Toyota Car Recall

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Toyota Motors Recall Crisis
The high-profile recall of over 8 million cars and chaotic communications management has tarnished the once stellar reputation of Toyota.
Industry : Manufacturing
It has been a sudden fall from grace for Toyota Motors Corporation , which has long been the world's most admired auto company, suddenly finds itself in a quandary. The high-profile recall of over 8 million cars involving more than 8 of its premium models (see data below) has tarnished its once stellar reputation. In 2008 Toyota overtook General Motors as the biggest car manufacturer in the world. Toyota has risen to become the world’s biggest car maker and secondbiggest in the United States, mainly due to the loyalty of its buyers. The first recall, on September 29, 2009, was to correct a possible foray of an incorrect driver’s side floor mat into the foot pedal well, which could cause brake pedal entrapment. The second recall, on January 21, 2010, was begun after some crashes were shown not to have been caused by floor mat incursion. This latter defect was identified as a possible mechanical sticking of the accelerator pedal causing unintended acceleration, referred to as Sticking Accelerator Pedal by Toyota. Following the floor mat and accelerator pedal recalls, Toyota also issued a separate recall for hybrid anti-lock brake software in February 2010.

Data summary
Toyota recalls by place and problem Accelerator Slipping TOTAL pedals, floor mat RECALL 29/09/09 PROBLEMS 21/01/10 * About 2.1 million vehicles are covered in both floormat and pedal recalls. Total vehicles approx: 8.54m Canada 8,450 270,000 400,000 678,450 China 75,552 75,552 Other Europe 44,500 1,530,000 1,574,500 Japan 223,000 223,000 US 146,550 2,210,000 5,350,000 7,706,550 UK 8,500 180,000 188,500 Other 5,000 180,000 185,000 TOTALS 436,000 4,445,552 5,750,000 10,631,552 * Hybrid Region/countrybraking, 09/02/2010
(Data Blog -Guardian.co.uk)

The situation was the most serious Toyota had faced in its half-century in the United States. National Highway Traffic Safety Administration (NHTSA) of the US started investigations following complaints from Toyota owners. The company has temporarily stopping production and sales in the United States and Canada of eight models.

A torrent of media attention has added to Toyota's woes as it's President and chief executive officer Akio Toyoda (grandson of the founder who took charge in June 2009) continues to be under fire as his company struggles with its worst downturn since it was founded in 1937.Given below are excerpts from some media reports Timeline- August 2009 to February 2010

Aug 28, 2009, (CNN)-US A family driving Lexus is killed after the accelerator pedal is caught in the floor mat.

Sep 17, 2009,(Reuters) -Japan Toyota Motor Corp is preparing a $1 billion marketing campaign to boost flagging U.S. sales, expanding hybrid models under the Prius name and allowing its dealers more room to keep pricing competitive. The moves by Toyota reflect some of the first big changes in the way the top global automaker is running its business in its largest single market since Akio Toyoda took over as president in June. Toyota dealers at a meeting with Toyota executives in Las Vegas this week were told that the automaker would adjust pricing on new Toyota models by widening dealer margins to give sales representatives more leeway to close deals with car shoppers.By widening that dealer profit margin, Toyota is giving its dealers a better return on new car sales and making it easier for them to offer car shoppers a higher price on a used-car trade-in, dealers who attended the meeting said. The changes to the vehicle pricing will vary model-by-model, dealers said.

Sept 30,2009,(Reuters) - U.S. Toyota Motor Corp announced its biggest recall ever -- 3.8 million vehicles in the United States -- citing the risk that loose floormats could force the accelerator down, a problem being investigated as a possible cause of crashes that killed five people.

October 2009,(Reuters) - U.S. Traffic safety authorities have launched an investigation into Toyota Motor Corp's 2000 and 2001 model year Tundra pickups following complaints alleging that "severe frame corrosion" caused brake system failures or spare tire separation.

The probe follows the largest U.S. recall for Toyota announced just a week ago and comes at a critical time for the company as it scrambles to hold on to a hard-earned reputation for safety and quality that helped it surpass General Motors Co as the world's top automaker last year. The National Highway Traffic Safety Administration said on Tuesday it had received 20 complaints related to the Tundra, 15 alleging that the under body-mounted spare tire separated from the rear cross member and five alleging damaged brake lines due to corrosion on the driver's side rear cross member. An estimated 218,000 units are involved, the NHTSA said. A Toyota representative was not immediately available for comment.

