Recalls May Cost Toyota Big

Toyota, the biggest car manufacturer in the world, have lately recalled millions of its vehicles because of faulty accelerator pedals to prevent possible and further accidents. 

The recall, which was made known January 26, 2010, came as some eight assorted sold Toyota models numbering over 2 million have been discovered to have sticking gas pedals that causes the car to accelerate uncontrollably.

Here are the list of Toyota models being recalled:

Avalon (2005-2010)
Camry (2007-2010)
Corolla (2009-2010)
Highlander (2010)
Matrix (2009-2010)
RAV4 (2009-2010)
Sequoia (2008-2010)
Tundra (2007-2010)

A number of Camry models such as the Camry Hybrid has not been found to have the similar problem.  Toyota’s other car models like the Yaris, Land Cruiser, Tacoma, Prius, etc. have also passed quality inspection.

The listed Toyota models have also recently been suspended in their production from six assembly plants within North America. 

Toyota’s reputation as a dependable car manufacturer has been tarnished and this would also probably strain their profits for the first quarter of this year, if not the entire year.  In terms of sale, Toyota has sold more cars than any other car company in the world, making them number one.  However, due to this impediment, the famous Japanese car manufacturer’s future sways on edge.

The possibility of a similar recall happening to the European market could also happen since a few parts of the gas pedals that are used in North America are also used on some Toyota models in Europe.  It is said that only one supplier from the US manufactures the defective gas pedal part.

The recall is also being linked to the previous episode pertaining to the auto giant that took place in Japan in 2006.  The incident involved the Japanese government conducting a criminal investigation on Toyota because of several accidents that took place and being traced to manufacturing problems.  Charges were never filed against any of Toyota’s executives and employees but this incident has come back to haunt the company in a certain way.

Shares of Toyota in the Tokyo stock market were said to have fallen 4.3 per cent right after the recall.
The sales forecast Toyota previously announced has been estimated to exceed more than 2 million cars in US and Canada and over 8 million car sales worldwide for this year.  Due to this recent embarrassment, however, that sales forecast could dramatically go down or could even cost Toyota huge in their sales profit.

The quality control drawback Toyota’s presently having is also being blamed on the growth strategy of Katsuaki Watanabe, the company’s previous president.  One particular part of the strategy involved increased and speedy production which is said to have played a role not detecting defective gas pedals earlier.  After 4 years as thepresident of Toyota Watanabe was replaced by Akio Toyoda who is the grandson of the founder of Toyota.

Reports from different safety organizations stated that more than 2,000 incidents of sudden acceleration concerning cars made by Toyota and at least six deaths were also reported. 

Toyota’s image may have been stained because of this lapse but it is still a leader when it comes to green technology as it continually releases brand new models of the Prius.