Posted on Friday, 29th January 2010 by admin
In light of Toyota Motor Corp. (TM) string of recalls recently, one can wonder what the large automaker is going to do in the U.S. to salvage its reputation. Toyota, as far as this writer can recall, has never seen a model-variety recall like this in its history. So much is wrong that the world’s largest automaker has halted production of eight separate vehicle models until it finds out just what is causing some of them to accelerate uncontrollably.
Five assembly lines that help build these models are being suspended as of Monday, and Toyota has sent messages to 1,200 U.S. dealers asking them to stop selling the models in question immediately. The models include some of Toyota’s most popular: RAV4, Corolla, Matrix, Avalon, Camry, Highlander and the Tundra pickup.
Not only were dealers told to stop selling new models, but to cease selling used versions of these models as well. Nothing like stopping production and the sale of seven models to put a dent in quarterly revenue. If Toyota had one of the most reliable reputations in the auto industry, this is tarnishing it quite badly. The seven models reflect 57% of Toyota’s sales in the U.S. last year.
First, there was a recall involving 4.3 million vehicles a few months ago due to door mats. Then, another recall involving 2.3 million vehicles. Now, production has been halted on models representing more than half of the sales for the world’s largest automaker.
Meanwhile Ford Motor (F) has roared in the U.S. in terms of sales, having come out of 2009 stronger than ever and mounting an advertising blitz and product initiatives that could pose serious competition from the domestic automaker to its Japanese rival in the American auto market.
In 2009, Toyota led all manufacturers selling automobiles in the U.S. in terms of recall amounts. That’s music to the ears of Ford, but increasingly disastrous to Toyota — once the king of reputation and perceived reliability.
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Tags: Problem Recalls, Recalls
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