Nov 2, 2009, (CNN) The National Highway Traffic Safety Administration(NHTSA) took issue with how Toyota worded its warnings. The agency released a statement Wednesday accusing the world's largest automaker of sending a letter to owners with "inaccurate and misleading information." Toyota's letter told owners that NHTSA said "no defect exists in vehicles in which the driver's floor mat is compatible with the vehicle and properly secured." The agency took those as fighting words: In its view, the vehicles have an underlying defect that means floor mats can't be properly secured. NHTSA recommends that consumers remove the floor mats from affected cars to eliminate the risk that a mat will become stuck and trap the accelerator. But that is "simply an interim measure," the agency said. It won't consider the problem solved until Toyota comes up with "a suitable vehicle-based solution." The standoff could have turned ugly, but when called out on the issue, Toyota backed down fast. "Toyota agrees with NHTSA's position that the removal of floor mats is an interim measure and that further vehicle-based action is required," the company said in a statement released late Wednesday. "We are in the process of developing vehiclebased remedies." Toyota has not yet launched an official recall campaign. Nov 25, 2009(CNN) Toyota announced that it will fix gas pedals in millions of cars for an accelerator problem that had previously been blamed on floor mats.The automaker said that "the shape of the accelerator pedal will be reconfigured to address the risk of floor mat entrapment." Floor pads of the vehicles will also be changed.Irv Miller, group Vice President of environmental and public affairs for Toyota, said in a teleconference that the changes will apply to at least 4 million vehicles. Jan 21, 2010(CNN) Toyota Motor Sales USA is recalling 2.3 million vehicles to correct a problem that could cause the vehicles' gas pedals to stick. This new recall is separate from an on-going recall of 4.2 million Toyota and Lexus vehicles to correct a problem in which the pedals could become stuck under a loose floormat.

This latest recall is unrelated to an earlier, and still ongoing, recall of 4.2 million cars to fix a problem in which the gas pedal could get hung up on the car's floor mats. It announced that it will fix gas pedals in millions of cars for an accelerator problem that had previously been blamed on floor mats. The automaker said that "the shape of the accelerator pedal will be reconfigured to address the risk of floor mat entrapment." Floor pads of the vehicles will also be changed.

Jan 27, 2010 (Reuters)Tokyo/Detroit Toyota Motor Corp will suspend U.S. sales of eight models subject to a massive safety recall, an unprecedented move that sent its shares tumbling and raised questions about the timing of its earnings recovery. Toyota said it would also halt production of the models, including the best-selling Camry, at plants in the United States and Canada in the first week of February. Shares in the world's biggest automaker suffered their biggest slide in eight months, falling 4.3 percent in a Toyko market down 0.7 percent on Wednesday. Last week, Toyota announced it would recall 2.3 million vehicles in the United States to fix potentially faulty accelerator pedals, its second large recall in four months in the United States, its biggest market. The series of recalls threaten to damage Toyota's reputation for safety and quality that helped it ascend to the top of the global auto industry.

Jan 28,2010 (Reuters) At urging of NHTSA, Toyota recalls an additional 1.1 million vehicles due to the risk that a loose floormat could trap the accelerator in an open position. That adds to the recall of 4.2 million vehicles announced in November 2009.

Jan 29,2010 (ABC News) Two days after Toyota suspended sales of eight popular car models while sometimes fatal sticking gas pedals are investigated, and a day after it announced the recall of 1.1 million more cars, there are now questions surrounding how long the company took to investigate the problem while accidents continued. Documents filed with the federal government by Toyota show the company first received field reports of the sticking gas pedals more than two years ago and, by last October, saw a growing problem.Starting in March 2007, Toyota received field technical information regarding reports of accelerator pedals demonstrating symptoms such as

rough operation or being slow to return to the idea position," a letter sent from Toyota to the National Highway Traffic Safety Administration(NHTSA) says.

Feb1,2010(CNN)- Davos, Switzerland Toyota's president apologized Friday for the gas pedal problems that have forced the recall of millions of vehicles in the United States and Europe, Japanese media reported. It was Akio Toyoda's first remarks since the latest round of recalls began last week. "We're extremely sorry to have made customers uneasy," he told Japanese news agency NHK. "We plan to establish the facts and give an explanation that will take away the customers' concern as soon as possible."

Feb3,2010(CNN)-US
In the wake of massive recalls for gas pedal-related problems, Toyota Motor Co. is now faced with mounting complaints of brake problems in its 2010 Prius hybrid, one of the car maker's most iconic and popular models.

