Toyota and its Recalls

There are two main problems that Akio Toyoda admitted to having at Toyota. The first concern is about safety when he stated that the quality control system of the company itself is not perfect. When Toyota strives so fast, management seems to move away from their core philosophies which are safety first, quality second, and quantity third. Secondly, the company is slow to response to public concern about many errors happened to their cars. There are the problematic brakes, sticky gas pedal and issues with the electronic system. In his testimony in front of the Congress, Akio’s admission shows a positive attitude to resolve the issue, but lacks of a process indicating what the company would do to have a comprehensive solution.

Quality control is one last step of car manufacturing process to assure an auto is ready to go. This department makes sure that a car, in this particular case, is safe to run on the street. If there is a problem with the brake or other parts of a car, it should be discovered right here, within this final manufacturing step, and returned for inspection. Toyota somehow overlooks this step in the producing process and causes harm for its buyers. Consequently, the company suffers huge losses, has to issue recalls, and damages its brand.

If Toyota concerned more about safety than profit, they would issue the recall earlier. Consequently, fatal accidents happen and the press finds out there are many problems with Toyota’s cars that have been overlooked for years. Now, the company not only needs to fix their cars but also to deal with bad impacts on their brand image that will last for years.

Toyota should focus more on their quality control systems. The company might need to expense more to find out how to fix those errors with their cars, but is will prevent such problems from happening. Customers might think that Toyota cars they are driving now are not safe, but it also means the company will offer more reliable cars in the future. This is a good chance for Toyota to take good care of the North America market; however, many people still think it is somewhat late, as compared to Euro and China.

Alternatively, Toyota should consider taking back all defective cars to their firms, fixing it, testing it, and then returning it to customers. The company will spend a huge amount of investment, but it is a comprehensive review for them. Such action will show responsibilities and Toyota could gain back customers’ loyalty. Consequently, the media might say there are many other hidden problems with Toyota cars and they are trying to cover it; but, customers will think that Toyota is taking the issue seriously. Other markets might be affected by this huge recalls; however, if the company can handle it, bad impressions will be memories within years.

Within six months, Toyota should recall all problematic cars, fix them as fast as they can and show true empathy to all who suffered losses from their mistakes. Since the matter is global, this company should set up an action team to find out what is going wrong with these cars and to suggest needed solution. Meanwhile, Toyota should have a compensation plan to those who suffer substantial damages from their cars.

In the long run, Toyota should find out where the problems with their cars are. Whether it is from part suppliers or it is from assembling errors, they need to find a way to manage it. Lastly, Toyota needs to run an integrated marketing campaign about safety assurance when all problems are resolved.

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