Is Toyota in For a Bumpy Road Ahead?
Toyota’s latest recall is potentially devastating for the car company. Toyota’s recall – one of the largest of its kind – is likely to change the way people think about the car company. So how bad will this be for Toyota? Looking back at other major recalls, Toyota may feel the heat for a long time.
In 2000, Ford was crushed during it’s “Exploder” incident where Explorers had faulty tread issues with its Firestone tires. That recall came at a time when Ford was on a roll, especially with its ultra successful SUV lineup. And while SUVs remained popular for a few years after the incident, Ford’s brand was damaged. A more devastating public “Death Penalty” occurred in the 1980s when Audi’s 5000 model had shifter-lock issues, which caused sudden acceleration issues. Audi took huge blow, causing an immediate >50% drop in sales . It took Audi nearly a decade to get back on track – mostly due to the introduction of its A4 model in the mid 90s. Audi is now back on track and “Audi 5000″ is merely an urban term.
Almost all of its US built models (no issue with Japanese-built Toyotas, including all of its Lexus or Scion vehicles) were affected. Toyota (like Ford) is blaming their supplier, CTS. As a “General contractor” Toyota is certainly to blame and I wonder if the tactic of handing the blame to suppliers is a wise one in the Information Age. Toyota models affected were: 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, Certain 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra, 2008-2010 Sequoia.
What do you think will happen to Toyota? Is this going to be another notorious debacle that crushes the company and hampers its “Tiger Woods” like reputation with the US car buying public? Did Toyota make a mistake by not taking the credit for the error?
8 Comments
I definitely think Toyota should have taken the blame and done so right at the beginning. The problem now is that they have brought the microscope onto this problem and with investigations starting up this could linger for awhile.
I think Toyota will suffer in the short term, but from an investment perspective this will be a buying opportunity for the long term.
Personally, i have never liked Toyota’s for several reasons and fail to see why anyone thinks there any better then a Ford or GM? Toyota’s have always been behind Ford & GM in interior comfort. The toyotas run good for the most part, but so does fords and buicks. GM & Ford trucks continue to lead the way after the problems with the Tundra that everyone touted as being so good. I know many people buy them cause there cheap, but not when you buy parts compared to GM. I like comfort and will continue buying Buicks, while you Toyota lovers are driving a tin can, sitting on a box and pillow. Thats what a Toyota has always felt like to me!
Toyota has known about their problems for several years. Safety first? No, Money first. We don’t buy foreign cars to help some other country prosper while U.S. goes belly-up. We don’t like the cheap look, feel and design of those cars. No Thanks, i’ll pass. We just bought a Corvette and love it. American Only Thank You very much!
as someone who grewup with gm products but now proudly works for toyota i wouldnt own an american made product if you paid me. this is a speedbump in toyota’s history books but what car company has had their share of problems, yes this is unfortunate but we will survive and be bigger and better than ever. if only the media would report the positive things that we have done to correct the problem maybe people would not have such negative feelings …
When people get hurt or killed, a company cannot afford to be secretive. Toyota has been tardy (some of the vehicles and problems date back years!!) and appears to be stone walling the discovery of root cause. The response from Toyota demonstrates a company that puts money first, with quality as a facade. Americans have been fooled into thinking only Japan delivers “quality” product. Typically, Toyota (or the other transplants) likes to take care of their problems without it being termed a “recall”. For the safety of not only Toyota car owners but all the rest of us driving American automobiles, hope Toyota finds (still not sure sudden acceleration is not an electronic or software problem) and fixes the problems quickly so innocent bystanders dont get hurt (tempted to get a bumper sticker telling “Toyota drivers please honk and pass me. Do not stay behind my car”!!
Toyota has had the pedal problems for well over 10 years now, however I am sure there are people like me that believed it was how they were driving. I had a brand new 1999 Solara that “died” in a 2001 car accident. The pedal stuck at times, but it never occurred to me that it could be a mfg issue. Toyota has covered this up for years, and I don’t think they are as concerned about their customers as they should be. Instead they are concerned with their “face” and the embarrassment of these issues.
Toyota, silently killing people for years.
With all the car websites I read, I find it odd that Toyota still gets “Best Buy” recommendations from many, hmmm?
I wonder if the NHSTA council asks Toyota’s President and CEO, Akio Toyoda if he flew over in a company jet when he comes to defend all of their recalls?
There are too many excuses for a company so beloved by Americans that they gladly send their U.S. Dollars to Toyota’s headquarters in Japan while our country goes broke, our economy is in shambles, and our unemployment is at record high’s.
Many Americans think our US auto workers are paid too much even though it has been proven they are within a few dollars per hour.
If Toyota is @1 in sales I wonder why they are asking for loans from their government, too?