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Toyota recall crisis.
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The Toyota Recall crisis
VijeeshMohan Sharath G. Pillai
Kannoth Shilpa Lesely Abraham
Jithin C
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?
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
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
Causes of recall crisis
Pedal entrapmentUnintended acceleration Anti lock brake software error
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.
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
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)
Region or country
Hybrid09.02.2010
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
• About 2.1 millions vehicle are covered in both floormat and pedal recalls
• Total vehicle recall approximate: 8.54 million
Solution
• Getting in touch with every customer
• Improving the communication channel with the parent company
• Create and monitor database of repairs and concerns
• Improve technology• Bring back the customer
loyalty.
Thank You