Massive Recall May Cost Toyota A Lot

A massive recall was issued by Toyota Motor Corp. on particular Toyota models in relation to recently discovered defective gas pedals that have been blamed on a number of accidents. 

The massive recall Toyota announced came on Tuesday 26th of January as some 8 various sold Toyota models numbering above 2 million have been revealed to have sticking gas pedals that causes the car to accelerate uncontrollably.

The Toyota models under recall are:

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

The same gas pedal problem was not found on some Camry models like the Camry Hybrid.  Toyota’s other car models like the Yaris, Land Cruiser, Tacoma, Prius, etc. are still on sale and have no reported problems.

Because of this, Toyota has decided to put on hold the production of these specific models on six assembly plants throughout North America. 

A considerable loss on profit and a strain on its reputation is a certainty for Toyota Motors Corp.  In 2008, Toyota had outdone General Motors Co. of America in terms of sales, placing them in the number one spot.  However, due to this setback, the future of Toyota looks cold and it needs to do everything in its power to make it up to consumers if it wants to regain consumer trust again.

Toyota’s European market can also be subjected to a same recall because some parts of the gas pedals that are used in North America are also used on some Toyota models in Europe.  It is believed that only one supplier from the United States was the only source of the defective part.

The recall is also being linked to the previous incident regarding the auto giant that took place in Japan in 2006.  The incident involved the Japanese government conducting a criminal investigation on Toyota due to a number of accidents that took place and being traced to manufacturing problems.  Toyota staffs did not get charged 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.
Toyota has previously announced that its expected car sales forecast in North America will be more than 2 million cars and more than 8 million car sales worldwide for 2010.  Due to this recent embarrassment, however, a lot are doubtful that Toyota would meet that target.

The quality control predicament Toyota’s currently having is also being blamed on the growth plan which was organized by its previous president Katsuaki Watanabe.  Part of his growth stategy involved increased and rapid production which is said to have been a factor to 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.

There have already been information from numerous safety firms that more than 2,000 incidents of sudden acceleration concerning cars made by Toyota and at least six deaths were also reported. 

Other than the recall, Toyota is still the foremost manufacturer and seller of green technology in cars, namely the Prius.

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