOW. 12:49:11 >> I'LL STIPULATE THAT YOUR TESTIMONY IS CREDIBLE. 12:49:15 YOU HAD A RUNAWAY VEHICLE. IT WASN'T CAUSED BY FLOOR MAT 12:49:19 PROBLEM. IT WASN'T CAUSED BY YOU PUTTING 12:49:22 YOUR FOOT ON THE PEDAL AND GOING TO SLEEP, SOMETHING WENT WILD IN 12:49:26 YOUR CAR. >> YES, SIR. 12:49:27 >> SO WHAT I'M TRYING TO FIND OUT IS BASED ON WHAT MR. GILBERT 12:49:32 SAID, HE'S CREATED SOME SORT OF A FAULT SITUATION IN THE 12:49:37 ELECTRONICS, AND I'M JUST INTERESTED IF ANYBODY INSPECTED 12:49:40 YOUR CAR AFTER THE FACT TO SEE IF, IN FACT, THERE WAS A -- A 12:49:48 SHORT CIRCUIT? AND, AGAIN, I LOOKED UNDER THE 12:49:51 HOOD OF A TOYOTA YESTERDAY AND IT -- THERE IS SO MUCH STUFF 12:49:55 UNDER THERE NOW, I COULDN'T WORK ON ONE IF MY LIFE DEPENDED ON 12:49:58 IT. SO, YOU KNOW, I DON'T KNOW HOW 12:50:01 I -- BUT I WOULD ASSUME IF TOYOTA ACTUALLY INSPECTED YOUR 12:50:05 CAR, THEY WOULD HAVE TORN THE THING APART TRYING TO FIND OUT 12:50:08 WHAT THE PROBLEM IS. DID THAT HAPPEN? 12:50:09 >> NO, SIR. >> TO YOUR KNOWLEDGE? 12:50:12 >> MR. LAMONT, HE WAS THE FIELD TECHNICIAN FOR LEXUS THAT WAS 12:50:16 SENT TO KINGSPORT. HIS REPORT BACK 12:50:20 HIS REPORT BACK TO US WAS THERE WAS NOTHING WRONG WITH IT. 12:50:24 >> MR. CHAIRMAN, HAS MY TIME ALREADY EXPIRED? 12:50:30 >> BECAUSE I SEE A MINUS FOUR MINUTES AND 20 SECONDS. 12:50:36 >> NO, GO AHEAD. >> I WANT TO GO TO MR. GILBERT. 12:50:41 THE MINORITY STAFF HAS NOT HAD AN OPPORTUNITY TO INTERVIEW YOU. 12:50:45 WE ONLY FOUND OUT YOU WERE GOING TO TESTIFY LATE YESTERDAY 12:50:47 AFTERNOON, BUT IT APPEARS JUST LOOKING AT YOUR BIOGRAPHY THAT 12:50:55 YOU'RE VERY CREDIBLE AND RESPECTED IN THE INDUSTRY. 12:50:57 IF I UNDERSTAND WHAT YOU SAID, YOU DECIDED ON YOUR OWN TO LOOK 12:51:00 INTO THIS, OR DID TOYOTA APPROACH YOU AND ASK YOU TO LOOK 12:51:02 INTO THIS? >> I DID THIS ON MY OWN. 12:51:04 >> YOU DID THIS ON YOUR OWN? >> YES, SIR. 12:51:07 >> AND YOU ACTUALLY WENT OUT AND BOUGHT A CAR OR YOU GOT ACCESS 12:51:10 TO A CAR? >> I SHOULD EXPLAIN A LITTLE 12:51:14 BIT. TOYOTA MOTOR COMPANY HAS BEEN 12:51:16 VERY GENEROUS WITH VEHICLE DONATIONS. 12:51:18 WE HAD A NUMBER OF TOYOTA VEHICLES IN THE FLEET THAT -- 12:51:21 AND THEY'RE LISTED IN THE REPORT -- THAT WERE DONATED FOR 12:51:26 EDUCATIONAL PURPOSES. AND THOSE WERE AT MY DISPOSAL. 