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By propens, February 4, 2010

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Toyota Recall Rises

By eyeswide, February 4, 2010

A huge recall was delivered by Toyota Motor Corp. on selected Toyota models in relation to recently found defective gas pedals that have been attributed on a number of accidents. 

The recall, which was announced January 26, 2010, came as some 8 various sold Toyota models totaling more than 2 million have been revealed to uncontrollably accelerate with no warning because of defective gas pedal parts.

Here are the list of Toyota models being recalled:

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

The same gas pedal problem was not found on some Camry models like the Camry Hybrid.  Other models such as the Yaris, Land Cruiser, Tacoma, Prius, etc. are still on sale and have no reported drawbacks.

In North America, six assembly plants have stopped production of these particular Toyota models. 

A major loss on profit and a strain on its reputation is a certainty for Toyota Motors Corp.  In 2008, Toyota had outdone General Motors Co. of America in terms of sales, giving them the number one spot.  However, because of this setback, the popular Japanese car manufacturer’s future sways on edge.

The likelihood of a similar recall happening to the European market could also come about since a few 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 related to the previous incident regarding the auto giant that took place in Japan in 2006.  The incident involved the Japanese government conducting a criminal investigation on Toyota due to 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.

After the recall, Toyota’s shares fell 4.3 percent.
Toyota has previously 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.  Then again, due to this recent embarrassment, that sales forecast could dramatically plummet or could even cost Toyota huge in their sales profit.

Toyota’s current setback related to its manufacturing is also being blamed on the growth strategy of Katsuaki Watanabe, the company’s previous president.  The growth strategy involved increased and speedy production which is said to have been a factor to not detecting defective gas pedals earlier.  After 4 years as thepresident of Toyota Watanabe was replaced by Akio Toyoda, the grandson of the founder of Toyota.

Information from different safety organizations stated that over 2,000 incidents of sudden acceleration concerning cars made by Toyota and at least six fatality were also reported. 

It is still unclear what kind of effect this would bring Toyota but the important thing for it is to render the right changes to its manufacturing and quality-control processes as soon as possible.

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