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Toyota`s Reputation Crashes
By Geoff Cummings
A good reputation can take a long time to build up, but it can turn bad in a very short time. And that`s certainly been the case over recent weeks with the situation with one of the world`s biggest car manufacturers-Toyota of Japan. Japanese cars have, for decades, had an excellent reputation for good workmanship, reliability, quality, and for lasting a long time. And at the forefront has been Toyota, with its headquarters located at Toyota City, where 25% of the families of Toyota`s workers live. Toyota reflects Japan's emergence from the ruins of World War II into one of the world's great powers. Unfortunately, though, events concerning first of all some of the Toyota models` accelerators, then more recently the braking systems, have knocked the confidence of the car buying public. Over 8 million cars have been recalled due to some problems with the accelerator sticking which has cost £1.3 billion. And now there is the scare about the world's bestselling hybrid car, the Prius. Complaints about the car`s braking system under certain conditions have resulted in yet more recalls. Just in Japan alone it`s expected that Toyota will recall almost a quarter of a million of its hybrid vehicles. Apart from the Prius they include the Lexus HS250h sedan, and the Sai, which is sold only in Japan. Overall around half a million hybrid cars worldwide are to be recalled for a fix to the software which affects the braking system. How has the company been affected by all of this? Toyota`s stocks have fallen by around 20% wiping out many millions of pounds off its value. The recalls will cost many more millions. And how can the loss in confidence by the buying public be quantified? Think of it. If you were thinking now of purchasing a new car, and there were a number of options available, would you be likely to buy a Toyota? The reputation of Toyota has been very severely dented, and it could be a long time until that reputation is at the levels it once was. |
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I agree, Toyota may never recover, these failings should have been spotted a long time ago, people will lose faith in an already cut-throat market.
CONTRIBUTOR'S REPLY
Even the Japanese government has been critical of the company. I think part of the problem is that they have taken so long to even acknowledge there is an issue with the accelerators and brakes on some of their models, and now Toyota has come across to many as not being totally honest.
I'm guessing Toyota can recover. It may take a while, but they're hardly the first company to face public disgrace and recover from it. Of course, as the owner of a well loved old Toyota, I'm probably biased. 
CONTRIBUTOR'S REPLY
Shareholders will take a hit with the loss of confidence in the company. As you say though, if they can get back on track and resolve the problems I`m sure over time their reputation will get back to where it once was.
It is a struggle for Toyota,Geoff. However, the present owners will also suffer with lower trade in values, until this situation is corrected. Subcontracting of parts manufacturing can mean less control by the parent company. They are looking at profit not customer loyality.
Thanks for sharing.
Best wishes.
Frederick
CONTRIBUTOR'S REPLY
True, Frederick, customers seem to be taking a back seat here.
Add to the list of bad carpets, faulty accelerators, brakes, and now steering on the new Corolla model. thousands of recalls, and nothing to do with tyres... LOL
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This intel was contributed by odls
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May, 2012
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