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Tuesday, February 9, 2010

Toyota is running apologetic TV ads and vowing to win back customers'

WASHINGTON – In public, Toyota is running apologetic TV ads and vowing to win back customers' trust. Behind the scenes, the besieged carmaker is trying to learn all it can about congressional investigations, maybe even steer them if it can.
It's part of an all-out drive by the world's biggest auto manufacturer to redeem its once unassailable brand — hit anew on Tuesday as Toyota's global recall ballooned to 8.5 million cars and trucks. The day's safety recall of 440,000 of its flagship Prius and other hybrids, plus a Tokyo news conference where the company's president read a statement in English pledging to "regain the confidence of our customers," underscored a determination to keep buyers' faith from sinking to unrecoverable depths.
In Washington, facing congressional inquiries and government investigations, Toyota through its lawyers and lobbyists is working full-speed to salvage its reputation. The confidential strategy — Toyota will say little publicly about its efforts — includes efforts to sway upcoming hearings on Capitol Hill and is based on experiences by companies that have survived similar consumer and political crises — and those that haven't.
Rep. Bart Stupak, D-Mich, said Toyota representatives visited his offices seeking to learn all they could.
"They're probing us. 'What are you going to ask us, where are you going with this whole thing?'" said Stupak, who is chairman of a House subcommittee looking into Toyota's problems.
Toyota, which reported spending more than $4 million on lobbying last year, declined to discuss details of its plans. The company has "beefed up our team" by hiring additional lobbyists, lawyers and public relations experts to "work with regulators and lawmakers collaboratively towards a successful recall effort, ensuring proper, diligent compliance," spokeswoman Cindy Knight said in an e-mail to The Associated Press.
Rough headlines for Toyota continued Tuesday. In other developments:
_State Farm, the largest U.S. auto insurer, said it had informed federal regulators late in 2007 about growing reports of unexpected acceleration in Toyotas. That disclosure raised new questions about whether the government missed clues about problems. Reps. Henry Waxman, D-Calif., and Stupak wrote insurance executives on Tuesday seeking information on any warnings they may have provided the government about unintended acceleration in Toyotas.
_Congressional investigators cited growing evidence that not all the causes of Toyota's acceleration problems have been identified. A staff memo from the House Oversight and Government Reform Committee, which had planned an oversight hearing for Wednesday, said there was substantial evidence that remedies such as redesigned floor mats have failed to solve problems. The hearing was postponed until Feb. 24 due to snow in Washington.

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