Last post on Jan 31, 2010 at 11:48 AM
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Toyota Camry, Sedan
General Toyota Recall Questions/Comments: Accelerator Stuck Problem Recall
#289 of 447 Toyota Sales Halt Deals Blow to Image, Earnings
Jan 27, 2010 (5:00 pm)
Toyota Sales Halt Deals Blow to Image, Earnings
The problem with faulty gas pedals in Toyota cars and trucks is rare, experts say, and car owners are unlikely to experience any trouble. Toyota’s reputation is another matter.
Crisis management experts say just how far Toyota’s image tumbles depends on how quickly it can fix the problems and how well it communicates with hundreds of thousands of loyal customers.
They also say that Toyota’s growth has outpaced its management structure. The company, now the world’s largest automaker, didn’t have in place the mechanisms to identify and deal with the problems before they exploded into two giant recalls, factory shutdowns and instructions to dealers to stop selling eight models.
Toyota Motor Corp. rode a reputation for reliability to become the world’s top car maker. For more than 30 years, Toyota won customers and market share from General Motors Co., Chrysler Group LLC and Ford Motor Co. by building high-quality cars such as the midsize Camry and compact Corolla.
Americans, particularly baby boomers, frustrated with Detroit’s poor quality, fell in love with Toyotas because they rarely broke down. Last year, they bought more than 356,000 Camrys, making it the top-selling car in the U.S. The Corolla was second with almost 297,000 sales.
In short, drivers trusted Toyota. Now that trust is in danger.
Toyota said late Tuesday it would halt sales of some of its top-selling models, including Camry and Corolla, to fix gas pedals that could stick and cause unintended acceleration. Last week, Toyota issued a recall affecting 2.3 million vehicles.
Crisis managers say the issues with the pedals likely surfaced early on at lower levels of the organization, but no one wanted to deliver bad news to the boss.
“The story just kind of drags on. That’s just deadly for a reputation,”
said Brenda Wrigley, chair of the public relations department at Syracuse University’s S.I. Newhouse School of Public Communications. “It just spirals into a big situation that’s probably going to have long-term financial impact for the company.”
In March of 2007, Toyota started getting reports of gas pedals being slow to rise after being depressed for acceleration. Engineers fixed the problem in the Tundra pickup early in 2008.
But troubles persisted in other models, eventually leading to last week’s recall and the plans to suspend sales and shut down of six factories while Toyota tries to fix the problems.
The latest developments follow a recall of 4.2 million-vehicle in late
2009 over concerns that floor mats could bend across gas pedals, causing sudden acceleration.
The problems, Wrigley said, hit Toyota extra hard because it has touted quality for years to gain advantage over competitors.
“Quality was their differentiator and now it’s their Achilles heel,” she said.
#290 of 447 Re: What Actually is the Problem [smarty666]
Jan 27, 2010 (5:06 pm)
That is just it...they had to stop production and 65% of their sales because they just don't know. For now, consumers would be best to hold of on purchasing a Toyota if they were previously considering one; there may be more underlining issues that have yet to surface.
See the previous video.
#291 of 447 Re: Conspiracy Theory [spartanman2]
Jan 27, 2010 (5:09 pm)
are you kidding me? you cant see why halting sale and production of vehicles with a tendency to accelerate out of control on their own, might be a good idea? You think they should just keep pumping these death traps out and selling them? Even though toyota cant (or wont) say what the problem is with any certainty.Seriously ,any one who would go out today and buy a new camry and accelerate to their death tomorow,deserves a darwin award
#292 of 447 Re: Not As Sensational Anymore... [jofallon]
Jan 27, 2010 (5:13 pm)
"put it in neutral, and the engine went to 7300 RPM, then park - no change. I had to shut it off with the key to regain control. If this had happened on the highway, maybe I might not have been able to think of putting the car in neutral, when I was in the middle of a 65 MPH crowd of cars. "
What's happening in your brain? Did you have a lot of stress at work? Are there passengers in the car, is one of them your kid? How's traffic? Is it a relaxed drive or are you on the way to somewhere you would rather not be? I can see one motorist reacting with "What the %$#% is going on!!!", whereas another motorist reacts a lot calmer and simply says "Wow, this is a little odd" and then after being startled notices it's just a floor mat or, something electronic that Toyota really needs to fix.
