Toyota Motor Corp. is pressurized as the Congress accuses it of misleading the public about safety problems. The House Energy and Commerce Committee, previewed issues in a letter, its members would raise at a hearing on Tuesday. The letter criticized Toyota for defying the prospect that electronic defects could be responsible for the reports of unplanned acceleration.
Toyota assures to install brake-override systems on three of the models of its vehicles already on U. S. roads; the Tacoma truck going back to 2005 model year, the Venza crossover from 2009 and the Sequoia SUV.
Shares of Toyota cut down 0.5% to 3,325 yen on Tuesday.
"Investors are not worried about such one-time costs. Instead they welcome Toyota's efforts to restore confidence in its products and its relations with the U. S. government regardless of the costs", said Yoshihiko Tabei, analyst at Kazaka Securities.
A Japanese Government official said that Toyota's problems can affect Japan's exports.
"Strong growth in Asia-bound exports seems to be slowing, and we also have to consider Toyota's recalls, so we've given a cautious judgment on exports", said Keisuke Tsumura, a parliamentary secretary on economic affairs.
Toyota is rushing to discontinue a downward spiral in its sales and reputation.
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