By Mariko Katsumura and John Crawley
TOKYO/WASHINGTON (Reuters) - The head of Toyota Motor Corp bowed to pressure to testify before U.S. lawmakers and explain the company's safety crisis, becoming the highest profile Japanese executive to face such a grilling from Congress.
Akio Toyoda, the grandson of Toyota's founder, said on Friday he intends to provide a "sincere explanation" of the problems that led to the recall of millions of vehicles when he testifies next Wednesday before a congressional panel.
His decision ends days of uncertainty about how the embattled automaker would respond to calls for a better response to its safety issues. Toyoda originally said he had no intention to appear before Congress himself, drawing criticism from both industry analysts and Japanese politicians.
"Toyota gave the impression that it was not serious enough about the issue or taking the U.S. market too lightly when it said Mr. Toyoda had no imminent plans to travel to the United States," said Tsutomu Yamada, a market analyst at kabu.com Securities.
The U.S. House Oversight and Government Reform Committee invited Toyoda on Thursday, a month into a safety crisis that has tarnished its reputation, hurt sales and sapped profits.
"It's good that he has decided to accept (the invitation)," Seiji Maehara, Japan's transport minister, said on Friday.
"But it's a shame there was flip-flopping on the decision."
Toyoda had originally said he would send the company's North American chief to testify but later changed his plans
"I look forward to speaking directly with Congress and the American people," the head of Japan's largest company and the world's No.1 automaker said in statement.
The last senior Japanese executive to give testimony before the U.S. Congress was from tire maker Bridgestone in 2000 following a series of crashes linked to the handling of some Ford Motor Co SUVs, according to media reports.
Toyoda said the firm is investigating the causes of the unintended acceleration and braking, which have led to a recall of about 8.5 million cars worldwide.
Shares of Toyota closed down 1.8 percent in Tokyo on Friday. The stock has fallen about 20 percent since January 21, wiping out more than $25 billion in market capitalization.
BIG PICTURE
Analysts and public relations experts stressed the need for Toyoda to speak clearly, and honestly, in his testimony. By appearing to dodge questions, he could further stain Toyota's reputation, they said.
"Rather than getting bogged down with the details, I think (Toyoda) should use this as a chance to communicate Toyota's corporate philosophy," said Yasuhiro Matsumoto, a senior analyst at Shinsei Securities in Tokyo.
"What's missing from Toyota right now is the big picture."
Executives giving such testimony should also expect difficult questions, experts said.
"The important thing is that they actually answer all questions and don't dodge or run away," said Shoichi Yoshikawa, the president and chief executive of public relations firm Hill & Knowlton Japan.
A company source said it not yet been decided whether Toyoda would speak in Japanese or English, but the company has already contacted some translation companies.
Toyoda, who has a degree from Babson College in the United States, has at times appeared uneasy with the heightened scrutiny and sometimes struggled when giving comments in English.
"I would recommend that he speaks in Japanese to avoid misunderstanding. If he speaks in English, he needs to prepare his statements very well," said Shinichi Tanaka, the president of public relations firm Fleishman-Hillard Japan.
Toyota has recalled more than 6 million vehicles in the U.S. market for problems involving the accelerator pedal becoming stuck, either by a loose floor mat or because of a glitch in the pedal assembly.
Up to 34 crash deaths have been blamed on unintended acceleration in Toyota vehicles since 2000, according to complaints tracked by U.S. regulators.
A separate recall is under way to fix software controlling the brakes on Toyota's Prius hybrid, while U.S. safety regulators have also begun a preliminary investigation into complaints about steering problems in late model Corollas.
The House oversight panel said it had also issued a subpoena for internal documents Toyota had fought to keep sealed in a legal battle with a former employee who says the automaker routinely hid evidence of safety problems.
CONGRESS PLEASED
Representative Edolphus Towns, chairman of the oversight panel and Representative Darrell Issa, ranking Republican, said they were pleased Toyoda had agreed to answer questions.
"We believe his testimony will be helpful in understanding the actions Toyota is taking to ensure the safety of American drivers," they said in a joint statement.
The House oversight hearing on Wednesday is one of two congressional inquiries set for next week into the Toyota safety crisis. On Tuesday, the U.S. House Energy and Commerce Committee will hold its own hearing.
Toyota's safety woes are deepening at a time when automakers worldwide are struggling to emerge from a deep decline in sales -- led by a collapse in the U.S. market -- that prompted bankruptcies and consolidation.
Toyota's U.S. sales dropped 16 percent in January and are expected to take a big hit in February as well.
(Additional reporting by Steve Gorman in Los Angeles, Helen Massy-Beresford in Paris; Writing by Kevin Krolicki and David Dolan; Editing by Lincoln Feast)