Akio Toyoda – Acceleration Recalls Are Turning Point
Tim Esterdahl | Apr 21, 2014 | Comments 5
The record $1.2B fine Toyota recently paid to settle criminal probes into the unintended acceleration issue have a silver lining according to Toyota President Akio Toyoda. It is a turning point for them and the industry. Toyota consumers can expect more ticky-tacky recalls and a re-commitment to quality. Get ready for a new Toyota.
Toyota is paying a large fine to settle a criminal probe. This settlement will bring many changes to the company.
Recently, Toyota reps have been spouting a lot more about Quality, Reliability and Dependability (QRD) at various events. While Toyota is/was known for their quality, it hasn’t been the case over the last few years. Don’t take our word for it; Akio Toyoda acknowledged it and blamed the desire to grow quickly on a drop in quality. He is focused on changing course.
Like we told you, Toyota is reexamining its “Toyota Way” and plans to introduce more humans on the plant floor in a bid to increase quality. Also, Toyota is taking a different stance towards recalls.
“The criteria for recalls used to be compliance with laws or whether there are technical problems,” Toyoda said at a regular news conference of the Japan Automobile Manufacturers Association, of which he is chairman, according to Auto News. “Now, I think it has become whether the products can assure customers peace of mind.”
Apparently “peace of mind” is everything including the windshield wipers. Toyota announced a massive recall on April 9. 2014 to address a slew of problems in 6.4 million vehicles including defective windshield wipers. The recall also included a fix for faulty airbags (affecting 2009-10 Toyota Tacoma trucks among others). These massive recalls over a large variety of items seems to be the way of the future.
There was once a time when people made jokes about which vehicle got recalled the most. The number doesn’t seem relevant anymore, it is more about the severity.
The truth is recalls aren’t immediately considered bad anymore. There was once a time when manufactures were reluctant to issue them. That time has passed at Toyota. This could be the ongoing legacy of the unintended acceleration issue.
“I think it provided a turning point for us to go back to our basic philosophy of ‘customers come first,’” he said. “It is getting more and more important to handle recalls by seeing things from our customers’ point of view.”
Akio Toyoda made one other interesting statement during his remarks on March 20. For reference GM’s ignition switch recall was issued a few weeks earlier.
“Recalls are not about concealing problems we find. It’s about improving the product and coming up with countermeasures,” Toyoda said. “It’s a good thing from the long-term perspective of the automotive industry’s sustainable development.”
Did he take a shot at GM? Maybe.
Ultimately, Toyota will pay $1.2B to finally put the issue to bed. This won’t affect their bottom line that much. And while there are always going to be those who hold the handling of the recalls against Toyota, consumers are still buying their products in droves.
What do you think of the $1.2B settlement? Is it a turning point? Are recalls still viewed as a bad thing in your mind?
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Filed Under: Auto News
I think most people that know cars and trucks, know that recalls today are first and foremost strictly political.
Now that is not to say, that many companies will actually do a recall when it is a necessity for safety reasons. Conversably it is well known that many times a “recall” should have, could have, or even currently be issued when they are not – even with lives in danger.
In my opinion there are at least a dozen vehicles that the NHTSA should have under mandatory recall “now” for serious safety issues; but due to the political nature it will not happen until several people are killed.
In the realm of QRD, Tundra does get the highest marks “overall” in my book. Even so there is still room for considerable improvement.
The $1.2B settlement was merely a “tax” to Toyota for being too successful in the United States and I think most people recognize that one as well.
Is this a turning point for Toyota? I think it is from the standpoint they know “not” to be too successful and this is one of the major reasons they are holding back on doing the minor product changes in the Tundra line up. Those minor changes would allow for double or triple sales and a bigger plant(s). They know this is not a “free market”; hence they have to continually throttle back.
“Recalls” do not enter into my car buying decision. There are dozens of other factors considerably more important, with QRD high on the list and what a “dealer” (or manufacturer) will do to fix things that do not work correctly.
I too think Toyota has to get back to better quality control and better materials. I have found even on my new 2014 tundra small gaps (holes) in DC rear door panels where top meets the middle panels enough to fit 5-6 sheets of paper thru. The panels should be flush and NO gap or simple: make it ONE whole panel.
Same as the dash most closest long piece next to bottom of windshield in front. Mine is wavy down in middle, then up, then down again on passenger side vs. fully even (level) on driver’s side. Past week or two of cold nights that piece or windshield cowling is popping/tapping first 10 or so miles of driving.
It’s not so much though that Toyota quality is slipping in recent years although it has I believe. It is more about the other mfgs. like mazda and hyundai (among others) are building equal or above quality standards of Toyota’s.
Toyota has definitely gotten away from the quality of the 80’s, 90’s, and early 2000’s.
Their vehicles seem cheaper in many respects (interior). I believe the drivetrains are still as reliable as ever though.
I agree, Toyota has gone downhill in quality but I think this settlement will teach them why they need to get back to quality.
pretty much agree with what everyone said.
I’d add they better step it up as the others are improving….