Preview

Toyota Recall

Powerful Essays
Open Document
Open Document
1762 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Toyota Recall
Toyota Recall

1. WHAT ARE THE PRIMARY CAUSES OF TOYOTA’S RECALL PROBLEM? The primary cause of Toyota’s recall was outsourcing their pedal manufacturing and assembly. To this day Toyota has recalled an estimated 2.3 million cars in the U.S. affected by the accelerator assembly problem, 4.2 million vehicles to fix the floor mat issue and out of all those vehicles 1.7 million of them were involved in both recalls (Linebaugh & Shirouzu, 2010). Amongst them are the 2008-2010 Sequoia sport utility vehicles. The main recall problem with the Sequoia’s is the accelerator pedal inside the pedal sensor. What happens over time is that the break lever rubs against the surface of the accelerator and overtime the surfaces may begin to stick. In the event that they do stick the pedals become slower to return to their original state or in some rare cases stick together leaving the throttle open and increasing the risk of a crash. The reasons for the pedals sticking vary from: materials used wear and tear and environmental conditions (Pedal Recall, 2010) According to Toyota they have identified the problem and have come up with a simple solution, they are doing everything they can to resolve the issue as quickly and convenient as possible in hopes of repairing the company image.

2. WERE THESE THE RESULT OF OUTSOURCING?

"The whole problem started with the outsourcing of the pedal and the pedal assembly," said Vito Polera, fleet manager at Toronto 's Northwest Toyota dealership. "When Denso couldn 't meet the demand, Toyota farmed out to CTS, which is the affected part" (Deveau, 2010). The pedals in question were manufactured by CTS Corp., a company that Toyota had to turn to when one of their primary tier one suppliers could not keep up with the demand. Yes this recall was a direct result of outsourcing, but other factors played a huge part. CTS stated that the accelerator pedals were manufacturer based on Toyota’s specific design specifications (Hannon, 2009). CTS has a



References: 1. Consumer FAQ, accessed 25/03/2010, http://pressroom.toyota.com/pr/tms/customer-faqs-regarding-the-sticking-153495.aspx 2. Deveau, S., 2010, Outsourcing effort rains on Toyota 's parade, accessed 21/03/2010, http://www.financialpost.com/story.html?id=2490307 3. Dodge, J., 2010, Toyota claims to have remedied “pedal entrapment” problem, accessed 15/03/2010, http://www.smartplanet.com/technology/blog/thinking-tech/toyotaclaims-to-have-remedied-pedal-entrapment-problem/2902/ 4. Hannon, D., 2009, Shorter is better for Toyota 's supply chain, accessed 25/03/2010, http://hasanyorukoglu.com/blog/?tag=toyota-production 5. Healey, J.R., 2010, Toyota recall launches CTS out of obscurity, accessed 16/03/2010, http://www.usatoday.com/money/autos/2010-01-29-toyotacts29_CV_N.htm 6. Linebaugh, K. & Shirouzu, N., 2010, Toyota Halts Sales Over Safety Issue, accessed 20/03/2010, http://online.wsj.com/article/SB20001424052748704905604575027671658649384.html 7. Pedal Recall, accessed 25/03/2010, http://www.toyota.com/recall/pedal.html 8. Toyota Motor Manufacturing, Alabama, Inc. (TMMAL), accessed 22/03/2010, http://www.toyota.com/about/our_business/operations/manufacturing/tmmal/

You May Also Find These Documents Helpful

  • Good Essays

    Mgmt 412

    • 576 Words
    • 3 Pages

    Toyota Motor Corporation has been a dominant name in vehicle manufacturing for several decades. Despite the patriotic drive in the United States to "buy American", the company has held its own, remaining a dominant and continually growing company in the corporate world of transportation. However, lately they been on the headlines of the news for vehicles being recalled, which is effecting the reputation of TMC in the market place. While the brand image of Toyota has recently taken a serious blow due to a number of recalls, including for the Camry Hybrid, overall the Toyota brand is very strong. The pros and cons of the Camry Hybrid are as follows:…

    • 576 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    However, the Toyota accelerator problems were not fully investigated until the high-profile crash involving the Saylor family in August 2009 gained national media attention. Also, federal regulators in 2007 asked Toyota to consider installing software to prevent sudden acceleration in its vehicles after receiving complaints that vehicles could race out of control, company documents show. Yet the automaker only began installing the safety feature, known as brake override, in January, 2010 after a widely publicized accident involving a runaway Lexus ES that killed four people near San Diego.…

