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In light of Toyota Motor Corp. (TM) string of recalls recently, one can wonder what the large automaker is going to do in the U.S. to salvage its reputation. Toyota, as far as this writer can recall, has never seen a model-variety recall like this in its history. So much is wrong that the world's largest automaker has halted production of eight separate vehicle models until it finds out just what is causing some of them to accelerate uncontrollably.
Five assembly lines that help build these models are being suspended as of Monday, and Toyota has sent messages to 1,200 U.S. dealers asking them to stop selling the models in question immediately. The models include some of Toyota's most popular: RAV4, Corolla, Matrix, Avalon, Camry, Highlander and the Tundra pickup.
Not only were dealers told to stop selling new models, but to cease selling used versions of these models as well. Nothing like stopping production and the sale of seven models to put a dent in quarterly revenue. If Toyota had one of the most reliable reputations in the auto industry, this is tarnishing it quite badly. The seven models reflect 57% of Toyota's sales in the U.S. last year.
First, there was a recall involving 4.3 million vehicles a few months ago due to door mats. Then, another recall involving 2.3 million vehicles. Now, production has been halted on models representing more than half of the sales for the world's largest automaker.
Meanwhile Ford Motor (F) has roared in the U.S. in terms of sales, having come out of 2009 stronger than ever and mounting an advertising blitz and product initiatives that could pose serious competition from the domestic automaker to its Japanese rival in the American auto market.
In 2009, Toyota led all manufacturers selling automobiles in the U.S. in terms of recall amounts. That's music to the ears of Ford, but increasingly disastrous to Toyota -- once the king of reputation and perceived reliability.
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Reader Comments (Page 1 of 1)
1-29-2010 @ 12:24PM
Jerry Gropp Architect AIA said...
As the long-time owner of a '92 Corolla and a '07 Prius which have been wonderful, beautifully designed and built cars, I'm really sorry to see Toyota in such a bind. JG
1-29-2010 @ 12:27PM
Jerry Gropp Architect AIA said...
Here's more on why I'm so impressed with my latest Toyota- my '07 Prius that I found through AOL Autos. JG
http://knol.google.com/k/jerry-gropp-architect-aia/my-hybrid-house-design-project-on-lopez/246qxuxd260sm/8#
1-29-2010 @ 2:15PM
AEA said...
I am wondering if the General Managers / VP's in charge of supplier quality & product engineering are going to retain their jobs after this big fiasco! The impact is in the billions! who knows? Of course, Toyota's reputation is not going to be the same after this. Someone must have slept on the wheel! I am sure a certain engineer, mechanic, dealer, customer, ... had brought attention to this problem in the past, but it is highly likely upper manager(s) chose to dismiss the problem, because it is the "politically correct" thing to do. Does anyone know who is in charge of Supplier Quality and Product Engineering at Toyota North America? Are they any rejects from the ex-Big 3?
1-30-2010 @ 9:56AM
Jon Harmon said...
Toyota's decision to ship new accelerator assembly plants -- rather than to 8 million customers who are waiting for a fix -- will anger customers, dealers, and ultimately Congress, and set off untold litigation.
Toyota needs to act quickly and put its customers' safety first -- says the author of a new book on the Ford-Firestone crisis. See http://forceforgoodcom.com/
1-30-2010 @ 10:48AM
RON said...
it's a shame that thousands of people will be affected by toyota's rcall and shutting down plants.
people can point all the fingers they want at who is to blame. toyota is ultimately responsible because their name is on the finished product.