After decades of hard work setting the bar for the industry for quality and reliability, Toyota’s recent recall woes with a number of its models have left its revered reputation in tatters. Managing 10 million recalled cars is a costly issue no doubt, and for some corporate cultures, one of the last things you’d ever want to do. But consider what was at stake: sudden acceleration that can cause life-threatening accidents. Executives could have acted decisively and done the right thing by pre-emptively recalling vehicles, but only did so after weeks of public and government outcry. Sales are most definitely taking a hit, and export figures are being revised downward. In the first couple of weeks, Toyota’s market capitalization dropped over 20% or $35 billion.
Feb 24, ’10 11:54 PM