    • 1963 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    On September 29, 2009, Toyota recalled 3.8 million U.S. vehicles, and on January 16, 2010, another 2.3 million more were recalled for what was determined years after the initial complaint of a “stuck accelerator pedals.” (Greto, 2010) After Toyota’s executives were called to congress and forced to stop selling their cars, the U.S. fined Toyota with a 16.4 million dollar civil penalty. In addition, Toyota Motor Corp., in December 2012, agreed to pay $1.1 billion to settle a class-action lawsuit stemming from complaints of unintended acceleration in its vehicles that soured its reputation for quality and undermined its sales globally. (Ramsey, 2012) Three processes were identified within Toyota that will benefit from improvement: 1) Leadership, 2) Quality Management, and 3) Communication.…

    • 3014 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    1101IBA Toyota

    • 1714 Words
    • 5 Pages

    In 2008 Toyota became the world’s largest carmaker when it successfully exceeded General Motors in sales and production. However, this leading position of Toyota had changed since the end of 2009. In the United States, Toyota’s largest marketplace, a fatal crash of a Lexus ES 350 on August 28th 2009 was highly publicized, due to the gas pedal which was stuck and the car went out of control (Los Angeles Times, Oct.25, 2009). Since then, Toyota’s vehicles have been largely exposed to a series of issues associated with unintended acceleration problems, and these have triggered Toyota’s escalating crisis and its massive recalls of approximately 9 million vehicles globally within a six months period. For Toyota, this is indeed a tragedy that is not only related to heavy financial losses due to associated repairs costs, market share lost and production suspending, but also to Toyota’s reputation for its matchless quality and management. The firm's reputation for quality…

    • 1714 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Toyota Problem Statemeny

    • 961 Words
    • 4 Pages

    References: Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The accelerator crisis. [Case No. A09-…

    • 961 Words
    • 4 Pages
    Good Essays
  • Best Essays

    The current situation Toyota faces is the recall of millions of vehicles due to sudden acceleration causing the death of a few consumers. The delayed reaction from Toyota has them scrambling to make things right in the eyes of the customers and law makers. Robert Cole (2011) states “there appears to be two root causes for Toyota’s quality problems: the first is an outgrowth of management’s ambitions for rapid growth; and second is the result of the increasing complexity of the company’s products.”…

    • 1643 Words
    • 7 Pages
    Best Essays
  • Best Essays

    Environmental Analysis Paper

    • 2768 Words
    • 12 Pages

    As many may be aware, Toyota is not shy to the media spotlight. Toyota has been the number one automobile distributor since 1935 when the founder, Kiichiro Toyoda revealed their first model the A1 and by the 1950s. Toyota had produced more than 100,000 vehicles. However, not all of Toyota’s fame has been popular. Many will remember the major automobile company by the massive number of recalls totaling nearly one million, occurring in several countries across the globe. Half of the recalls were in Japan alone, but others were in the United States, Zimbabwe, South Korea, China, and Tanzania, to name a few. The recalls were from acceleration problems in different vehicles such as the Prius, Hybrid, Camry, and Sequoia Sports Utility Vehicles. On February 1, 2010, Toyota Canada Incorporation made the announcement that it would be recalling approximately 270,000 Toyota vehicles equipped with a specific accelerator pedal assembly and suspending delivery of the eight models involved in the recall on January 26, 2010. In this paper, Team C will elaborate on Toyota and its marketplace, provide the latest corporate reports, compare the three macroeconomic variables of employment, GDP and how it relates to Toyota’s deficit performance, provide its environmental analysis, and analyze information that identifies any relationships between the United States economic trends and the operational performance of Toyota.…

    • 2768 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Practice

    • 744 Words
    • 2 Pages

    Toyota used to sit on top of the world. It basked in the reputation of building high-quality cars efficiently. It enjoyed unprecedented growth, even surpassing General Motors as the largest car manufacturer in the world. But all of that came tumbling down with reports that cars were accelerating out of control, careening down highways, and putting everyone’s lives in danger. There was even a recording of a 911 call from an off-duty policeman who lost control of his car and died in the ensuing crash. Toyota responded with a recall of historic proportions—nearly 8 million cars in the United States and 1.8 million in Europe. It even suspended sales of brand new models, including the best-selling Camry and Corolla, until the vehicles could be repaired. But still, there was confusion about what was causing the problems—was it the floor mats, the braking system, the software controlling the engine, or something else? Conspiracy theorists argued that Toyota had no clue what was causing the sudden acceleration and that their recall was basically worthless.…

