#recall

The release of A Road Forward: The Report of the Toyota North American Quality Advisory Panel [ PDF], probably raised a few eyebrows around the industry this week, particularly at the headquarters of the Alliance of Automobile Manufacturers in Washington D.C… but not for any obvious reason. The report’s findings about Toyota’s internal reforms in the wake of last year’s recall scandal aren’t particularly mind-bending, and are well summarized in an introductory passage

First, the Panel believes Toyota needs to continue to adjust its balance between global and local control giving weight to local control in order to improve its communication and speed in responding to quality and safety issues. Second, the Panel believes that Toyota needs to ensure that it listens and responds as positively to negative external feedback as it does to negative internal feedback. Third, the Panel believes that Toyota must persist in more clearly distinguishing safety from quality and continue its efforts to enhance its safety practices and procedures.

In addition to identifying specific areas for improvement, the report places a heavy emphasis on “the leadership of Toyota’s top executives as they navigate the road forward, as well as the company’s leadership in the industry” as a way to avoid the traps it fell into prior to the recall scandal. And this emphasis on leadership could have some interesting effects…

TTAC LiveChat With The Authors Of “Toyota Under Fire”

Has it really been a year since the United States tore itself apart in a frenzy over the possibility that Toyota’s might suddenly accelerate out of control? So intense was the furor over Toyota’s alleged misdeeds, that it seems like the whole scandal occurred only yesterday, yet the brevity of the crisis already gives it the distance of ancient history. Now, just a year after the height of the hysteria, the first major book on the subject has arrived, casting a clear light on the events of the recall. Serving as a history of the scandal, a case study in Toyota’s responses to it, and a cutting critique of the media’s coverage of the recall, Toyota Under Fire is a powerful reminder of the many lessons that emerged from one of the most intense and unexpected automotive industry events in recent years.

Over the weekend, Chinadaily [via CarNewsChina] reported that China’s General Administration of Quality Supervision, Inspection and Quarantine had halted imports of Jeep Wranglers due to what was reported as

fires [caused by] a problem in the vehicles’ automatic transmission and related systems.

And though for some this story’s value may begin and end with the ironic humor value of China recalling unsafe American products, there’s more to this than meets the eye. As it turns out, NHTSA has investigated a suspiciously similar transmission-related fire risk in Wranglers, and made Chrysler fix it. What’s not clear is why China-bound Jeeps don’t appear to have received the upgrade that US regulators required for American-market sales.

The AP [via Google] reports that Toyota’s board has voted to pay $32.4m on top of the $16.4 it already paid the US Department of Transportation in connection with its handling of several recalls. The first involved Toyota’s handling of gas-pedal entrapment by floormats in its vehicles that were part of the Unintended Acceleration scandal earlier this year. The other involved steering rods in certain 4Runners and T-100 pickups that were not recalled despite a 2004 Japanese market recall for the same parts on Hilux pickups.

Welcome to Tinfoil Time. A public service for paranoids and their enemies. When the NHTSA went after Toyota for their runaway cars, some people (me, included) saw this as a transparent attempt to undermine Toyota in order to make GM and Chrysler (A.K.A new arms of the US government) more attractive both in terms of purchasing their products and the IPO’s. But now that the circus is leaving town, is the NHTSA looking for a new victim? Whilst searching the net, I saw (part of) an article (sub) which mentions how Ford’s North American market share is on the rise. Sure, Toyota’s market share in the U.S. dropped by 1.5 percent compared to September 2009. But GM did not pick up those sales. They lost 2.8 percent. The winners were Ford (+ 1.4 percent), and Chrysler (+2.1 percent).I also remember a poll that was taken which claimed that how 54 percent of people were less likely to buy a GM car because of their bailout. Rising sales at Ford and bad will towards GM? I’ve seen this scenario before! The next stage is now the NHTSA will tell us to stop driving our Fords. Trouble is, Ford doesn’t have any recalls of recent. So what can the NHTSA do? You recycle a recall.

Ray LaHood is great, isn’t he? When that big nasty corporation, Toyota, was building those awful machines that were murdering people and their children in their sleep in the middle of the night, he urged everyone to “ stop driving your Toyotas” ( Ford also had a problem with unintended acceleration, but LaHood couldn’t go after them with the same vigor as he was busy dealing holding “Toyota’s feet to the fire” at the time). His useful piece of advice led to a calm and controlled recall and gave people the courage to come forward and give their horror stories of how their Toyotas went all “HAL” on them. Then came allegations that Ray and the NHTSA were suppressing a report that confirmed it wasn’t the cars but driver error. Well, Ray knew he was being stabbed in the back but you can’t keep a good man quiet for long…

Do you remember when Saturn made a last ditch attempt to bring customers back to their showrooms? It asked us to “Rethink” Saturn. Whatever our perception was of them, we almost certainly had it wrong and we had to check them out once more. Ford did a similar thing with “Have you driven a Ford lately?” It’s quite a clever strategy, convince the customer that they had it wrong about your product and invite them to try them again. Well, Toyota seems to trying a similar tactic in order to woo customers back and polish up their corporate image. Now at this point you’re expecting me to unveil some hokey advert which asks us “Try Toyota” (if Toyota is reading this, give me a call and we can work out a licensing fee for my ad slogan). Wrong. It’s not their products. They are fine.

Toyota asks us to rethink the meaning of recall.

China’s quality regulator has ordered the recall of 875 imported C30 vehicles. What’s wrong with the car? Nothing.

Did someone say that the Chinese are good at – how shall we put it – warming up to foreign ideas? Ray LaHood’s revenue-generating ideas must have impressed the hell out of the Chinese. I can just imagine the discussion: “Come on, the Americans raise the penalty from $16.4m to $200m, so why can’t we? It’s in the name of safety. Ni dong bu dong?” Now therefore, “the Chinese government is set to impose much stricter penalties on automakers if they hide problems with their vehicles to avoid recalls,” reports The Nikkei [sub].

So far, automakers got away with a financial slap on the wrist. Under current rules, introduced in 2004, covering up automotive defects can cost a pittance of $4430, max, no matter how many cars are affected. Under newly proposed rules, hiding a defect could downright wipe out an automaker in China.