What’s Happening? Toyota recall and their new publicity campaign: .
Toyota recall
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13-Sep-2014 -
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Transcript of Toyota recall
TOYOTA
TOYOTA RECALLFOR SUDDEN UNINTENDED ACCELERATION2009-2010Ryan McDonnell
HISTORYToyota Motor Sales began its U.S. operations in 1957
Initially offered unsuccessful Toyopet model:
Subsequent popular car models include:Corona sedan in 1965
Corolla in 1966
Camry in 1980
Prius (hybrid) in 1997
In addition, Toyota has developed a number of trucks, minivans, concept cars and the Lexus (1986) and Scion (2003) brands
MISSION STATEMENT:To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America."
VISION STATEMENT:"To be the most successful and respected car company in America."
SPECIFIC CHALLENGE:SUDDEN UNINTENDED ACCELERATION November 2009 4.2 million vehicles recalled due to floor mat entrapment
January 2010 2.3 million vehicles recalled due to faulty accelerator pedals(Of those, 2.1 million were already involved in the floor mat recall)
It was reported in February 2010 that the Toyota Company was aware of the problem for several months before putting the recall into effect
As many as 89 deaths were thought to be linked to unintended acceleration according to the NHTSA
SPECIFIC DETAILS OF THE PROBLEMSAccording to the NHTSA, the initial problem resulted when the accelerator pedal was depressed to, or almost to the floor, during sudden acceleration. It can become trapped in the fully open position by an out of position floor mat.The problem was later identified as a possible mechanical sticking of the accelerator pedal
As of February 2011, approximately 14 million cars worldwide have been involved in these recalls
SOLUTIONSToyotas remedies: Accelerator pedal reconfigured by the dealers to shorten it
Development of replacement pedals for the vehicles (available for some models in April 2010)
Offering owners who chose to have their pedals reconfigured would be offered the replacement pedal when it became available
Providing all-weather floor mats
Installation of a brake override system on certain models enabling the car to stop if both the brake and the accelerator were pushed simultaneously
Their reputation as the highest quality auto maker
Their loyal customer base as a result of the negative publicity
A significant amount of money in fines imposed by the government and from lawsuits brought by the victims or their families
A drop in the value of their stock as a result of the problem
WHAT TOYOTA STOOD TO LOSE
How Did the Public React? In January 2010, Toyota's U.S. sales dropped 16% and their stock surrendered $21 billion of value in a week
J.D. Power and Associates 2010 study: 19 percent of U.S. new car buyers surveyed avoided Toyota because of the bad reputation associated with the recall
The Transportation Department announced in April 2010 that it would propose fining Toyota $16.4 million in fines
Many lawsuits from victims and their families are yet to be settled
Despite a drop in sales, the company was still the number one retail seller for 2010
TOYOTAS RESPONSE Communication between the company and customers, dealers and the government will be improved
A Star Safety System and their Smart Stop Technology will be placed on all vehicles
A Design Quality Innovation Division was established and 1,000 of the companys finest engineers were transferred to that division to look at each component and each system to make sure that it is the most reliable and durable that it can be
The company expanded their development cycle by an additional four weeks so that they will have enough time to test the entire vehicle as a system
Congress requested that the NHTSA conduct an investigation of the Toyota acceleration problem
NHTSA enlisted NASA engineers to conduct the research
NHTSA also launched a study involving the National Academy of Sciences (NAS) to review unintended acceleration and electronic vehicle controls across the automotive industry GOVERNMENT INVESTIGATIONS
RESULTS OF THE investigation In February 2011, results of the study conducted by NASA engineers indicated no electronic-based cause for unintended high-speed acceleration in Toyotas
Sticking accelerator pedals and a design flaw that allows accelerator pedals to become trapped by floor mats are the only known causes for these unintended accelerations
The second study by the NAS study remains under way
RECOMMENDATIONS OF THE NHTSA By the end of 2011 to require: Brake override systems Standardized operation of keyless ignition system Data recorders in all passenger vehicles
Research on reliability & security of electronic control systems
Research on placement & design of accelerator & brake pedals and driver usage of these pedals
WHAT THE TOYOTA COMPANY& THE AUTOMOTIVE INDUSTRY LEARNED Toyota leadership - more involved in day to day operations
Deal with issues immediately
Safety training and control is of the highest priority
Customer feedback is extremely valuable
Continuously focus on the quality of the product