    • 744 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Crisis Communication Paper

    • 1410 Words
    • 6 Pages

    After the incident, Toyota tried to find a solution for the issue and its spokespeople sent messages out to the media assuring the public of the quality its products. These measurements were an effort to win back the good reputation that they had prior to this incident. Toyota felt it was necessary to suspend the production of eight of its most popular units to focus on finding a solution to the problem with its automobiles. Toyota Public relations campaign was considered a one of the best public relations campaign in years because their strategy was based on proper decisions and cautiousness to promote the peace of mind of its consumers.…

    • 1410 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    The Toyota Recall

    • 3585 Words
    • 15 Pages

    Toyota originally blamed floor mats for the recall even though the gas pedal was the actual cause, but the car owners need to know exactly what was causing the gas pedal to accelerate and stick, without releasing. In conclusion that Toyota has a problem producing defective gas pedals, the following are examples: October 25, 2009 LA Times reported, “A federal report finds a possible flaw in the gas pedal design of a runway Lexus that crashed in August, killing CHP officer Mark Saylor and three family members and leading to a massive recall.” Resulting in Toyota’s first recall due to defective gas pedals because on January 21st, the number one car company recalled two point three million vehicles and the underlying problem was a “sticky pedal” which did not properly release. The company announced that it would halt sales and production, including some of its top selling models with the gas pedal problem, and fix the defect that caused the pedals to stick. Therefore unintended acceleration would not happen again, due to the pedal. The emphasis is about fixing customer cars and placing sales on the back burner, yet Toyota waited twelve days to come up with a solution. Jim Lentz spoke on February 1st, 2010 saying, “Dealers priority should be on repairing customers’ vehicles rather than fixing vehicles for sale on the lot.” The phrase “actions speak louder than words” is true we don’t just want to hear talk, but an approach to take charge or action. In terms of time one would expect something to be done as soon as possible. Especially when it comes to safety, steps have been taken that shows at least they recognized the problem and came up with a solution.…

    • 3585 Words
    • 15 Pages
    Better Essays
  • Good Essays

    Wald, Matthew, L. (2011). Electronic Flaws Did Not Cause Toyota Problems, U.S. Says. The New York Times.…

    • 675 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Cars Demand and Supply

    • 891 Words
    • 4 Pages

    Car recalls: Toyota Company had substantial recalls of a numbers of models that generated serious accidents and fatality. The quantity of cars demand for that certain producer decreased and Toyota compelled to reconsider how to sell/market its products to rebuild the trust of its customers. As news broadcasts of Toyota’s multimillion vehicle recall, the National Highway Traffic Safety Administration (NHTSA) is witnessing an increase in driver dissatisfactions, including recent reports of injury and death [1].…

    • 891 Words
    • 4 Pages
    Better Essays
  • Good Essays

    The quality of the Toyota products has not been up to company standards lately as there have been more customer complaints and serious lawsuits from customers. In 2010 alone, Toyota has had recalls on 400,000 Avalons, 600,000 Minivans, and over 400,000 Prius vehicles as well as certain Lexus HS 250h models (Automotive Advertising Network, 2010). The Toyota quality process consist of Lean Six Sigma made popular by Motorola, Toyota, and General Electric. The iSixSIgma (2010) website, Six Sigma is a rigorous and disciplined method that uses data and statistical analysis to measure and improve a company 's operational performance by identifying and eliminating "defects”. With all of the current recalls, Toyota must find a way to improve the testing process and sampling of products that go in to the production of Toyota vehicles.…

    • 736 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Signs of the impending recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into driver reports of “surging” in Toyota’s Camry models. This investigation was closed the next year declaring that there were no defects. Known in the industry for their quality and reliability, Toyota would silently recall almost nine million Toyota and Lexus models due to the sudden acceleration problems. Because of the lingering reaction in dealing with these problems, Toyota’s leadership had been highly ridiculed, so now they had a big job in identifying the solution that would make sure of the safety of their vehicles and reinstate consumer confidence, as well as protecting the Toyota brand and salvaging the dropping share prices.…

    • 1706 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The accelerator crisis. [Case No. A09-10-0011]. Glendale, AZ: Thunderbird School of Global Management.…

    • 2274 Words
    • 10 Pages
    Powerful Essays