Not for faint-hearted

Yesterday Mr. Toyoda, the President of Toyota Motor Company, appeared in front of the US Congress committee and apologized for the road accident and other mishaps that are attributed to the defects in the brakes and gas pedals of Toyota. He assured these issues are being taken care of.

Toyota has been selling millions of cars internationally and had no publically reported quality issues that I recall of. The current issue is indeed a significant quality lapse and Toyota brand and financials would be severely hurt by the time it will recover from this mess. However, I think this is a one-off glitch in the car manufacturers’ long history of making reliable quality cars. They will overcome this issue, diffuse the ongoing media hype and would again become a key player in the global car industry. Read more of this post

Big Isn’t Always Beautiful

2009 – Toyota became the biggest car manufacturer in the world surpassing General Motors.

2010 – Toyota recalls 8 million cars worldwide to fix problems with brakes, accelerators and steering.

In their quest to be the biggest car manufacturers, it seems Toyota (TMC) lost sight of quality and focused on quantity producing more but defective cars, consequently tarnishing their image for “Toyota’s Reliability”. It will take the TMC a while, huge resources and investment to re-gain their market position. Earlier, the GM was the biggest car manufacturer for years and became so bloated that they lost touch with their customers and lost their loyalty, got consumer perception for low quality, focused on push sales and short-term gains and could not stay profitable. Result – the US government had to intervene to rescue the GM from bankruptcy but not before major layoffs and closing of several plants. Read more of this post

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