12:51:29 SO ONE OF THE FIRST VEHICLES THAT I LOOKED AT WAS A 2007 12:51:33 TOYOTA TUNDRA, WHICH IS SIMILAR TO THE VEHICLE I PURCHASED. 12:51:37 AND THAT WAS PART OF MY INTEREST. 12:51:39 >> YOU GOT ACCESS TO SOME OF TOYOTAS. 12:51:42 >> ABSOLUTELY. >> NOW, FROM WHAT LITTLE 12:51:45 MINORITY STAFF AND MYSELF HAVE BEEN ABLE TO EVALUATE YOUR 12:51:51 TESTIMONY, YOU'RE SAYING THAT THERE IS -- THERE COULD BE SOME 12:51:57 SORT OF A ELECTRONIC, PHYSICAL FAULT IN THE ELECTRONIC SYSTEM, 12:52:06 A PHYSICAL IMPAIRMENT THAT WOULD CAUSE AN ELECTRIC CIRCUIT 12:52:13 MALFUNCTION? IS THAT -- ARE YOU SAYING THERE 12:52:15 IS A PHYSICAL DEFECT, AN ACTUAL IMPAIRMENT IN TERMS OF A CUT OR 12:52:22 A -- SOME SORT OF A FRICTION POINT THAT GETS THIN AND THERE 12:52:30 IS A SHORT THAT OCCURS BECAUSE OF THAT? 12:52:32 >> FIRST OF ALL, YOU HAVE TO UNDERSTAND A LITTLE BIT ABOUT 12:52:39 THE FAIL-SAFE STRATEGIES THAT THEY HAVE IN PLACE FOR ALL 12:52:43 ACCELERATOR PEDAL POSITION SENSORS THAT VEHICLE 12:52:48 MANUFACTURERS PUT ON IT. TYPICALLY THEY TRY TO RUN 12:52:52 CIRCUITRY THAT IS REDUNDANT. IN OTHER WORDS -- AND IF YOU 12:52:54 LOOK IN THE PRELIMINARY REPORT, YOU CAN SEE AN EXAMPLE OF THIS. 12:52:59 THEY RUN A SEPARATE -- THEY ACTUALLY HAVE TWO SIGNAL 12:53:05 CIRCUITS WITHIN THE PEDAL POSITION SENSOR ITSELF. 12:53:07 THEY HAVE -- EACH HAS THEIR OWN POWER SUPPLY, EACH HAS THEIR OWN 12:53:12 GROUND CIRCUIT AND EACH HAS THEIR OWN SIGNAL CIRCUIT BACK. 12:53:20 THE REASON FOR THAT IS SO THAT ONE HAS THEIR OWN INTEGRITY AND 12:53:24 CAN WORK WITH THE OTHER. DO YOU UNDERSTAND THAT? 12:53:26 >> I TOOK ENGINEERING. I MADE C'S, BUT I DID TAKE IT. 12:53:31 >> GREAT. IT'S LIKE HAVING A WITNESS. 12:53:34 ONE SIGNAL IS A WITNESS FOR THE OTHER TO MAKE SURE THAT BOTH ARE 12:53:39 EXACTLY ON TRACK SO THAT WHATEVER IS BEING SENT TO THE 12:53:45 VEHICLE'S ON-BOARD COMPUTER, IT'S EXACTLY CORRECT. 12:53:48 WITH THAT SAID, IF FOR SOME REASON THAT CIRCUIT BECOMES 12:53:53 COMPROMISED, SHORTED POWER, SHORTED GROUND OR SHORTED SIGNAL 12:53:56 TO SIGNAL, THEN AT THAT POINT, YOU SHOULD BE ABLE, WITHIN THE 12:54:01 VEHICLE'S COMPUTER, TO DETECT THAT CIRCUIT ABNORMALITY AND SET 12:54:06 A DTC. OKAY? 12:54:08 THAT WOULD ALLOW THE VEHICLE TO TURN ON AMAL OR MALFUNCTION 12:54:15 INDICATOR LAMP, WARN THE DRIVER -- 12:54:17 >> IF THERE SHOULD BE SOMETHING NON-TECHNICAL, IF SOMETHING 12:54:21 SHOULD GO ON WITHIN THE CIRCUITRY, THERE SHOULD BE A 12:54:26 DEFAULT PROGRAM THAT STOPS THE ENGINE AND APPLIES THE BRAKE. 