You should be in control of the vehicle at all times, this INCLUDES abnormalities within the vehicle itself which of course, are a lot more rare but they DO happen and will continue to happen. It started with Model T's and I DOUBT it will magically disappear someday.
The most dangerous thing most Americans will do today is drive their vehicle and we treat it like we're just chewing gum....
Now if we can just get aliens to suck these idiots out of their cars that text while driving, but I guess that's another forum.
#293 of 447 Toyota Quality Image May Be ‘Finished’ as Sales, Output Halted
Jan 27, 2010 (5:15 pm)
(Bloomberg) -- Toyota Motor Corp.’s image as the highest-quality automaker may have been permanently tarnished after an accelerator-pedal defect halted sales of the models that account for more than half its U.S. deliveries.
Toyota’s “reputation for long-term quality is finished,” Maryann Keller, senior adviser at Casesa Shapiro Group LLC in New York, said today in an interview. “People aren’t going to buy Toyotas, period. It doesn’t matter which model. What’s happened is sufficient to keep people out of the stores.”
Losing that aura would undercut a decades-long campaign to promote its vehicles as safe and reliable, an effort that propelled Toyota to No. 2 in U.S. sales behind General Motors Co. and helped the Japanese company wrest the title of the world’s largest automaker from GM in 2008.
Toyota’s American depositary receipts fell the most in more than a year, and GM added incentives to woo owners of the 2.3 million U.S. autos including the top-selling Camry and Corolla being recalled to fix a flaw blamed for sudden acceleration. Late today, Toyota extended the recall to Europe.
U.S. sales of eight models are being suspended after last week’s recall, and five North American plants are being idled, Toyota said yesterday. That followed a 4.3 million-unit recall in 2009 for a related problem tied to floor mats.
Those moves compounded concern that quality may have slipped after a decade of North American expansion. The company’s 1,460 U.S. Toyota and Lexus dealers and hundreds of North American suppliers are awaiting word that engineers have found a solution for the pedal defect.
#294 of 447 Re: Toyota Quality Image May Be ‘Finished’ as Sales, Output Halted [revit]
Jan 27, 2010 (5:59 pm)
I'm not convinced Toyota is finished. J&J wasn't finished after Tylenol, Ford wasn't finished after Explorer. It depends more on how Toyota handles it and whether their cars continue to be less reair prone as they age than many competitor's cars. I'd be a bit nervous if I had the push button start, but as long as you have a key in case shifting to N is a problem, you've got a couple of quick remedies should UA occur. When this is resolved and your vehicle has the brake overriding the accelerator software like VW/Audi you'll probably end up with a safer car than most of its competitors. Meanwhile, once the matter is resolved and they are selling cars again, you may get the chance to buy a decent vehicle at a greater than usual bargain price - kind of like buying value stocks during a market decline.
#295 of 447 It might be time...
Jan 27, 2010 (6:01 pm)
For me to buy a Toyota Tacoma double cab...
Maybe a GOOD purchase deal...
And I certainly know how to DIY install a switch easily accessible to the driver to disable EFI.
Maybe even a relay actuated by brake light voltage with contacts to open the ECU throttle plate servomotor connection and substitute a voltage to drive the throttle plate closed.
#296 of 447 Re: Toyota Quality Image May Be ‘Finished’ as Sales, Output Halted [berri]
Jan 27, 2010 (6:05 pm)
Indeed, I don't think Toyota is "Finished", but their Quality Image may very well be. I also see the resale of their vehicles continuing to drop. The winners here are Ford and Hyundai.
#297 of 447 Re: Toyota Gas Pedals [isellhondas]
Jan 27, 2010 (6:08 pm)
Yes, nice to see a familiar "face" with a shout-out for Toyota. And you chose the right person to respond to!
#298 of 447 Something's fishy here...
Jan 27, 2010 (6:28 pm)
...about the federal government "forcing" Toyota to stop production.
The National Highway Traffic Safety Administration (NHTSA) can force a recall, but only after concluding a formal defect investigation, which can take months or sometimes years. Even then, a manufacturer can challenge the order in federal court. GM won the latest such challenge, some 25+ years ago, over the prematurely locking rear brakes on the 1980 X-cars. The vast majority of recalls are "voluntary" on the part of the manufacturers, sometimes after investigations or prodding by NHTSA.
I highly doubt NHTSA has the legal power to shut down production lines on a moment's notice. "Ask" the manufacturers to do so? Sure.