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Shinichi Sasaki, Toyota Executive Vice President in charge of Quality, the chief Quality officer at Toyota, explained at a press conference that Toyota has a good handle on individual components quality but not enough on the quality of components as they interact in environmental conditions inside the car. Moisture could collect on gas pedals inside the car in certain environmental conditions and cause the car pedal to get depressed and stick. There is a lack of research he said on how how accelerator pedal systems were affected by certain climate conditions and how moisture could collect inside the pedals and cause overacceleration. This caused one of the 2 recalls made by Toyota recently. Total recalls worldwide for faulty pedals and floor mats is now around 8.1 millon units. Mr Sasaki said that Toyota's research has shown that the gas pedal's electronics were not at fault. The fix Toyota has come up with is to ship a part , a shim, a small piece of metal which when inserted into the gas pedal assembly will prevent it from being stuck in a depressed position. Sasaki fears a global hit to Toyota sales especially in the U.S. market....

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Ford CFO Lewis Booth says that Ford is serious about the $34.3 billion in debt on its balance sheet and is working on that, even as the situation improves. Ford is restoring profit sharing for workers- about $450 for hourly workers. Ford reported $2.7 billion profits in 2009 and is set to do so again in 2010, after $30 billion in losses from 2005 to 2008.

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According to the China Association of Automobile Manufacturers 99.7% of cars made through November 2009 were sold. According to Trade Minister Chen Deming demand in the rural areas now exceeds that in the urban regions. And demand is also growing in smaller and mid sized cities compared to Beijing and Shanghai. Demand surged 46% to 13.6 million vehicles in 2009 according to the Association. For example 55-60% of Nissan sales come from middle and small sized cities according to a Nissan dealer. Nissan with 2009 sales at 756,000 is now the largest Japanese auto manufacturer in China. Government new bank lending and $732 million in subsidies, sales tax cut, all helped auto sales. But Chen Bin who oversees regulation of the auto industry at the National Development and Reform Commisson says automakers face possible overcapacity in China.

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According to an ABC News poll Toyota's recalls for faulty gas pedals has resulted in a 15 point drop in favorable opinions of Toyota. Now only 63% of Americans polled still rate Toyota favorably overall. 21% think the issue reflects broader problems with quality and 22% say it makes them less likely to buy a Toyota vehicle. In a PEW poll in 2007 Toyota had a 78% favorable rating. This is reflected in the surge of Ford sales by 24% in January and in GM sales up by 14% in January 2010 over January 2009.