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The Asahi Shimbun

NEW YORK--Hideaki Otaka, president and chief executive officer of Toyota Motor Corp.'s North American unit, stepped down following a sexual harassment lawsuit filed by his former *** the company said Monday.

Otaka also declined auditor posts at Toyota subsidiaries Daihatsu Motor Co. and Kanto Auto Works Ltd. that he had been scheduled to take in late June, according to Toyota Motor North America Inc.

Otaka said in a statement he decided to step down to prevent damage to the company. He also said he expects to clear himself of the sexual harassment allegations in court.

The 42-year-old woman filed the lawsuit with the New York State Supreme Court last week seeking $190 million (about 21 billion yen) in compensation from Otaka and Toyota. She said she was the target of Otaka's unwanted sexual advances.

Yukitoshi Funo, chairman of Toyota Motor Sales U.S.A. Inc. and senior managing director of Toyota, has become CEO and chairman of Toyota Motor North America. Jim Press, president of Toyota Motor Sales, has been appointed president of Toyota Motor North America.

The two will hold their new and current posts concurrently for the time being.

Toyota's North American operation also announced the formation of a special task force headed by former U.S. Labor Secretary Alexis Herman and comprising former judges, former politicians and others.

The task force will help Toyota Motor North America comprehensively review its policies and in-house procedures on harassment and discrimination problems.(IHT/Asahi: May 9,2006)