New York Times Editorial: Toyota's Recall Woes/In Move to Contain Crisis, Toyota Details Hybrid Recall

New York Times Editorial: Toyota's Recall Woes
Copyright by The New York Times
Published: February 8, 2010
http://www.nytimes.com/2010/02/09/opinion/09iht-edtoyota.html?ref=global


Toyota Motor Corp. is a global company that symbolizes Japan’s manufacturing might. But now, consumer confidence in the safety of Toyota cars, the very foundation of the company’s international competitiveness, is being badly shaken.

Problems with accelerator pedals in popular models in North American and European markets have forced the company to recall millions of vehicles worldwide and suspend production and sales of several models in the United States.

These developments have begun to make customers feel less secure about the quality and safety of Toyota’s products. The rapid succession of recalls has tarnished the carmaker’s image, which was cultivated through years of steady effort. The blame for Toyota’s safety woes should fall on the company’s management.

One factor behind the current predicament is Toyota’s rapid globalization, which has apparently seriously affected product quality. The gas pedal component in question is supplied by a U.S. maker. It appears Toyota failed to ensure the supplier’s products were free from design flaws and quality problems.

The way Toyota dealt with the recall crisis shows troubling signs of the overconfidence and complacency that have infected the manufacturer as it passed G.M. to become the world’s No. 1 automaker.

While the problem has become global, Toyota has not offered an adequate explanation to customers in Japan and other countries that have not been affected so far.

Some recent consumer surveys in the United States have shown Hyundai Motor Co. of South Korea outperforming Japanese makers in terms of product quality.

Japanese carmakers still hold the lead in development and commercialization of next-generation cars like hybrid and electric vehicles. With international competition getting fiercer by the day, however, there is no room for complacency.

As next-generation cars become more popular, there will be a major shakeout in the world car industry in which manufacturers with unsatisfactory safety and quality records face the danger of being weeded out.

In the 21st century, the world will likely go through turbulent periods as radical changes in market structure and transformative technological innovations take place simultaneously.

Under such circumstances, sensitivity to product safety and quality will be a vital factor for the competitiveness of all Japanese industries. This is a challenge not limited to the auto industry. Toyota’s current plight offers a cautionary tale that Japanese companies can only ignore at their peril.

Excerpted by the I.H.T. from The Asahi Shimbun.












In Move to Contain Crisis, Toyota Details Hybrid Recall
By HIROKO TABUCHI
Copyright by The New York Times
Published: February 9, 2010
http://www.nytimes.com/2010/02/10/business/global/10recall.html?ref=global-home


TOKYO — Toyota said Tuesday it would recall 437,000 of its 2010 flagship Prius hybrid and other gas-electric models worldwide to fix a glitch in the braking system, as the Japanese automaker moved to contain a crisis over defects in a range of its vehicles.

About 223,000 of the cars recalled are in Japan. Some 155,000 are in the United States and another 53,000 in Europe.

In addition to the standard 2010 Priuses, Toyota is recalling 270 plug-in Priuses, 28,000 Lexus HS250hs, and 11,000 Sai hybrids. Older Priuses are unaffected by the problem, Toyota has said.

Separately, Toyota also recalled 7,300 of its latest-model Camrys in the United States to fix a power steering pressure hose in the engine compartment that may be the incorrect length. This could cause a hole in the brake tube and deplete the braking fluid, interfering with braking, Toyota said in a statement.

Toyota’s president, Akio Toyoda, said Tuesday a software glitch was behind the failing brakes, and that the fix, which would be handled by dealers, would take about 40 minutes for each car. Toyota had found that on slippery or frozen roads, “the brakes falter for just split moment,” he said. “But if you make sure to push firmly down on the brakes, they will work without fail.”

“I apologize for the concern and inconvenience we have caused our customers,” he said. “We will redouble our commitment to quality as a lifeline of our company. Together, we will do everything to regain the confidence of our customers.”

In recent months, Toyota has recalled about eight million cars worldwide over gas pedals that could stick or become caught on floor mats. As more details have emerged about the problems, the automaker is facing questions over whether it routinely fixed potentially dangerous defects in new models without recalling those already on the road.

Mr. Toyoda said Tuesday that Toyota was not “perfect or infallible,” but that it had never lied to customers. “When we discover a defect, make defects, or receive advice from customers, we work hard to fix them and improve,” he said. “We do not allow cover-ups.”

Toyota executives acknowledged last week that the company had identified a flaw in the Prius’s braking system and corrected it for cars built since late January, which would not be part of the recall.

The 2010 Prius comes with an overhauled regenerative brake system, where energy from the wheels is used to help recharge the car’s battery, and also has an antilock brake system. The car relies on electronic systems that combine the regenerative braking system with conventional brake pads.

Shinichi Sasaki, Toyota’s quality chief, said the automaker had determined that a glitch occurs when the antilock brake system kicks in, which triggers a switch from the regenerative to conventional brakes.

Toyota said it had received two to three reports a month in Japan of brake problems in the latest-model Prius. But as the weather got colder and roads icier, the complaints had risen, leading to Toyota’s decision to issue a recall.

U.S. Transportation Secretary Ray LaHood welcomed Toyota’s move Tuesday and pledged to keep up the pressure on the Japanese automaker to heed U.S. safety concerns.

“Last Thursday, NHTSA opened a formal investigation of 2010 Toyota Prius hybrid vehicles in response to consumer complaints about braking difficulties, and today, Toyota has acknowledged a safety defect,” Mr. LaHood said in a statement, referring to the National Highway Traffic Safety Administration, which regulates auto safety in the United States.

“When I spoke with Toyota President Akio Toyoda last week, he assured me that his company takes U.S. safety concerns very seriously,” Mr. LaHood said. The U.S. Department of Transportation “will remain in constant communication with Toyota to hold them to that promise,” he said.

The Prius is the centerpiece of Toyota’s campaign to portray itself as more environmentally aware and progressive than its rivals. Toyota had promoted the cutting-edge design of the Prius brakes as a feature that gives the car a technological edge and better mileage. Toyota has sold 1.2 million Priuses worldwide since 1997. Last year, it was Toyota’s third-best-selling American car, behind the Camry and the Corolla.

Separately, several media agencies, including The Associated Press, reported Thursday that federal safety officials plan to review complaints about steering difficulties on the Toyota Corolla. The highway safety agency said it had received about 80 complaints from drivers of 2009 and 2010 Corollas saying that the cars could wander when they drive on the highway.