The world's No. 2 automaker behind General Motors Corp. said it will strengthen measures against harassment and discrimination, including thoroughly reviewing Toyota's practices and increasing training for senior executives to prevent misconduct.

"At Toyota, we have zero tolerance for sexual harassment or discrimination of any kind," said Toyota Motor Corp. President Katsuaki Watanabe, adding that the company hoped to build its reputation for excellence under the new North American team.

The sexual harassment allegations come at a time when Toyota is briskly boosting sales in North America on a solid reputation for mileage and quality. Some analysts say Toyota is on track to overtake General Motors as the world's top automaker in the next couple of years.

Kobayashi's lawsuit said Otaka manipulated her travel and work schedules so they were alone together, had her accompany him to social functions, and groped her at a Washington D.C., hotel and in New York's Central Park.

When she reported the inappropriate conduct to Toyota officials, they urged her to work it out privately with her married boss, the lawsuit says. Kobayashi, 42, said that as a result of her complaints she was removed from the job and told she could either leave the company or return to a former position in the planning department.

Toyota, which is also targeted in the lawsuit, has not commented on it.

"While I expect to be fully vindicated in the recently filed litigation against Toyota and me, I have regretfully come to the conclusion that my continued service as president would serve as a distraction and ultimately not be in the interests of the company," Otaka said.

Japanese companies have often been castigated for their slow cultural changes regarding views on the role and advancement of women in the workplace.

Sexual harassment cases are still relatively rare and Kobayashi's lawsuit has been viewed with alarm and surprise by the Japanese media, partly because of the amount of her claim.