Toyota Case Study : Toyota Motor Corporation

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Introduction of Toyota
Toyota Motor Corporation is a Japanese multinational corporation, which is famous for manufacturing affordable quality automobiles. Toyota entered to the U.S. market in 1957. It took Toyota more than 40 years to take 10% share of U.S. market. Almost 50 year after entering the U.S. market, Toyota surpassed Ford and Chrysler in 2007 to become the second most popular automotive brand in the United States(Rajasekera, 2013).
Review of the Recalls in January 2010
Since 2007, Toyota has experienced a series of car model recalls because of serious potential defects such as unexpected acceleration, brake system defects, steering malfunction and so on. However, the trigger of the massive recalls is the report of a fiery crash in California. On August 28 2009, a Lexus ES350, driven by a California state trooper crashed, resulting in the driver’s death and three members of his family. The cause of the crash was sudden unintended acceleration(Fisher, 2010).
On September 29 2009, Toyota took external action on the mat problem, approximately one month after the crash by announcing a recall.
On October 5 2009, Toyota sent direct mailings to advise the owners of target type cars to remove the floor mats from their vehicles. At the same time, however, a Toyota executive insisted that there was no design defect in the car. The National Highway Traffic Safety Administration (NHTSA), however, took a different view, arguing that there might be some problem in the pedal as
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