Toyota Motor Company: Losing its Quality Edge?

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Case Details:

Case Code : OPER095
Case Length : 29 Pages
Period : 2006-2010
Organization : Toyota Motor Corporation
Pub Date : 2010
Teaching Note :Not Available
Countries : Japan; Global
Industry : Automotive

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

Earlier in November 2009 too, the company had recalled 4.2 million cars in the US to rectify accelerator pedals which were getting lodged under the floor mats of the vehicles. Subsequently on February 1, 2010, Toyota suspended the sales of eight of its popular car models involved in the recall and discontinued production at six of its North American car-assembly plants in response to growing customer concerns. The eight car models represented 57% of Toyota's sales in the US in 2009.5 Talking about the recalls, Japanese Trade Minister Masayuki Naoshima said, "The scale of the recalls is huge. The situation is serious. It points to the possible dangers a global economy can bring.

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I would like Toyota to respond properly to secure consumer confidence."6 Toyota, an iconic car maker founded in 1937, was known for its innovations, quality, and global competitiveness. Its business segments mainly included automotive operations, financial services operations, and other business operations.7 Automotive operations accounted for 89% of Toyota's total revenues in 2008...

Excerpts >>

5] Kate Linebaugh and Norihiko Shirouzu, "Toyota Halts Sales over Safety Issue,", January 26, 2010.

6] Yuri Kageyama, "Toyota Recalls Show Price of too Rapid Growth,", January 28, 2010.

7] Other business operations of Toyota include intelligent transport systems, IT and telecommunications, housing, motorboat manufacturing, and biotechnology and afforestation businesses.

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