12:54:29 THAT'S WHAT THE TOYOTA INDUSTRY TOLD ME, IF SOMETHING GOES 12:54:34 WRONG, WE GIVE THE BRAKE CIRCUIT POWER OVER THE ACCELERATOR 12:54:37 CIRCUIT SO IT STOPS THE CAR. THAT DIDN'T HAPPEN IN MR. AND 12:54:40 MRS. SMITH'S CASE. >> THAT ISN'T TRUE WITH ALL 12:54:43 TOYOTA VEHICLES AT THIS POINT. THEY'RE IN PROCESS OF 12:54:49 REPROGRAMMING THEIR VEHICLE ON-BOARD COMPUTERS TO INTRODUCE 12:54:52 THIS FAIL-SAFE CHARACTERISTIC. IT'S IMPORTANT TO NOTE THAT THE 12:54:56 FAIL-SAFE IS GOING TO BE LOOKING AT TWO DRIVER INPUTS INSTEAD OF 12:54:59 JUST ONE FROM THE ACCELERATOR PEDAL. 12:55:06 LOGICALLY, WHY WOULD YOU BE DRIVING DOWN THE ROAD AT 60, 65 12:55:11 MILES AN HOUR OR EVEN FASTER, WITH YOUR FOOT ON THE BRAKE AND 12:55:16 ON THE ACCELERATOR PEDAL AT THE SAME TIME? 12:55:19 >> LOGICALLY, YOU SHOULD NOT. >> LOGICALLY NOT. 12:55:22 BUT IF SOMETHING WERE TO FAIL -- I'M LOOKING AT THIS FOR PEOPLE 12:55:27 DRIVING. IF SOMETHING HAPPENS LIKE THAT 12:55:29 AND YOUR VEHICLE STARTS TO ACCELERATE ON ITS OWN, YOUR 12:55:33 FIRST INTUITION IS TO STEP ON THE BRAKE. 12:55:35 AT THAT POINT, IF WE HAVE AN INCORRECT SIGNAL GOING INTO THE 12:55:38 VEHICLE'S ON-BOARD COMPUTER, PLUS THE APPLICATION OF THE 12:55:41 BRAKE, THE PCM WOULD SAY, HEY, WE'VE GOT A PROBLEM, SHUT HER 12:55:46 DOWN. >> AND THAT DIDN'T HAPPEN IN 12:55:50 THEIR CASE. MY TIME IS ABOUT EXPIRED. 12:55:52 LAST QUESTION, AND HOPEFULLY WE CAN REALLY GET INTO THIS LATER 12:55:55 IN DETAIL. TO DO THE TESTS THAT YOU DID, 12:55:58 DID YOU PHYSICALLY IMPAIR THE ELECTRONICS OF THE CARS YOU 12:56:02 TESTED IN ANY WAY? >> AS FAR AS CHANGING THEIR 12:56:10 DRIVING CHARACTERISTICS, NO. >> I'M TALKING ABOUT TO CREATE 12:56:16 THESE FAULTS OR SHORTS, DID YOU CUT ANYTHING -- 12:56:18 >> NO, SIR. THE ONLY THING THAT WE DID IS WE 12:56:22 TAPPED INTO THE ACCELERATOR PEDAL POSITION SENSOR CIRCUITS 12:56:25 SO THAT WE COULD MONITOR VOLTAGES AND MODIFY THOSE 12:56:29 CIRCUITS IN SUCH A WAY THAT WE COULD MANIPULATE, IF YOU WOULD, 12:56:34 THE SIGNALS GOING TO THE ON-BOARD COMPUTER. 