WRAPUP 1-US gov't was told of Toyota claims in 2004-insurer

(For more on Toyota's safety recalls, click [ID:nN27231388])

* State Farm says alerted US earlier than first thought

* US Transport Sec. LaHood says will not relax pressure

* Akio Toyoda promises "sincere explanation" of problems

* California crash victim relative may testify

* Analyst: Toyota appeared to take U.S. market lightly

By David Bailey and Steve Gorman

DETROIT/LOS ANGELES, Feb 19 (Reuters) - The largest U.S.
auto insurer alerted regulators earlier than first believed
about a worrying trend of accidents involving Toyota Motor Corp
(7203.T) (TM.N) vehicles, while the Obama administration's top
transportation official said on Friday he would not relax
pressure on the carmaker.

Both developments came as Toyota's president, Akio Toyoda,
readied to fly to Washington in an extraordinary appearance to
answer questions from lawmakers next Wednesday about the safety
crisis that has engulfed the company founded by his
grandfather.

State Farm, whose records have been sought by two
congressional committees investigating recalls and complaints
related to unintended acceleration in Toyota cars and trucks,
revised its report on Friday of when it notified the government
about certain Toyota claims activity. [ID:nN19103942]

The insurer said earlier this month it had contacted the
National Highway Traffic Safety Administration in late 2007.
However, prompted by the public interest in Toyota, the insurer
reviewed its records again and has now found that it contacted
safety regulators initially in 2004, State Farm spokesman Phil
Supple said in an emailed statement.

The information has been sought by House of Representatives
committees probing questions around recent recalls of millions
of Toyota vehicles related to loose floor mats that can jam
accelerators and gas pedals that do not spring back as
designed.

The government believes five crash deaths are linked to
unintended acceleration and are investigating consumer
complaints alleging up to 29 other fatalities since 2000 could
be linked as well. Regulators have not linked any deaths to the
"sticky pedal" problem.

The first of three congressional hearings takes place on
Tuesday but much of the focus for the moment has settled on the
second hearing, the next day, when company president Toyoda is
scheduled to testify.

Toyoda said he intends to provide a "sincere explanation"
to the House Oversight and Government Reform Committee of
problems that led to the string of recalls since late last
year.

Toyoda's decision on Thursday to accept a congressional
request to testify ended days of uncertainty over how the
company would ultimately respond to calls that he come to the
United States to address safety questions. [ID:nN19143649]

The media-shy Toyoda, who took the top job last June,
originally said he had no intention of appearing before
Congress himself, drawing criticism from industry analysts and
Japanese politicians.

Even if Toyoda's appearance before the Oversight panel goes
well, the carmaker still has problems to overcome from
engineering challenges to lawsuits to restoring brand image.

Toyota's stock has fallen 22 percent since Jan. 21, erasing
more than $30 billion in market value.

U.S. Transportation Secretary Ray LaHood said on Friday
that he is "very pleased" he will be able to meet Toyoda next
week, and that the government has no intention of turning down
the heat on the automaker.

"We at DOT (the Department of Transportation) and we at our
safety agency (the National Highway Transportation Safety
Administration) will continue to work 24/7 and we will not
sleep until every Toyota is safe for every American who owns
one," LaHood told a news conference in Los Angeles.

Congress is examining several issues in a string of Toyota
recalls that date to September. A priority of lawmakers is how
Toyota and NHTSA handled complaints and other matters related
to unintended acceleration, whether the recalls were done
swiftly enough, and whether they were sufficient.

The Oversight committee will also hear from LaHood and a
witness representing the family of Mark Saylor, a California
highway patrol officer killed along with his wife, daughter and
brother-in-law in an August crash that triggered renewed
government scrutiny of unintended acceleration.

Toyoda has said the company is investigating the causes of
the unintended acceleration and braking that have led to a
recall of about 8.5 million cars worldwide.

INTENSE PREPARATION

Analysts and public relations experts stressed the need for
clear and honest testimony from Toyoda. By appearing to dodge
questions, Toyoda could further stain Toyota's reputation.

"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,
chief executive of public relations firm Hill & Knowlton
Japan.

Toyoda, 53, will have to craft and deliver a message that
resonates with millions of consumers, investors, employees and
lawmakers around the world.

He is likely to undergo intense preparation. Toyota may
hire lawyers to drill him with mock questions, one consultant
said. [ID:nTOE61I02C]

A company source said it had not yet been decided whether
Toyoda would speak in Japanese or English, but the company has
already contacted some translation companies.

In addition to the recalls over unintended acceleration, a
separate recall is under way to fix software controlling the
brakes on Toyota's iconic Prius hybrid. Regulators have also
begun a preliminary investigation into complaints about
steering problems in late model Corollas.

Toyota's safety woes are deepening at a time when
automakers worldwide are struggling to emerge from a sharp
sales dip that led to the bankruptcies of General Motors
[GM.UL] and Chrysler.
(Additional reporting by John Crawley in Washington; Nick
Carey in Detroit, Steve Gorman in Los Angeles; Helen
Massy-Beresford in Paris; Chang-Ran Kim, Taiga Uranaka,
Nobuhiro Kubo, Chisa Fujioka and Yoko Kubota in Tokyo; Editing
by Matthew Lewis)