Toyota recalls essay

Toyota RecallsHigh precision and accuracy is a requirement in engineering, which is undoubtedly important in conceiving, producing, and assembling of motor vehicles. Any deviation from the original design can have far reaching effects as evidenced by the recall of the Toyota vehicles from the different parts of the world. These vehicles where marked with many technological problems like the steering, braking and acceleration due to pedals sticking on floor mat (BBC, 2010). It is in this interest therefore this paper is written.

It focuses on the effects of recalling vehicles to the Toyota Company as a whole. Toyota Company is one of the biggest automotive companies in the world with one of the best brands characterized by affordability, quality, and reliability. The recall of over 9 million vehicles due to various avoidable mistakes has been in the limelight of the public domain and has to some extend damaged the company’s’ reputation. Although the company has pledged guilty and unconsciousness of their mistakes by recalling the vehicles to fix the problems, a good number of the public, especially from countries such as the US still perceives this brand as unreliable and unsafe (Reuters, 2010).  The decrease in quality of the Toyota vehicles has accelerated the expansion of companies which produce counter fate spare parts for the Toyota vehicles.

The recall of these vehicles puts Toyota at a risk of losing at least $2 billion (Kubo, & Crawley, 2010). The lose will be inclusive of the extra cost of shipping the vehicles back and the cost of  fixing mistakes which could have been avoided. This will also affect the normal flow of work, material handling in the production centers and increases the cost of inventory. The negative perception of customers to the Toyota vehicles will automatically decrease their market shares in the affected countries and this means a decrease in the number of sales hence in general, the company will face a grate loss (Gallagher, 2010). Still to be cited at this stage of the discussion is the fact that since the recall news hit the fore front of the public domain, the stock prices of the Toyota Company dropped amicably with an approximate of 20% in the Tokyo stock exchange (Carey, 2010). This has given Toyota competitors an opportunity to dig into the Toyota market. The Toyota global vehicle recall will not only amount to losses for the company but will have the effects carried forward to the global society amounting to a chain of reaction. Top on the list of these reactions will be loss of jobs in all aspects of the company.

This giant automotive company has overseas production units in over 27 countries in the world with an approximated 300, 000 employees in the global world (Carey, 2010). The recalls of the vehicle have put a lot of worry to the future of these employees both in Japan and overseas. This is because the decrease in sells will automatically amount to a decrease in the number of workers. However, Toyota has come up with strategies, which will enable the company to maintain its market share against its competitors in the near future.

This includes coming up with new terms of discounts, offering free regular services like changing of oil and extending their vehicles warranty programs particularly for the power train (Reuters, 2010). In conclusion therefore, the recall of the Toyota vehicles from the global world had social and economical consequences not only to the company in Japan and overseas but also to the global world community. Works citedBBC. (2010). Toyota Recalls ‘ Up to 1. 8m’ Cars.

Retrieved August 8, 2010, from http://news. bbc. co. uk/2/hi/business/8487984. stmCarey, R.

(2010). Will Toyota Recall Severely Impact Customers Satisfaction? Retrieved August 8, 2010, from http://www. qualitydigest. com/inside/quality-insider-news/will-toyotas-recall-severely-impact-customer-satisfaction. htmlGallagher, C.

(2010). Silence from the Top as Toyota Recall Crisis Deepens. Retrieved August 8, 2010, from http://www. reuters. com/article/idUSTOE60S0A720100129Kubo, N., & Crawley, J. (2010).

WRAPUP 2-US Congress Probes Toyota Recalls as Impact Spreads. Retrieved August 8, 2010, from http://www. reuters. com/article/idUSSGE60S03120100129Reuters. (2010). Honda Sets Own Recall as Toyota Details Action. Retrieved August 8, 2010, from http://www. reuters. com/article/idUSTRE60R7GB20100129