At the start of 2010, Toyota still basked in its enviable reputation for manufacturing quality, durability, and high resale value. But headlines about accidents involving runaway Toyotas and Lexuses set off a series of recalls, an investigation by the U.S. Congress,and an apology by the head of the company. As a result of this dent to its reputation, Toyota's sales have been growing more slowly than competitors. Buyers who once were ardent Toyota loyalists have begun considering other brands—Ford and Hyundai in particular. But Toyota remains the world's largest automaker and its Camry is still the world's best-selling sedan.
Toyota's Travails
Toyota's Travails
A Congressional Investigation
Galvanized by a report of a Southern California accident where four people died in a runaway car as they frantically called 911 (family member Fe Niosco Lastrella, above far left, is shown testifying before Congress), federal officials began raising questions about unintended sudden acceleration problems with Toyota and Lexus models. In January, Toyota announced that it was recalling 2.3 million cars, pickups, and SUVs to fix potentially sticking accelerator pedals–which the company said was the source of the problem along with floor mats that jammed under the accelerator. The recalls involved the heart of Toyota's lineup, including 2010 models of the Camry, the RAV4 small SUVs, and Tundra pickups.
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Toyota's Travails
A Humbling Apology
Summoned for a Congressional hearing, Toyota President Akio Toyoda apologized, saying "I'm deeply sorry for any accidents Toyota drivers have suffered." But House members were not satisfied, noting that federal safety officials were investigating reports linking 34 deaths to safety defects in Toyota vehicles in the past decade. And they criticized the company for a report that had surfaced in which U.S. Toyota officials bragged of derailing a federal safety investigation. Toyoda reiterated the company's insistence–repeated to this day–that the cars' electronic control systems are not responsible for the sudden acceleration problems. Independent studies have shown that many accidents were attributable to driver error, not vehicle malfunctions.
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Toyota's Travails
A Hefty Fine
On April 6, the National Highway Traffic Safety Administration (NHSTA) fined Toyota $16.5 million for failing to quickly notify the government about problems with its accelerator pedals, shown at right. According to the NHTSA, Toyota waited four months before notifying it about the problem, while it was supposed to let the regulatory board know within five days of discovering an issue. The $16.5 million penalty was the largest civil fine ever issued by the NHTSA, and the maximum amount that it can impose. Toyota paid the fine without admitting wrongdoing.
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Toyota's Travails
Toyota Installs a New Brake System
In early October, Toyota announced it had completed recall fixes on five million vehicles and had also installed a brake override system in its new cars. The company said sudden acceleration complaints have dropped by 80 percent compared to April. But brakes weren't the only problem—in August, Toyota had recalled 1.3 million Corolla sedans and Matrix hatchbacks in the U.S. and Canada because of engine problems.
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Toyota's Travails
The Problems Continue
This week, Toyota said it's recalling 1.5 million Lexus, Avalon, and other models, including the RX330 at right, primarily in the U.S. and Japan, due to brake fluid and fuel pump issues. This brings the total number of cars and trucks recalled by Toyota in the past year to more than 10 million worldwide.
Image Courtesy Toyota