Recalls May Cost Toyota Big

Toyota, the largest car manufacturer in the world, have recently recalled millions of its cars due to faulty accelerator pedals to prevent potential and further accidents. 

The massive recall Toyota announced came on Tuesday 26th of January as some eight different sold Toyota models totaling over 2 million have been discovered to have sticking gas pedals that causes the car to accelerate non stop.

Here are the list of Toyota models being recalled:

Corolla (2009-2010)
RAV4 (2009-2010)
Matrix (2009-2010)
Avalon (2005-2010)
Camry (2007-2010)
Highlander (2010)
Tundra (2007-2010)
Sequoia (2008-2010)

Not every Camry models have the problem with sticking accelerator pedal, specifically Camry Hybrids.  Toyota’s other car models like the Yaris, Land Cruiser, Tacoma, Prius, etc. are deemed safe and will continue to be on sale.

The listed Toyota models have also recently been suspended in their production from six assembly plants in North America. 

A significant loss on profit and a strain on its reputation is a certainty for Toyota Motors Corp.  In 2008, Toyota had overtaken General Motors Co. of America in terms of sales, placing them in the number one spot.  With this unexpected turn of event, though, the popular Japanese car manufacturer’s future teeters on edge.

A possible recall may also take place at some point in time in Europe since several parts of the gas pedals that are used in North America are also used on some Toyota models in Europe.  It is believed that only one supplier from the United States made the defective gas pedal part.

The recall is also being connected to the previous event regarding the auto giant that happened in Japan in 2006.  The incident involved the Japanese government conducting a criminal investigation on Toyota because of a number of accidents that took place and were traced to manufacturing problems.  Charges were never filed against any of Toyota’s executives and staff but this incident has come back to haunt the company in some ways.

Shares of Toyota in the Tokyo stock market were said to have fallen 4.3 per cent right after the recall.
Toyota has earlier announced that its expected car sales forecast in North America will be over 2 million cars and more than 8 million car sales worldwide for this year.  However, due to this recent embarrassment, many are doubtful that Toyota would meet that target.

The crisis Toyota is now experiencing is also being blamed on the growth plan which was organized by its previous president Katsuaki Watanabe.  The growth strategy involved increased and fast production which is said to have been a factor to poor quality control.  In 2009, Watanabe was succeeded by the grandson of Toyota’s founder, Akio Toyoda.

There have already been information from numerous safety firms that more than 2,000 incidents of sudden acceleration involving cars made by Toyota and at least six casualties were also reported. 

Toyota’s image may have been tainted because of this lapse but it is still a leader when it comes to green technology as it constantly releases brand new models of the Prius.