12:56:36 >> BUT IN LAYMAN'S TERMS, YOUR HYPOTHESIS IS IT'S POSSIBLE 12:56:41 THERE COULD BE A COMPUTER MALFUNCTION, AND IT'S POSSIBLE 12:56:44 IF THEY DON'T HAVE THIS DEFAULT MECHANISM THAT OVERRIDES IT, IN 12:56:49 THE ABSENCE OF THE COMPUTER NOT KNOWING WHAT TO DO, IT JUST 12:56:53 DOESN'T DO ANYTHING AND THE RENEGADE SIGNAL RUNS AWAY? 12:56:56 >> IT TAKES THE COMMAND AS ONE THAT'S VALID, AND AS A RESULT OF 12:57:01 THAT, IT OPENS THE THROTTLE. >> THANK YOU, MR. CHAIRMAN. 12:57:04 >> THANK YOU, MR. BARTON. MS. SMITH, LET ME ASK YOU THIS 12:57:09 QUESTION, IF I MAY. WHEN YOU WERE DRIVING DOWN THE 12:57:11 HIGHWAY AND YOUR VEHICLE WAS A RUNAWAY VEHICLE, YOU SAID YOU 12:57:13 PUT YOUR VEHICLE IN REVERSE? >> YES. 12:57:17 >> WHAT HAPPENED WHEN IT WENT IN REVERSE? 12:57:20 >> NOTHING. >> MR. SMITH, WAS THE 12:57:23 TRANSMISSION RIPPED UP OR ANYTHING WHEN YOU GOT THE 12:57:25 VEHICLE? I MEAN, IF YOU'RE GOING CLOSE TO 12:57:28 100 MILES AN HOUR AND THROW YOUR VEHICLE IN REVERSE, YOU'RE GOING 12:57:30 TO BE DROPPING YOUR TRANSMISSION. 12:57:32 >> MY SUGGESTION TO HER WAS PUT IT IN REVERSE, HOLD ON AND 12:57:36 HOPEFULLY THE TRANSMISSION WILL YANK LOOSE AND YOU'LL SURVIVE 12:57:42 THE CRASH. NO, SIR, THE TRANSMISSION DIDN'T 12:57:44 YANK LOOSE. >> LET ME ASK YOU THIS, THEN. 12:57:46 YOU ALSO STATE IN YOUR TESTIMONY THAT THE WRECKER DRIVER PUT IT 12:57:55 IN NEUTRAL? >> YES, SIR. 12:57:57 >> AND THE VEHICLE STARTED UP? >> YES. 12:57:59 >> SHOULD IT START, AS A GENERAL RULE, IN NEUTRAL? 12:58:03 >> ABSOLUTELY WILL NOT. >> MRS. SMITH, IN YOUR Y 12:58:12 TESTIMONY, YOU HAVE ATTACHED THE DOCUMENTS PROVIDED BY THE 12:58:15 COMMITTEE IN EXHIBIT B WHICH YOU RECEIVED A RESPONSE FROM TOYOTA; 12:58:19 IS THAT CORRECT? >> THE RESPONSE FROM TOYOTA 12:58:22 ABOUT THE -- >> YES, DATED DECEMBER 4, 2006. 12:58:26 IT WAS FROM TOYOTA SENT TO YOU AND YOUR HUSBAND ON YOUR 12:58:30 COMPLAINT. IS THAT CORRECT? 12:58:33 >> YES. >> AND IN THERE, DO THEY SAY, IF 12:58:37 PROPERLY MAINTAINED, THE BRAKES WILL ALWAYS OVERRIDE THE 12:58:41 A ACCELERATION? 12:58:44 >> THAT'S WHAT IT SAYS. >> AND IN THIS CASE, THEY TALKED 12:58:47 ABOUT YOUR INCIDENT, TWO TOTALLY DIFFERENT SYSTEMS WOULD HAVE TO 12:58:52 FAIL AT EXACTLY THE SAME TIME, THE THROTTLE LINKAGE AND THE 12:58:57 BRAKES, AND IF PROPERLY MAINTAINED, THE BRAKES WOULD 12:59:00 ALWAYS OVERRIDE THE ACCELERATION. 12:59:02 IS THAT WHAT THEY TOLD YOU? >> THAT'S THE LETTER I GO

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