Too Good To Be True: How Toyota's Success Caused Killer Decontenting

The ongoing kerfluffle over Toyota’s recall of over 2m vehicles for a gas pedal defect which (allegedly) caused unintended acceleration has caught much of the automotive media flat-footed. How could it be, many have wondered, that the automaker most associated in the US market with the concept of quality has slipped so badly? As TTAC’s Steve Lang recently discussed, Toyota has been on a decontenting binge since the mid-to-late-1990s, putting profit above the quality obsession that had defined its operations up to that point. As a result, the current generation of decontented Toyotas and accompanying quality issues and recalls can be seen as the culmination of a long-term trend. But why did that transition take place? Though it’s easy to blame greed and mismanagement for the decline in Toyota’s quality, the decline in standards was actually a natural progression of Toyota’s constantly-evolving, efficiency-obsessed production system.

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  • Lorenzo The unspoken killer is that batteries can't be repaired after a fender-bender and the cars are totaled by insurance companies. Very quickly, insurance premiums will be bigger than the the monthly payment, killing all sales. People will be snapping up all the clunkers Tim Healey can find.
  • Lorenzo Massachusetts - with the start/finish line at the tip of Cape Cod.
  • RHD Welcome to TTAH/K, also known as TTAUC (The truth about used cars). There is a hell of a lot of interesting auto news that does not make it to this website.
  • Jkross22 EV makers are hosed. How much bigger is the EV market right now than it already is? Tesla is holding all the cards... existing customer base, no dealers to contend with, largest EV fleet and the only one with a reliable (although more crowded) charging network when you're on the road. They're also the most agile with pricing. I have no idea what BMW, Audi, H/K and Merc are thinking and their sales reflect that. Tesla isn't for me, but I see the appeal. They are the EV for people who really just want a Tesla, which is most EV customers. Rivian and Polestar and Lucid are all in trouble. They'll likely have to be acquired to survive. They probably know it too.
  • Lorenzo The Renaissance Center was spearheaded by Henry Ford II to revitalize the Detroit waterfront. The round towers were a huge mistake, with inefficient floorplans. The space is largely unusable, and rental agents were having trouble renting it out.GM didn't know that, or do research, when they bought it. They just wanted to steal thunder from Ford by making it their new headquarters. Since they now own it, GM will need to tear down the "silver silos" as un-rentable, and take a financial bath.Somewhere, the ghost of Alfred P. Sloan is weeping.