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Toyota's Recall Crisis: What Have We Learned?

59 points| gth158a | 15 years ago |blogs.hbr.org | reply

35 comments

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[+] trustfundbaby|15 years ago|reply
> Toyota's Recall Crisis: What Have We Learned?

How completely unreliable our media can be when it comes to anything not having to do with Jersey Shore or American Idol?

Forgive the snark, but the idea that a company lost all that money, sustained such damage to their brand and image built over so many years simply because of a media that failed to do their jobs makes my blood boil.

[+] sudont|15 years ago|reply
And to think we scoffed at the Japanese conspiracy of an American media hit job against Toyota.
[+] adolph|15 years ago|reply
Don't forget the government role--even if the media simply reported what Secretary LaHood said the coverage would have been over the top.
[+] kiujhygthujk|15 years ago|reply
I wonder how much pull Toyota has with the Japanese media? (ie how much ad time they buy).

ANA is the launch customer for the 787, a few stories about safety concerns could end up with an 18month delay while the Japanese space agency does a study.

This would also hit Toyota's rivals (Mitsubish and Fuji) who are building parts for the 787.

[+] InclinedPlane|15 years ago|reply
Do you think this incident is unique and isolated? Perhaps everyone should re-investigate any of their beliefs that they've arrived at solely through media coverage.
[+] JSig|15 years ago|reply
>> So who won in this debacle?

The author does not mention the advantages that would come to GM as a result of this recall. Since the gov is an owner of GM, you could argue there was a potential conflict of interest here.

See this ->>>

"GM isn't wasting any time taking advantage of Toyota's weakened position after its massive recall and sales stoppage. The General has just announced new incentives for current Toyota customers.

In a phone call to Inside Line, a GM official said the new offer consists of zero percent financing for 60 months on most Chevrolet, Buick, GMC and Cadillac models. Cash buyers get $1,000 toward a down payment and lease customers can get a waiver of three payments up to $1,000.

To qualify for the incentives, customers must show proof that they own or lease a Toyota.

This is starting to get interesting. "

http://blogs.insideline.com/straightline/2010/01/toyota-reca...

[+] blhack|15 years ago|reply
I'm sure that this is a common phrase, but one of my friends gave this advice to me:

"Their perception is your reality."

He was talking about management, and maintaining a good image to your employees, but the phrase applies to everything.

People's perception was that Toyota had some terrible electrical problems, and the news media, being a for-profit endeavor, ran with it.

So Toyota's perceived problems became reality, and we needed to devote 10 months of the brightest engineering minds in the world to change that.

Unfortunately, that's how things work.

[+] kscaldef|15 years ago|reply
"So Toyota's perceived problems became reality, and we needed to devote 10 months of the brightest engineering minds in the world to change that."

Sadly, that's not how it works. People will forever remember that Toyota had horrible safety problems, and not that they were actually exonerated in the end.

[+] kiujhygthujk|15 years ago|reply
Alternatively they could just have type "Audi accelerate problem" into Google.
[+] karanr|15 years ago|reply
My biggest gripe with this is that when the truth finally comes out, it gets no attention. The perceptions that changed rapidly from "toyota = safety" to "toyota = death" will be slow to switch back. It will take years, although Toyota has done a good job marketing themselves since the incident.
[+] damoncali|15 years ago|reply
The interesting part of this is that NASA did a study. I used to work for NASA as a contractor. I never met anyone with automotive engineering experience. Not that there weren't any, but wouldn't it make more sense to hire an automotive engineering consulting company to do a study? Come to think of it, I wonder who NASA hired to do the study. I bet dollars to donuts it wasn't government (NASA) employees.

But people (and therefore politicians) see NASA and think smart. It just shows you how political this whole mess was.

[+] krschultz|15 years ago|reply
NASA does have a large continent of forensic engineers which is actually more relevent to the discussion than automotive engineers. Though so does the NTSB, so honestly I'd rather see a study done by the NTSB.

An automotive engineer will know how automotive companies usually design braking and acceleration systems. They can tell you if Toyota did something out of the ordinary compared to the industry standard. Assuming they didn't, the automotive engineer is no more qualified to go deeper than that than any other mechanical engineer. So bringing in a forensic engineer who knows how to deconstruct accidents is probably far more relevent than bringing in an automotive engineer who knows how to create a braking system by stiching together vendor components.

