Videocrux - Toyota blames rapid global expansion for mass recall

#Videocrux - Toyota blames rapid global expansion for mass recall Toyota blames rapid global expansion for mass recall
Toyota has denied its rapid global expansion is to blame for the recall of millions of vehicles worldwide. In the US and Europe, its reputation has taken a huge blow but in Japan, Toyota's image still seems intact.
PR nightmare for world's largest car maker
Toyota Motor Corporation is a multinational corporation headquartered in Japan and the world's largest automaker by sales. It is also the largest in US sales. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. On May 8, 2009, Toyota reported a record annual net loss of US$4.4 billion, making it the latest automobile maker to be severely affected by the 2007-2010 financial crisis.
Rapid expansion lead to break and pedal issues
The Japanese company's sales are being battered in the U.S. after recalls of top-selling models to fix a gas pedal that can stick in the depressed position. The new Prius gas-electric hybrid, which went on sale last year, is not part of the recalls, which extend to Europe and China and cover nearly 4.5 million vehicles. Tatsuya Mizuno, analyst, Mizuno Credit Advisory says “The largest problem is that Toyota expanded production overseas very rapidly. That’s the reason why the company has these problems. "
Toyota sales drop 10 year low in US
Toyota Motor Corp.’s U.S. sales slid to a 10-year low in January as the company’s worst-ever recall crisis removed its most popular models from the market and made drivers wary. The decline snaps three months of advances and means the carmaker couldn’t take advantage of the U.S. auto market’s longest streak of gains since 2006. The Toyota City, Japan-based company, which has recalled more than 7.6 million vehicles worldwide for problems linked to unintended acceleration, faces U.S. congressional hearings and a rising number of product liability lawsuits. Toyota suspended U.S. sales of eight models on Jan. 26 while fixing an accelerator-pedal flaw, which meant customers couldn’t purchase models such as the Camry sedan and Corolla compact for the last five days of the month. Those were the top- selling cars in the U.S. last year.
"Made in Japan" still a benchmark for quality

Flash player