BUSINESS AND ITS ENVIROMENT NYIT-FALL2011 DR.

FAIZE ZOUBI BY: ASMA RAMADAN , AND, SAMYA AL-AKHDAR

introducing

Toyota Safety Crisis IN US

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TOYOTA has been plagued by series of safety issues spanning from:

Brakes

Accelerator Pedals

Floor Mat

TOYOTA SAFETY CRISIS EXPLODED: WHEN CUSTOMERS COMPLAINS ATTRACT THE MEDIA AND THE ATTENTION OF NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) WHICH PROMPTED TOYOTA TO RECALL ITS CARS.

Toyota Crisis Reason

THE SAFETY AGENCY IN US ALSO INVOLVED TO DEAL WITH THE CRISIS AND BEGAN ITS INVESTIGATION.

Toyota Crisis Reason

AN INVESTIGATION BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS PROMPTED TOYOTA TO RECALL ABOUT 82,000 HYBRID S.U.V.S FOR A STALLING PROBLEM.

The recall covers about 45,500 Highlander hybrids and 36,700 Lexus RX 400h models from the 2006-7 model years for breaks ,accelerator ,pedals and floor mat

Toyota Crisis Reason

Customers: a Consumer Advisory: NHTSA's Advice to Toyota Customers

Toyota consumers should check the list of recalled vehicles below and be sure to pay close attention to their vehicles. If you are experiencing any problems with your Toyota vehicle, park your vehicle in a safe place and immediately call your Toyota dealer or Toyotas North American headquarters at 1-800-331-4331.
CONSUMERS SHOULD BE AWARE OF THE FOLLOWING ISSUES WITH TOYOTA VEHICLES: 1- Gas Pedal Entrapment by Floor----- take out the driver-side floor mat of the following Toyota, Lexus, and Pontiac vehicles: -After removing the driver-side floor mats, consumers should wait for a letter from Toyota instructing them to go to their dealers for the remedy. More than four million vehicles have been recalled for this safety issue.

Customers: a Consumer Advisory: NHTSA's Advice to Toyota Customers

2- Brake Issues involving Prius and Camry Vehicles Toyota is also recalling 2010 Prius Hybrids and Lexus HS 250h vehicles for braking safety issues involving momentary loss of braking power. Some 2010 Camrys prone to brake fluid leaks are also been recalled. Drivers of these vehicles experiencing any braking problems should park their cars and contact their their local Toyota dealer

3-Mats Sticky Gas Pedals Some 2.3 million Toyota vehicles are being recalled for problems involving gas pedals that are hard to depress, slow to return to the closed position or remain partially depressed. Toyota,

Toyota Motor Corp. Will Pay $32.425 Million in Civil Penalties as Result of Two Department of Transportation Investigations In February 2010, NHTSA launched an investigation to determine when Toyota first learned of the pedal entrapment defect and whether the company notified NHTSA in a timely manner. Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety defect exists and to promptly conduct a recall. NHTSA's investigation led the agency to believe that Toyota had not fulfilled its obligation to report a known safety defect within five days, as is required under the law.

Toyota Crisis

Toyota Motor Corp. Will Pay $32.425 Million in Civil Penalties as Result of Two Department of Transportation Investigations
Toyota will pay the maximum in civil penalties for each of the two violations stemming from the pedal entrapment and steering relay rod recalls. The maximum civil penalty established under the National Traffic and Motor Vehicle Safety Act is adjusted for inflation, and was set at $16.050 million at the time of the steering relay rod recall in 2005. In April, Toyota agreed to pay the maximum penalty of $16.375 million in response to the Department's assertion that it failed to notify NHTSA within five days of learning of the "sticky pedal" defect.

Toyota Crisis

4-TOYOTA PROBLEMS: WHAT CONSUMER COMPLAINTS TELL US ABOUT . THE 2010TOYOT PRIUS RECALL:
1- On one level, they're upset with Toyota's overall handling of the recall situation. Toyota is a disgrace , they ignored my repeated complains about heavy steering in my new 2010 camry and even , the Toyota steadfastly denied that anything was at variance with their "design "when their "design was flaued "which now has been proven, I lost much time , suffered (anxiety) while driving and traded this car in far less than a year at a significant loss. 3 -More than a few consumer complained that Toyota did not apear to be taking their concerns seriously. 4 - The death in California , of four people in a lexus , because of floor mat which jam the accelerator . 5 -One driver hit a deer on an Alabama highway on a clear October morning he wrote "from the day one of purchasing the car the brakes are really funky . 6- *"I feel very unsafe," wrote one woman. "I drive my children to school everyday and feel that Toyota does not seem to care if the Prius breaks [sic] functions properly.

