The Toyota Recalls

One of the most prominent automobile manufacturers in the world is now faced with a major obstacle that stands to damage it irreparably. Many experts assert that the current crisis Toyota faces as a result of severe safety shortcomings will be the most arduous challenge the company has had to deal with since its birth. Its decision to recall several brands is going to damage not only Toyota’s established “safety first” image, but also stands to jeopardize the entire Japanese economy.

Once the worst of the manufacturing problems began to come to light, Toyota Akio, a CEO of Toyota, held a press conference and publicly apologized Toyota’s technological flaws. However, this apology was not enough to alleviate customers’ anger toward the company, which has been openly criticized for not properly handling the potentially dangerous technological problems. Some have even accused Akio himself for refusing to completely bow at the conference. The sheer volume of accidents attributed to these defects has caused even the United States government to step in and offer its two cents on the growing crisis.

According to Associated Press, on February 22nd a district prosecutor’s office from Manhattan asked Toyota to submit documentations related to the recall situation. Economists are now predicting that this request implies that the prosecution might press criminal charges, as it is unusual for the legal system investigate firms undergoing safety recall. According to Financial Times, Toyota has been asked to submit documents on the accelerator pedal problem to the Securities and Exchange Commission in Los Angeles as well. Experts claim that the SEC is investigating whether Toyota has violated any safety regulation or even potentially lied under oath about the sudden acceleration problems.

Amid doubts that the United States government might be intentionally manipulating the market to resist the continuous growth of the Japanese car industry, Congress held a hearing  on February 23rd to discuss the persistent issue. Jim Lenz, President of Toyota’s operations in the U.S., Secretary of Transportation Ray LaHood, and several victims of the faulty accelerator were present. Lenz apologized for not meeting the expectations of customers, reacting to the situation slowly, and failing to communicate with both customers and U.S. safety regulation officials. However, he was especially insistent that the ETCS (Electronic Throttle Control System) does not suffer from technological design flaw. Despite Lenz’s apology, LaHood and the victims criticized Toyota’s current attitude toward American customers, as well as the ambiguous explanation for the cause of the recent safety recall. Rhonda Smith, a resident of Tennessee who experienced problems with sudden acceleration of her Lexus in 2006, went as far as to say that Toyota should be ashamed of itself in the wake of the crisis.

The unprecedented scope of the repercussions Toyota now faces in light of the recall has other automobile companies carefully reviewing their technological reports and cautiously inspecting every possible problem. As Honda and Nissan have also decided to move forward with their own safety recalls, the Japanese government is anxious about falling profits across the entirety of Japan’s automotive industry. The government has taken to pressuring other Japanese car manufacturers to act swiftly before any new problems surface and further damage the nation’s credibility in the eyes of the world. On the other hand, Hyundai, Volkswagen, and the American “Big Three” of GM, Ford, and Chrysler are all looking to enlarge their market share by offering incentives of up to $1,000 to customers who replace their Toyotas. For now, it remains to be seen what lasting effects this whole situation will have on the industry, and if Toyota will ever be able to win back consumer confidence.