Massive Recall May Cost Toyota A Lot
Toyota, the biggest car manufacturer in the world, have lately recalled millions of its vehicles due to faulty accelerator pedals to avoid potential and further accidents.
The massive recall Toyota announced came on Tuesday 26th of January as some Toyota brand cars previously sold that totals up to 2.3 million have been discovered to have accelerator pedals that could likely get stuck and trigger uncontrollable acceleration.
The Toyota models subjected to recall are:
Avalon (2005-2010)
Camry (2007-2010)
Corolla (2009-2010)
Highlander (2010)
Matrix (2009-2010)
RAV4 (2009-2010)
Sequoia (2008-2010)
Tundra (2007-2010)
Not every Camry models have the problem with sticking accelerator pedal, particularly Camry Hybrids. Other models like the Yaris, Land Cruiser, Tacoma, Prius, etc. have also passed quality inspection.
Because of this, Toyota has decided to suspend the manufacture of these particular models on six assembly plants around North America.
This has costed Toyota Motors Corp. both considerable profit loss and their reputation as a reliable car manufacturer. General Motors used to be the number 1 car maker in the world but that all changed as Toyota overtook worldwide sales, making them number one. With this unexpected turn of event, however, the popular Japanese car manufacturer’s future wobbles on edge.
Toyota’s European market can also go through a same recall since a few parts of the gas pedals that are used in North America are also used on some Toyota models in Europe. It is believed that only one supplier from the US was the only one that supplies the defective part.
The recall is also being related to the previous episode regarding the auto giant that happened in Japan in 2006. The incident involved the Japanese government conducting a criminal investigation on Toyota due to several accidents that took place and were traced to manufacturing problems. Toyota personnel did not get charged but this incident has come back to haunt the company in a certain way.
Shares of Toyota in the Tokyo stock market were said to have fallen 4.3 per cent right after the recall.
Toyota has earlier announced that its expected car sales forecast in North America will be above 2 million cars and above 8 million car sales worldwide for 2010. Then again, due to this recent embarrassment, that sales forecast could dramatically plunge or could even cost Toyota huge in their sales profit.
The quality control conundrum Toyota’s now having is also being blamed on the growth strategy which was organized by its previous president Katsuaki Watanabe. Part of his growth stategy involved increased and speedy production which is said to have played a role poor quality control. In 2009, Watanabe was succeeded by the grandson of Toyota’s founder, Akio Toyoda.
Numerous safety firms have reported that over 2,000 incidents of sudden acceleration involving Toyota vehicles and at least six casualties were also reported.
Toyota’s image may have been tainted because of this slip but it is still a leader when it comes to green technology as it constantly releases brand new models of the Prius.
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