Toyota had long been recognized as one of the largest and most successful automakers in the world. However, in 2009 it began experiencing issues with unintended acceleration in some of its vehicles. Over 12 million vehicles were eventually recalled worldwide due to problems with sticky gas pedals and floor mats that could trap accelerators. The recalls severely damaged Toyota's reputation for quality and reliability. Toyota was fined $48.8 million by regulators for its handling of the recalls as it worked to repair its brand image.

1. TOYOTA
THE WORLDS MIGHTIEST
CARMAKER FALLS INTO THE
DITCH.

2. INTRODUCTION
Toyota has long been recognized as seventh largest company in the world and the
second largest manufacturer of automobiles, with production facilities in 28
nations around the world (Toyota Assembly and part, 2011). As been the
world third largest manufacturer of automobiles in unit sales and in net sales,
Toyota has also created good customer relationship and provides customers
with the products they need. Toyota Motor Company Ltd. was established in
Koromo Town, Japan in 1937 by Mr. Kiichiro Toyoda. Koromo was a major
producer of silk and before the founding of the automobile company, the
Toyoda family was involved in the manufacture of automatic looms (a device
use to weave cloth) used by the silk and cotton industry (Toyota Motto
Corporation, 2011).

3. The company never
encountered a problem
or any bad history until
there was recalls of
some automobiles by
the Toyota Motor
Corporation which
occurred at the end of
2009 and commerce of
2010. Although the
Toyota Company is best
known today for its
cars, it is still in the
textile business

4. Toyota motor
corporation
becomes the worlds
mightiest car
maker in April 2008.
it ends GM 77 year
old reign as the
worlds largest auto
maker. It sells 2.41
M units against
GM’s 2.25 M units in
the first quarter of
2008.
2008-TOYOTA REACHES THE TOP
SPOT

5. AUGUST 28, 2009: TOYOTA FALLS INTO THE DITCH
Off-duty California Highway Patrol officer Mark Saylor is
traveling on Highway 125 in Santee, California (northeast of
San Diego), with three family members, when the 2009 LEXUS
Es 350 he is driving suddenly accelerates out of control, hits
another car, tumbles down an embankment and catches fire.
While the car is careening down the highway at speeds
estimated to exceed 100 mph, one of the occupants calls 911
and reports that the car has “no brakes.” All four are killed in
the ensuing crash.

6. 2009
September 29, 2009: Toyota announces it is recalling the floor mats on 4.2 million
Toyota and Lexus vehicles. The company advises owners to remove their floor mats and
place them in the trunk and directs dealers to use zip ties to secure the floor mats in
their vehicles so they could not interfere with the gas pedal.
October 30, 2009: Toyota begins sending letters to owners notifying them of an
unspecified upcoming recall to fix the unintended acceleration issue. In the letters
Toyota says “no defect exists.”
November 25, 2009: Toyota dealers are instructed to remove the gas pedal and
shorten it so it cannot interfere with the floor mats.
December 26, 2009: A Toyota Avalon crashes into a lake in Texas after accelerating out
of control. All four occupants die. Floor mats are ruled out as a cause because they are
found in the trunk of the car

7. January 21, 2010: Toyota
recalls another 2.3 million
Toyota-brand vehicles
because of a problem with
the gas pedal.
January 23, 2010: AFP reports
Toyota may recall 2 million
vehicles in Europe for the
same problem.
January 26, 2010: Toyota
announces it is
immediately halting the
sale of all models affected
by the January 21 pedal
recall
2010

9. BACKGROUND OF THE DISASTER
▪Toyotas Outsourcing policy
▪Toyota Boasts of its “Toyota Production
System” But compromises it
▪Toyotas Limitless Persuit Of Growth And
Market Shares
▪The Obsession With Overtaking GM and
becoming World NO 1

10. Toyota, however, took the result as cold comfort, since the damage
to its reputation has been done. The mechanical issues with its
pedals and floor mats, after all, remain as the root factor in what
eventually became a record recall of over 12 million vehicles around
the world and over 5 million here in the U.S. Toyota was eventually
fined $48.8 million for its treatment of the recalls. Toyota said
drivers in the recalled vehicles whose gas pedals become stuck
should firmly apply their brakes, drive the car to a safe location,
shut off the engine and contact the nearest Toyota dealer. Drivers
who experience the problem should not pump their brakes, Toyota
said. (ValdesDapena, 2010). "At least in that short term, it was not
easy for Toyota to erase the negative Image of its products," he
said. (Nakata, 2010)
TOYOTAS RESPONSE TO THE RECALL

11. Brand – Toyota , The Worlds NO. 1 brand is
severely mauled. The company loses its hard
earned pole position as the worlds largest car
maker to GM. And the most important , its
reputation for matchless quality was
undermined. Toyota was long percieved as the
‘KING OF QUALITY’ in the car industry. Such a
company is now being discarded on the same
plank-quality.The company registered a loss of
437 Billion YEN in 2010, which was the
automakers worst annual loss since its founding
in 1937
CONCLUSION

12. THANK YOU