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