In the U.S., more than 100 complaints alleging poor brake performance have been lodged with the National Highway Traffic Safety Administration against the 2010 Prius, a newly designed version of the car that was introduced last summer.Toyota drivers are feeling mounting confusion and frustration as they attempt to fix their recalled cars. And Toyota dealers are under the gun as they face sometimes angry customers. "It's just getting crazy," said Andy Phillips who heads the service department at Sandy Springs Toyota in Georgia. "Well, you know. I'm tired, the phones are exploding and, basically, I've had enough."

Feb 4, 2010(CNN)-US
Toyota confirms that the total number of vehicles recalled now comes to 8.1 million.Toyota Motor says the massive recalls of vehicles due to gas pedal problems could end up costing it $2 billion.Those costs were not enough to stop it from reporting significant improvement in earnings in the quarter ending Dec. 31, and a much better forecast for the fiscal year ending in March. But it is clear the safety and recall problems will remain a major headache for the company.The automaker blames a software glitch for braking problems in its 2010 Prius. Without issuing a recall of its iconic Prius hybrid vehicles, Toyota on Thursday said a software glitch is to blame for braking problems in the 2010 model."We would want to be given a little time," Hiro Yuki Yokoyama, Toyota's managing officer, said when reporters asked whether a recall was in the works.Toyota's stock has dropped more than 12% so far this year . The National Highway Traffic Safety Administration announced Thursday it is opening a formal investigation into problems with the braking system of Toyota's Prius hybrid.

Toyota had only limited comment on the probe. "We have heard about NHTSA's intention to begin an investigation. Toyota will cooperate fully with NHTSA's investigation," the company said in a statement.

Feb 9, 2010 (CNN)-US Toyota's president apologized profusely as he announced the global recall of more than 400,000 of the automaker's 2010 hybrid models, including the popular Prius, for problems in their anti-lock braking systems.

"We do apologize for the inconvenience and concerns we've given to the customers," President Akio Toyoda said in making the recall announcement from the automaker's headquarters in Tokyo. "Quality is our lifeline for Toyota."The company will work to recover its customers' trust, Toyoda said.

Feb10 , 2010 (CNN)
Toyota Motor Sales USA Inc. is telling dealers to suspend sales of eight models, and halting production of those models, after a recall to correct a problem that could cause the accelerator pedal to stick. suspends sales and halts production of eight models due to its recall for sticking accelerator pedals. Toyota Motor Sales USA Inc. is telling dealers to suspend sales of eight models, and halting production of those models, after a recall to correct a problem that could cause the accelerator pedal to stick. "Toyota has a legal obligation to stop the sale of vehicles that would be affected under the recall," a National Highway Traffic Safety Administration (NHTSA) spokesman said.In issuing the recall, the automaker said it had not yet found a way to fix the problem, but wanted owners to be aware of the potential issue.While stopping sales of recalled is standard procedure, stopping production of the cars is unusual, a Toyota spokesman admitted.

Feb 19, 2010 Huffington Post-Tokyo
Toyota's president Akio Toyoda, under fire for his handling of sweeping recalls, will testify before a congressional hearing next week, appealing to U.S. lawmakers and aggrieved customers for understanding while the company fixes its safety problems. Japanese officials praised the decision by Toyoda, grandson of the company's founder, to accept a formal invitation to explain the recalls and outline plans by the world's largest automaker to ensure safety and satisfy worried car buyers.

"I will be happy to attend. I will speak with full sincerity," Toyoda told reporters Friday in Nagoya, near where the company is headquartered. "I am hoping our commitment to the United States and our customers will be understood," said Toyoda. Toyoda said he will cooperate with U.S. regulators looking into recalls of over 8 million vehicles worldwide, including top-selling models like the Corolla, the Camry and the Prius hybrid. Earlier this week, he said he did not plan to attend the hearings unless invited. That decision drew heated criticism in the United States. On Thursday, he agreed to a request to attend from the chairman of the U.S. House of Representatives Committee on Oversight and Government Reform, Rep. Edolphus Towns, a Democrat from New York.

February 24, 2010 (Economist ) In testimony delivered to the House oversight committee on Wednesday February 24th, Mr Toyoda, the carmaker’s boss, acknowledged that in its pursuit of growth Toyota stretched its lean philosophy close to breaking point and in so doing had become “confused” about some of the principles that first made it great: its focus on putting the customer’s satisfaction above all else and its ability “to stop, think and make improvements”.

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