Source: Automotive News

Toyota Motor Corp., moving quickly to squelch the bad publicity over charges of sexual harassment against its top executive in America, on Monday replaced that executive.

Jim Press, 59, president of Toyota Motor Sales U.S.A. Inc., will leave the sales company to become president of Toyota Motor North America in New York. Respected as one of the brightest minds in the automotive business, Press will oversee the holding company for the corporation in America.

Also, Yuki Funo, 59, chairman and CEO of Toyota Motor Sales in Torrance, Calif., will add the titles of chairman and CEO of Toyota Motor North America. The changes take effect immediately, Toyota said.

They will replace Hideaki Otaka, who has resigned as president and CEO of Toyota Motor North America.

Otaka, 65, was subject of allegations that over several months last year he twice groped and sexually harassed his executive assistant, Sayaka Kobayashi, 42. On Monday, May 1, Kobayashi sued Otaka and Toyota in New York Supreme Court, seeking $190 million. The lawsuit got widespread publicity.

Toyota Motor North America handles investor relations and government affairs for the automaker. It also coordinates messages on those areas from Toyota's sales and manufacturing operations in North America and the parent company in Japan. But it is not an operating company. Toyota's North American sales and manufacturing report directly to Japan.

At Toyota Motor Sales, Toyota Division General Manager Jim Lentz, 50, will become executive vice president and take over Press' operational duties. But Press' post of Toyota Motor Sales president will not be filled immediately, the automaker said.

Task force formed

In addition:


Former Secretary of Labor Alexis Herman will head a seven-person task force to review Toyota's sexual harassment policies and procedures. Herman is chairman of the automaker's Diversity Advisory Board. In addition to Herman, four other members of the task force are women.


All Toyota executives in the United States will be given special training "to enable them to better recognize, prevent and handle any instances of inappropriate behavior," the automaker said in a statement.


A policy change will now require that any charges of harassment or misconduct against a chairman, CEO or president of a Toyota affiliate be reported directly to the unit's board of directors.


The policy change is significant.

In her lawsuit, Kobayashi says she reported her allegations first to Ko Takatsu, Toyota Motor North America's vice president of human relations. But she says the company did not investigate.

Then in early December, Kobayashi says she took her complaints to Senior Vice President Dennis Cuneo, the second-highest executive in Toyota's New York office. Otaka was Cuneo's boss.

Kobayashi says Cuneo arranged a private meeting between her and Otaka. But instead of an apology, Otaka criticized and humiliated her.

Toyota's announcement of the executive changes makes no mention of Cuneo.

Toyota spokesman Irv Miller said, "From what I can tell, Dennis will continue to perform his job functions at TMNA. Other than that, I cannot comment."

In Toyota's announcement, Otaka said he expects "to be fully vindicated" in the lawsuit.

"I have regretfully come to the conclusion that my continued service as president would serve as a distraction and ultimately not be in the best interests of the company," Otaka said in a statement.

Otaka has withdrawn from being considered for a job as in-house auditor at Toyota affiliate Daihatsu Motor Co. in Japan. He will be a Toyota retiree, and won't pursue another job within Toyota until the legal case against him concludes, a company spokesman said.

Lentz on fast track

The personnel move is a major boost for fast-tracker Lentz, Toyota group vice president and Toyota Division's general manager.

While Lentz keeps the responsibility over Toyota Division, he also assumes all the operational oversight that Press previously held. His new corporate title will be executive vice president, instead of the president's title that Press held.

With this move, Lentz has vaulted past numerous other Toyota veterans in the executive hierarchy, an impressive move considering Lentz was working in the shadows just a few years ago.

Although he joined Toyota in 1982, Lentz first came to the public eye when he led the launch of the Scion youth brand in 2002, a position he surrendered to become vice president of Toyota Division marketing later that year. Lentz, 50, was promoted to his current job in March 2005.