Devastating Blow To Toyota
Posted on 28 January 2010 by Stenberg-Tendys W.L. in Travel
According to the Wall Street Journal Toyota, the world leader of sales of vehicles, could be struck a crippling blow as it suspends eight of its most popular models in the U.S.
Toyota has been forced to make the decision to recall a further 2.3 million vehicles in the U.S.A, on top of the earlier 4.2 million vehicles, due to a potential accelerator problem. This is the fourth largest recall of vehicles.
The suspended models represent 57% of Toyota’s 2009 sales in the U.S. alone. The duration of the suspension is not clear. The fear is that the problem will cause a serious dent in Toyota’s long history of quality and safety.
It is believed the full impact of the recall may not be felt until current owners attempt to sell or trade in their existing Camry or Corolla vehicle. It could also cause a decline in residual value of cars coming off leases.
Toyota’s losses total $7.1 billion in the past two years. The company had hoped to return to profitability by April 2010. This goal will now not be met.
Millions of vehicles have been recalled by car manufacturers, over the years. Here is a list of only the top ten.
- Ford recalled 3.6 million vehicles in 1987, for a faulty fuel connection which caused engine compartment fires.
- GM recalled 3.6 million vehicles between 1999 to 2004 with corroded tailgate cables.
- Volkswagen recalled 3.7 million cars in 1972, due to windshield wipers working themselves loose and spinning off the vehicle.
- Honda recalled 3.7 million vehicles in 1997, because of cracked and disintegrating safety-belt release buttons, causing belts to either fail, or trap passengers in their cars.
- GM did a recall of 3.7 million vehicles in 1973, when stones disabled the steering assembly, causing loss of steering. The company agreed to install shields to prevent this from happening.
- In 1971 Ford Motors recalled 4.1 million vehicles, because the seatbelt shoulder harness tended to fray and detach from the metal holding it to the frame.
- GM recalled 5.8 million vehicles in 1981, as the suspension bolts in some models had a way of wiggling themselves loose, causing a loss of steering ability.
- GM recalled 6.7 million vehicles in 1971, as engine mounts began separating from frames forcing the throttle wide open.
- In 1996 Ford recalled 8.6 million vehicles, due to fires starting because of faulty ignition systems.
- The largest recall ever, of 12 million vehicles, was Ford’s recall in 2008, when the cruise-control switch had a nasty habit of catching fire, sometimes hours after the vehicle had been parked and turned off. Owners were slow to respond and by Sept 2008 5 million vehicles were still unrepaired.
The number of recalls does not always reflect on bad workmanship, but may represent the care for safety on the part of the manufacturer, as is seen in Ford’s 1971 recall over problematic seat belts, at a time when very few people were in fact using seat belts.
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