Toyota: The Sticky Pedals issue Part 3

As a result of Toyota’s decision of working with suppliers who had no experience nor understanding of Toyota’s culture and values. The firm had the face the biggest concern in its history, recalling about 8 million vehicle amount as much as its annual production.

Problem it is facing today has nothing to do with Toyota’s own factories but root of this cause originated from its level 2 supplier technically termed as Tier-2 suppliers who were responsible for the throttle paddle which Toyota has examined as the reason
for the recall.

Although problem does not originated from Toyota’s factories but still it affected its image. It occurred under company’s administration and Toyota is the one who is facing all the loss. 

The company should have had their senior engineers with the years and years of experience to be in control of such a situation. Such representatives are technically called as ‘’Sensei ‘’ who could have monitored the whole process and might have spotted the
issue in light of their huge experience.

Despite all this Toyota somehow made the decision to stick with its supplier and trusted them to work and meet the standards, it wanted and had to face the consequence.

Toyota had to bear a lot of loss because of the matter and despite the fact that it sit he largest car manufacturer, its market share dropped down and competitors like General Motors and Ford benefitted from the situation.

Ford February sales were more than 43 percent for the first time Ford has occurred against the GM’s out monthly sales for many years. Consumer Reports (CR) presented in April 2008, three different models of Toyota’s recommended list of the 2008 crash. On
the other hand, 100% of Honda motor vehicles Consumer Reports recommended list, recommended that the share of Toyota rose 73%, compared to 85% last year, Toyota ranks as a reliable car company in accordance with a third CR report.

Toyota is a leader not only in car manufacturing but it has contributed a lot towards production.

Toyota has pressurised its suppliers to focus on quantity and ignored the key reason of their success which has always been quality and as a result couldn’t cope op with their standards.

Toyota rapid growth, strained the resources of engineering and centralized structure put pressure on Toyota to create products. A Toyota recall and quality problem has become an example and lesson for every automobile industry.

The firm should be working more on quality than on quantity to improve their image and to regain the strength and reputation they were known for not only in Japan or in Asia but in whole world and the world know they can.

—Concluded

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Posted by Ahmed Babar on Jan 10 2012. Filed under Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry