Monday, April 14, 2014

Toyota Recalls 6.4 million vehicles


Toyota is recalling 6.4 million vehicles globally over five separate issues. Some 3.5 million vehicles are being recalled to replace a spiral cable attached to the driver's side airbag that may be damaged when the steering wheel is turned and result in the airbag not being deployed in a crash. However, Toyota said it was not aware of any vehicle crashes, injuries or fatalities caused by the numerous conditions. This is not the first time a recall of similar magnitude is being done by Toyota. The latest recall, which affects 27 different models, is the fifth major one that the company has issued in recent months. Not surprisingly, these recalls have had negative effects on Toyota’s sales (revenue). However, recalls are not uncommon in the industry. For example, General Motors is in the middle of recalling millions of vehicles as well. Will Toyota once again weather the storm?

2 comments:

Anonymous said...

I would expect Toyota to make it through this recall, and still be successful. Recalls in the automobile industry are not uncommon. Though this recall could possibly impact an extremely large number of people, I think it says something about their organization on a positive note. The article mentions that thus far no one has been hurt due to these defects, so their recall could prevent further harm to consumers.

Unknown said...

Recalls are part of putting out such a complex mechanical product. We have seen plenty of recalls in the recent years. While they are not good for sales, they give the company a good opportunity to utilize their risk management and resolution team. As long as they handle it well, which it seems they are, they should come out shinning.