Toyota has climbed into the upper echelon of auto manufacturing and retailing by producing reliable vehicles. The company's cars and trucks, it seems, have designated positions on the top of customer satisfaction surveys.
However, a massive recall over concerns that accelerator
pedals might get stuck in go mode because of manufacturing and design issues
caused the company to halt sales and production of eight popular models representing
57 percent of Toyota's sales. The models affected include:
- 2005-2010 Avalon
- 2007-2010 Camry
- 2009-2010 Corolla
- 2010 Highlander
- 2009-2010 Matrix
- 2009-2010 RAV4,
- 2008-2010 Sequoia
- 2007-2010 Tundra
The company said its dealers should begin receiving parts late today or early tomorrow for the estimated 2.3 million vehicles involved in the recall. Dealerships are expected to extend service hours to complete repairs as quickly as possible.
"We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can -- as fast as we can -- to make things right. Stopping production is never an easy decision, but we are 100 percent confident it was the right decision. We know what's causing the sticking accelerator pedals, and we know what we have to do to fix it. We also know it is most important to fix this problem in the cars on the road," said Jim Lentz, president and chief operating officer at Toyota Motor Sales, in a press release.
The questions many are wondering is how the recall will affect Toyota and its competitors going forward.
"Toyota had been at the top of the heap in this industry, from word-of-mouth to ratings to quality to customer satisfaction. Toyota has skated along as the bulletproof car company. That moment has passed. They're not going to fall on their faces and go out of business, but their image has been permanently tarnished," Peter DeLorenzo, author of The United States of Toyota, told Advertising Age.
Art Spinella, head of CNW Market Research, told CNNMoney.com, "The fall was quicker than the rebound will be. That's for sure."
Michelle Krebs, senior analyst with Edmunds.com, said, "Ford and Hyundai were already gaining on [Toyota]. If you look at what Ford did in '09, they slashed the [market share] gap between Toyota and themselves by half. They may well pass them this year."
Discussion Questions: What is your assessment of how Toyota handled this recall? What will the company need to do for its brand moving forward? What independent action should Toyota dealers be taking?
- Toyota Announces Comprehensive Plan to Fix Accelerator Pedals on Recalled Vehicles and Ensure Customer Safety - Toyota Motor Sales U.S.A., Inc.
- Toyota's loss: Ford's and Hyundai's gain - CNNMoney.com
- Toyota to begin sticky pedal fix, restart production next week - The Detroit News
- Billion-Dollar Battle Ahead for Toyota to Rebound From Recall - AdAge.com