What Led to The Downfall ofThe Toyota Brand-Name Worldwide? s1170178 Yuya Ito
About Toyota Toyota was founded by Kiichiro Toyoda in 1937, and Akio Toyoda is grandson of the company’s founder is Toyota’s president. Toyota is a multinational automaker headquartered in Toyota, Aichi, Japan. Toyota has about 318,000 employees, and is the world’s largest automobile manufacture by production. Toyota group companies are Lexus, Daihatsu , Hino and so on.
What are The Factors for Toyota Downfall? Lexus crashed because accelerator is stuck in August 2009, and all four people in the vehicles was killed. U.S. Transportation Secretary Ray LaHood warned Americans not to drive recalled cars in February 3, 2010. Many fatal accidents happened after first case, and Toyota’s handling was too slow.
Recall Timeline Toyota recalled 3.8 million U.S. vehicles because floor mat problems cause the accelerator to get stuck in September 2009. Toyota recalled millions of vehicles involving popular to fix a problem that could cause accelerator pedals to stick even without the presence of floor mats in January 21, 2010. Toyota widened the recall of vehicles affected by the floor mat accelerator problem by more than one million vehicles in January 27, 2010. Toyota recalled million of vehicles in Europe in January 29, 2010.
Recall Timeline Toyota recalled about 437,000 Prius and other hybrid vehicles worldwide to fix brake problems in February 9, 2010. Toyota recalled about 8,000 Tacoma to fix a problem with the front propeller shaft that could cause the vehicle to lose control February 12, 2010. Toyota recalled about 3,800 Lexus in U.S. to fix a problem with the steering system in May 21, 2010. Toyota recalled about 270,000 Lexus vehicles worldwide to fix engine stalling problems in July 2, 2010.
Effect of Other Automakers Toyota has an extremely broad product line, so other automakers came from Toyota which sell a similarly broad spectrum of cars. GM (12 percent), Nissan (29 percent), Honda (13 percent) and Hyundai (10 percent) all experienced strong gains over sales in February 2009. Biggest winner Ford sold 142,006 cars and light trucks compared with 99,050 in February 2009.
How is Toyota Trying to Deal with This Problem? Toyota had be reconfiguring the shape of the accelerator system, redesigning the floor mat and installing a break override system in November 2009. Toyota had be temporarily suspending sales of popular vehicles and also halted production at five manufacturing facilities for the week of February 1 in January 26, 2010. Toyota came up with a plan to fix the accelerator pedals and that parts are being shipped to dealers in February 1, 2010.
How is Toyota Trying to Deal with This Problem? Toyota paid a $16.4 million fine to settle allegations by U.S. regulators because Toyota was too slow to recall vehicles in May 18, 2010. Toyota offered 0 percent financing over five years on 80 percent of its lineup to boost lagging sales. Customers who already own Toyota products received two years of free maintenance on a new purchase.
Conclusion Toyota happened problems from some parts of its vehicles, and Toyota recalled vehicles. Customers who want to buy car moved from Toyota to other automakers, and especially Ford increased extremely sales. Toyota worked out various schemes for problems, but restoration of the Toyota’s confidence may be difficult.
References CBSNEWS.COM, Toyota’s Humbling Fall, http://www.cbsnews.com/stories/2010/02/24/eveningnews/main624 0051.shtml The Washington Times, Toyota sales fall; Ford sharply, http://www.washingtontimes.com/news/2010/mar/03/toyotas-sales- fall-as-more-fatalities-reported/ Wikipedia, Toyota, http://en.wikipedia.org/wiki/Toyota msnbc.com, Toyota recall timeline, http://www.msnbc.msn.com/id/35240466/ns/business- autos/t/toyota-recall-timeline/#.TxvVN4FGSuI DailyFinance, Ford and Honda May Benefits as Toyota Recall Grows, http://www.dailyfinance.com/2010/01/28/ford-and-honda-may- benefit-as-toyota-recall-grows/