Toyota recall

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TOYOTA RECALL FOR SUDDEN UNINTENDED ACCELERATION 2009-2010 Ryan McDonnell
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Toyota Recall

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