agent Entrepreneur logo
MenuMENU
SearchSEARCH

Toyota Acknowledges U.S.-Japan Disconnect

March 1, 2010
2 min to read


Toyota Motor Corp. has spent 20 years telling U.S. consumers how deeply it has sunk its roots into America. But in congressional testimony last week, Toyota executives acknowledged that the home office in Japan continues to call the shots in its biggest market, Automotive News reported. The disconnect between Toyota U.S.A. and Toyota Japan, as well as Toyota manufacturing and Toyota sales in the United States, partly accounts for the giant's current blizzard of problems, recalls, lawsuits and public scoldings, according to comments made during hours of congressional testimony last week. Even as Toyota's U.S. manufacturing group is running print ads in Kentucky, Ohio and Indiana boasting that it is "dedicated to our community," corporate executives faced questions in Washington on how U.S. consumer concerns got lost in Japan. Jim Lentz, president of Toyota Motor Sales U.S.A. Inc. and Toyota's highest-ranking U.S. sales executive, admitted under Capitol Hill questioning last week that decisions about whether to recall U.S. products for safety issues are all made in Japan. Asked if any of Toyota's safety personnel report to him, Lentz said they do not. And he admitted that the centralized control of product issues in Japan had made it difficult for U.S. voices to be heard. "We did not do a good job of sharing information around the globe," Lentz testified, attempting to explain why Toyota responded slowly to three years of U.S. consumer reports of unintended acceleration in some of its models. "Most of the flow was one-way." Lentz said U.S. customers' complaints about safety issues -- as well as complaints made even earlier by Toyota customers in the United Kingdom -- went directly to engineering departments in Japan. He said Toyota's growth in North America had outstripped its ability to employ U.S. engineering personnel to support it. "The complexity of our product line grew," he testified. "We outgrew our engineering resources. We had strategies to deal with that, but the strategies didn't work." The acknowledgements stand in contrast to Toyota's marketing efforts to portray itself as an automaker with an American identity.

More Industry

Photo of two men in suit jackets shaking hands next to new car inside of a dealership
IndustryApril 23, 2026

A New Consumer Culture in the Auto Dealership

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.

Read More →
Closeup of the side of an Audi car
Industryby Hannah MitchellApril 23, 2026

New-Vehicle Sales Down

A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.

Read More →
Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Ad Loading...
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Ad Loading...
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →