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Toyota: There Are Always Limits to Growth

Toyota is discovering that constraints to growth always exist.

Stewart Anderson
Wed, 02/03/2010 - 05:30
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The latest Toyota recall, announced just last week, has sent analysts and pundits alike scurrying for explanations about what is wrong with one of the world’s largest automakers. The recall, ostensibly for sticking accelerator pedals, affects some 2.3 million vehicles in Canada and the United States and comes just months after the automaker issued a recall for some 4.3 million vehicles regarding concerns that some floor mats could entrap accelerator pedals.1 The recalls have prompted widespread comment and criticism of the automaker, with many commentators suggesting that the company is in serious decline with respect to the quality and reliability of its products.

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The Toyota recalls took place amidst an upsurge in auto industry recalls for 2009. The Detroit Free Press reported on Dec. 30, that there were 15.2 million units recalled by the industry in 2009, and that Toyota led the pack with 4.87 million cars and trucks recalled, mainly due to the accelerator pedal issue. The 15.2 million units recalled by the industry in 2009 is nearly double the 8.6 million units recalled in 2008.2

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Comments

Submitted by Nebula on Wed, 02/03/2010 - 09:36

Wrong Numbers

The revenue data on the chart has got to be way off. 25 million yen is only about $275,000 U.S. Currently $1US = 91 yen.

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Submitted by Quality Digest on Wed, 02/03/2010 - 11:49

In reply to Wrong Numbers by Nebula

Fixed Chart

Good catch Nebula. That chart has been replaced.

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Submitted by d.sewell-bruyn… on Wed, 02/03/2010 - 12:46

Toyota Recall

Although it may seem nit-picky, I remember a Toyota recall that involved their pick-ups. If your pick-up was one of the affected vehicles, you were issued a check on the spot and your truck was not returned to you. I don't know if the amount of the check covered whatever you may have owed Toyota Motor Credit.

I personally have lost my faith in the Toyota brand, because I find no more comfort in their latest analysis of the problem (friction?) as I did in the floor-mat theory (bumpkis). It's all very reminiscent of the Ford Explorer fiasco.

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Submitted by nativeamrc on Wed, 02/03/2010 - 14:02

You're right on the mark!

It sickens me as a Quality Professional to have to listen to all the "experts" in the media talk about the demise of Toyota. Slow response? Letting things go to long? Poppycock! They're response has been no slower than other companies of their size or complexity in my humble experience of 30 years in American manufacturing. The auto industry has grown leaps and bounds in terms of quality and reliability because of the likes of Toyota, Mercedes, Volvo, and others. I too believe that Toyota will rebound and no doubt learn some valuable lessons because that is their culture!

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