1. What Led to The Downfall of
The Toyota Brand-Name Worldwide?
s1170178 Yuya Ito

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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/