Toyota chief apologizes for massive vehicle recall

TOKYO - Toyota's president has apologized for the recall of millions of cars around the world due to faulty accelerator pedals, in a setback that has tarnished the Japanese giant's reputation for quality.

"We're extremely sorry to have made customers feel uneasy," Akio Toyoda told public broadcaster NHK on the sidelines of the Davos forum in Switzerland, in his first public remarks on the recall since it went global this week.

Toyota was trying to establish the facts behind the problem and give customers an explanation to ease their anxiety, he said.

Toyota pulled up to 1.8 million vehicles in Europe on Friday -- the latest in a series of recalls that have affected almost eight million Toyota cars worldwide -- more than its entire 2009 global sales of 7.8 million vehicles.

Toyota, which overtook General Motors in 2008 as the top-selling automaker, has been bedeviled by a series of safety issues that have raised questions about whether it sacrificed its legendary quality to become world number one.

Toyota's woes went into overdrive last week when it announced a recall of 2.3 million automobiles in the United States due to the accelerator pedal fears.

It is also recalling almost 5.3 million US vehicles to replace floor mats that could trap accelerator pedals.

At least 1.7 million of the cars already recalled outside Europe potentially suffer from both problems, according to Toyota.

In another hit to Japanese makers' reputation for safety, Honda recalled 646,000 of its cars worldwide Friday due to a potential fire risk linked to a window switch problem that is reported to have killed a child in South Africa.

The move affects Fit/Jazz cars made between 2002 and 2008 in Japan, China, Brazil, Thailand, Malaysia and India, Honda said.

Toyota for its part said Thursday that parts supplier CTS had begun making pedals based on a new design that resolved the problem and the two firms were testing a remedy.

Engineers were believed to be putting the finishing touches to a repair whereby it would insert a "spacer" in the pedal mechanism in order to increase the tension in a spring and reduce the risk of sticking.

Toyoda, the Toyota family scion named a year ago to steer the Japanese automaker through the global economic downturn, faces perhaps his biggest challenge yet handling a widening safety recall.

The Toyota president had kept a low profile during the week as the company founded by his grandfather more than 70 years ago battled to contain the fallout from the accelerator pedal problems.

How Toyoda -- an avid motor racing fan -- handles the quality problems is seen as key to his legacy and the future of the company, long lauded for its vehicles' safety and reliability.

The only statements posted on the company's global website this week relate the group's sales plan for next year and a tree-planting project in the Philippines.

Toyoda -- at 53 years old relatively young for a top Japanese executive -- was long groomed for the top job and became the first member of the founding family in 14 years to take the reins.

The family scion has put the brakes on Toyota's rapid expansion, which left it vulnerable to the global economic crisis.

Toyota's shares suffered another drop on Friday, closing down 1.96% at 3,490 yen -- having plunged about 14% during the week.

A key US House of Representatives panel said on Thursday that it would hold a hearing on the accelerator issues on February 25.

Quiet please! Noise irks Japan's commuters the most

TOKYO - Taking the train in Japan and want to avoid annoying fellow passengers? Keep conversation to a whisper, turn down your iPod and put your cellphone on vibration mode, a recent survey by the railway association showed.

Many foreigners who ride on Japan's vast network of subways and commuter trains complain about the pushing and shoving that accompanies getting into the train and the reluctance to give up seats for senior citizens and pregnant women.

But for Japanese commuters, noise is the biggest issue, with loud conversation and music from headphones the top two offenders and cellphone ringtones in fourth place, the survey by the Association of Japanese Private Railways showed.

Applying make-up ranked as the sixth-biggest breach of rail etiquette, worse than being drunken, which at number 9 just edged out bringing strollers onto crowded trains.

Here are the top 10 examples of bad rail manners according to the association's online survey, with responses from about 4,200 people:

1. Noisy conversation, horsing around

2. Music from headphones

3. The way passengers sit

4. Cellphone ringtones and talking on phones

5. Pushing, shoving when getting on and off trains

6. Applying make-up

7. Littering

8. Sitting on the floor of the train

9. Riding the train drunk

10. Riding a crowded train with a child in a stroller

Toyota to recall 43,000 cars in China

TOKYO - Japan's Toyota Motor Corp. is recalling about 43,000 cars in China due to a defect that may cause engine oil to leak, a company spokesman said Friday.

The recall affects four models, the Lexus ES 350, the Lexus RX 350, the Highlander sports utility vehicle and the Previa minivan, said the spokesman, Yuta Kaga.

It comes just months after Toyota announced its biggest ever recall in China, affecting about 688,000 vehicles, due to a defect in the electric window system.

Toyota's reputation for quality has been dented recently by a series of recalls or safety issues, including a fatal accident in California involving an accelerator pedal that jammed under the floor mat.

Dollar stable in Asia after Bernanke remark

TOKYO - The dollar was steady in Asia Tuesday after getting a brief boost from a rare comment on currencies by US Federal Reserve chief Ben Bernanke, who voiced support for a strong dollar.

The dollar was at 89.04 yen in Tokyo midday trade, against 89.05 in New York late Monday. The euro slipped to 1.4966 dollars from 1.4972 and to 133.25 yen after 133.32.

Bernanke's remark in a speech Thursday caused the dollar to shoot up against the euro, but the rally soon fizzled out as traders bet that the low level of US interest rates would continue to pressure the greenback.

The dollar lost ground against the yen Monday as dealers bet that the Fed is unlikely to raise its key interest rate any time soon from the current level of close to zero. Investors generally prefer currencies offering high yields.

"This bout of selling pressure on the dollar appears to be easing following Bernanke's remarks, which signalled US interest rates will stay low for the time being," said Yosuke Hosokawa, head of forex group of Chuo Mitsui Trust.

"But the dollar is likely to face another bout of selling," Hosokawa said.

Bernanke said the central bank was closely monitoring exchange rates with the dollar having lost its gains from safe haven flows during the height of the financial crisis.

"We are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability," the Federal Reserve chief told the Economic Club of New York.

"Our commitment to our dual objectives, together with the underlying strengths of the US economy, will help ensure that the dollar is strong and a source of global financial stability."

But "the reality is that the Fed is probably quite comfortable with a weak dollar given the positive impact on the economy and lack of associated inflation pressures," said Calyon analyst Mitul Kotecha.