Toyotas Top Executive Under Rising Pressure:

1- Akio Toyoda, the president of TOYOTA briefly apologized while at the World economic foundation -Davos, Switzerland. 2- He apologized again , at a hastily arranged news conference, where he said Toyota would establish a high-level committee to study the problems. I came out here today because I would not want our customers to spend the weekend wondering whether their cars are safe.

Toyotas Top Executive Under Rising Pressure:

Summary of Toyota recall: 1- IN 2007 Toyota recall 55,000 car ,due defects in floor mate. 2-IN 2009 Toyota recall of4.2 million car . 3-IN 2010 Toyota recall of 2.3 million car. 4-IN 2010 Toyota recall of 1.1 additional cars. 5-IN 2010 TOYOTA recall 437000 its of hybrids through the world due defects in brake system .

An Apology From Toyotas Leader :

Akio Toyoda, the president of Toyota, was billed as the main attraction at a House hearing , into the companys recalls of millions of cars recalls for which he profusely apologized and took personal responsibility. It was the second time in two days that Toyota executives testified at Congressional hearings. In his testimony, Mr. Toyoda tried to reassure lawmakers that the company was addressing problems that led to the recalls. In addition, he said, the company was moving to repair its damaged reputation. I have personally placed the highest priority on improving quality over quantity, Mr. Toyoda said. And I have shared that direction with our stakeholders. But in one blunt exchange, Representative Elijah E. Cummings, a Democrat from Maryland, asked Mr. Toyoda, Why should we believe that things are going to get better? In that settlement, Toyota agreed that it would pick up cars and trucks at the homes of drivers, pay for out-of-pocket transportation costs and offer drivers free rental cars during repairs

HOW TOYOTA CAN FIND ITS WAY BACK :

Toyota Motor Co. sold 3.7 million vehicles worldwide this year, down 11 percent compared to a year earlier. In the US, its July sales-2011 were down 22.7% compared with the same time last year. Toyotas inept handling of the recalls has contributed to a loss of value of every Toyota on the road, not just the models recalled. The damage to Toyotas reputation will be felt in the wallet of every Toyota owner.

The true cost of ownership is the purchase price less the value when you trade it in.
We can identify the Toyota sales disaster with the following graphs:

Toyota Motor Co. sold 3.7 million vehicles worldwide this year2011, down 11 percent compared to a year earlier.

8-HOW TOYOTA CAN FIND ITS WAY BACK : In the US, its July sales-2011 were down 22.7% compared with the same time 2010.

Nov 2011

% Chg from Nov '10

YTD 2011

% Chg from YTD 2010

Toyota Camry / Solara

23,440

13.0

275,004

-7.3

Toyota Corolla / Matrix

16,115

-0.5

219,250

-10.2

Toyota Prius

15,208

48.7

119,459

-4.7

How TOYOTA CAN FIND ITS WAY BACK:

1-Maryann N. Keller: financial analyst: Recovery Will Take Years 2- Michael Smitka is a professor of economics at Washington and Lee University. Over the last decade, Toyota launched a product onslaught that left its staff exhausted and meant red flags were missed. 3-Sean mcaliden is executive vice president of research and chief economist at the Center Automotive Research : Toyota responded successfully to the reported defects

WHAT IT WILL TAKE TO RECOVERTOYOTA responded successfully but it will take years to recover FEEDBACK FROM 1989 RECALL

FEEDBACK FROM 1989 RECALL: Toyota, by comparison, responded very successfully in 1989 to the reported defects in the original Lexus 400. The company blanketed its customers with attention. and actually improved its reputation. The cars were repaired in the owners driveways or at their place of work. And loaner(RENT CARS) cars were made freely available. Toyota should now launch a broad campaign similar to its Lexus response. By comparison In 2011Toyota agreed that it would pick up cars and trucks at the homes of drivers, pay for out-of-pocket transportation costs and offer drivers free rental cars during repairs. Toyota Motor Corporation will pay an additional civil penalties to the federal government for failure to report safety defects to the National Highway Traffic Safety Administration (NHTSA) in a timely fashion. Toyota will pay compensation to families of victims but recover will take years.

"Toyota Safety Thank You Crisis IN US