[+] Retric|15 years ago|reply
I think some of the people working on all those rovers keep up with automotive technology. Also, when it comes to the specific systems involved they know more about sensors, robotics, and real time systems than just about any organization on the planet.

PS: NASA engineers were contracted to conduct research into whether electronic systems or electromagnetic interference played a role in incidents of unintended acceleration. http://en.wikipedia.org/wiki/NHTSA-NASA_Study_of_Unintended_...

[+] sili|15 years ago|reply
NHTSA has been convinced all along that there are no real issues with the cars and the commissioned study was really just for show. NASA is the best agency to tap for this (read superstars of science and engineering). Average Joe on the radio is not going to go "they got NASA for this? Why?", he's going to say "NASA! Wow, they really mean business now"
[+] gth158a|15 years ago|reply
The events that led Toyota to recall 10 million vehicles may go down in industrial history as the biggest mountain of a crisis ever made out of the smallest molehill of a technical glitch. We now have verifiable facts, rather than conclusions drawn by the media based on assumptions, innuendo and fear.
[+] gth158a|15 years ago|reply
Here's a list of relevant articles: + The Washington Post editorial - "NHTSA Report Clears up Mystery - and Hysteria - on Toyota Cars" + Harvard Business Review - "Toyota's Recall Crisis: What Have We Learned?" + Bloomberg BusinessWeek - "Toyota: The Media Owe You an Apology" + Automotive News "One Year Later: Let's Get Beyond Toyota Speed Scare" + Fortune "The Safety Police Go after Toyota Again"
[+] scott_meyer|15 years ago|reply
So, from the executive summary, it appears that NASA looked at the throttle system and was unable to find a systematic explanation for it being stuck open. A stuck throttle, by itself, is quite awkward but if you have a working brake override system, an awkward lurch will be as bad as it gets.

But regardless of what NASA did or did not find, there were real accidents involving throttles which were stuck open for minutes at a time with the engine completely overpowering the brakes. Recall that in the 100mph LA crash which set off the investigation the brakes were completely destroyed.

That is a real design flaw, an error of commission by Toyota. Other cars, for example VWs, have a brake override and the drivers manual documents an accelerator "double-tap" protocol for giving the accelerator priority, say when starting on a steep hill.

Furthermore, in the week after the recall, the president of Toyota announced that Toyota throttle systems would henceforth include a brake override. Here's their official press release making good on that promise:

http://pressroom.toyota.com/pr/tms/toyota-extends-brake-over...

So I can't develop too much sympathy for Toyota. They made a basic design mistake in a safety critical system, and then refused to acknowledge the problem. That mistake and their mishandling of it cost them a ton of money and that is exactly as it should be.

[+] unknown|15 years ago|reply

[deleted]

[+] krschultz|15 years ago|reply
Is the floor mat really a Toyota specific problem? What is so damn awful about their floor mats that you end up in an accident?

I had a Ford and I put in rubber floor mats on top of the OEM carpet ones. No problem upon installation, but overtime they slipped up behind my pedals and I had problems with braking/acceleration. I stopped, got out, pull the floor mat back 3", and everything was fine. Now if I feel the floor mat creeping up I just pull it back. If you took 3 seconds to open your door and look at the mat behind the pedals it was an obvious problem.

I've had the exact same problem with the rubber floor mats on a Mazda 6, Subaru Forester, and Ford Explorer. The solution everytime is the same, pull the floor mat back into its proper position. It really isn't that hard.

So Toyota gets blamed for something that can happen to anyone, anytime, using any car and any floor mat. Why is that?

(On the other hand, Toyotas are far from perfect, on my girlfriends Toyota the sun visor is so far out of position in order to lower it you need to rotate the rearview mirror out of its way about 2". How did that pass QA?)

[+] eli|15 years ago|reply
Yeah, but 18 months is a long time to wait to see if you need to do a recall on a potentially deadly product.
[+] rgrieselhuber|15 years ago|reply
Still getting caught up on all of this, but there was a problem with sticky gas pedals?
[+] beefman|15 years ago|reply
Also from NASA this week: No evidence your neighbor is a Communist.