Toyota taps former U.S. Attorney Kelley as safety monitor

Bloomberg News report

TOKYO (Aug. 13, 2014) — Former U.S. Attorney David Kelley has been appointed as the government monitor who will supervise Toyota Motor Corp.'s safety after the company's mishandling of vehicle recalls for unintended acceleration.

Toyota spokesman Keisuke Kirimoto confirmed the U.S. Justice Department's appointment of Mr. Kelley. The car maker expects to have “a cooperative and constructive working relationship with Mr. Kelley,” he said.

A New York-based partner at Cahill Gordon & Reindel L.L.P., Mr. Kelley will review Toyota's policies, safety procedures and verify the accuracy of its public statements. The monitor position is part of a settlement in March, whereby Toyota paid a record $1.2 billion penalty and admitted it misled U.S. consumers in 2009 and 2010 about problems with its cars over unintended acceleration.

The appointment comes as the U.S. Justice Department and Congress investigate General Motors Co. for its handling of

defective ignition switches linked to at least 13 deaths. GM has called back about 29 million vehicles in North America this year—a record.

For Toyota, the recalls blemished its reputation for quality and led to the company losing its title as the world's top-selling auto maker to GM. Toyota regained the industry lead in each of the last two years and clung to a slim lead over Volkswagen A.G. through the first half of 2014.

Mr. Kelley was the U.S. attorney for the Southern District of New York from 2003 to 2005. Prior to that appointment, he was co-chairman of the Justice Department's investigation into the Sept. 11, 2001, terror attacks.

This Bloomberg News report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.