Toyota recall crisis.

2. Questions
– How did a company that’s known for superior quality,
efficiency, and customer responsiveness, find itself in
such a mess?
– To what extent the “fate” of Toyota reflect the
challenges facing Japanese manufacturing industry
today?

3. Toyota Recall Crisis Timeline
– August 28, 2009: Crash of a Lexus in San Diego that killed four people. Cause
identified as pedal stuck under the floor mat
– Nov. 25th, 2009: Recall of 4 million vehicles by Toyota, for “unintended
acceleration problems”
– Jan. 26, 2010: Toyota temporarily suspends production of several of its vehicles
in the north America
– May 2010: Toyota pays $16.4 million fine to US regulators for being too slow to
recall vehicles with defective gas pedals

4. The Growing Pain
• Average 26 abrupt acceleration reported annually in 1999-2001 Camry and
Lexus ES model
• In 2002-2004 models, this number soared to 132, almost 400% higher.
• Oct. 2007, Toyota lost the automatic recommendation from Consumer
Reports
• Apr. 2008, Consumer Reports dropped 3 Toyota models from its 2008
recommendation list
• Jan. 2010, Consumer Reports withdraw 8 Toyota models from its
recommendation list due to the massive recall
• June 2010, Toyota dropped to 21st in J.D.Power’s IQS report

5. Causes of recall crisis
Pedal entrapment
Unintended acceleration
Anti lock brake software error

6. Pedal entrapment
• The first recall by Toyota is sept. 29 2009 to
correct possible of an incorrect driver’s side
floor mat into the food pedal, which could
cause a brake pedal entrapment as the brake
pedal stuck in to the floor mat.

8. Mechanical striking
• The second recall, is on jan 21 2010 was
begun after some crashes were caused do
to unintended acceleration resulted from
mechanical sticking of accelerator pedal
referred to as sticking accelerator pedal by
toyota

10. Hybrid anti-lock brake
software error
• The third error which put Toyota motors
into crisis is happened in its hybrid model
in February 2010 (ABS)

11. Region or
country
Hybrid
09.02.2010
Accelerate
pedals
21.1.2010
Slipping floor
mat 29.9.2009
Total recall
problems
Canada 8450 270000 400000 678450
china 75552 75552
Other Europe 44500 1530000 15745000
Japan 223000 223000
US 146550 2210000 5350000 7706550
UK 8500 180000 188500
other 5000 180000 18500
totals 436000 4445552 5750000 10631552

12. • About 2.1 millions vehicle are covered in
both floormat and pedal recalls
• Total vehicle recall approximate: 8.54
million

13. Solution
• Getting in touch with every customer

14. • Improving the communication channel with
the parent company

15. • Create and monitor database of repairs
and concerns
• Improve technology
• Bring back the customer
loyalty.

16. Thank You