toyota case

Topics: Toyota, Kiichiro Toyoda, Toyota Prius Pages: 67 (11469 words) Published: November 13, 2013
9-511-016
REV: JANUARY 7, 2011

JOHN A. QUELCH
CARIN-ISABEL KNOOP
RYAN JOHNSON

Toy
yota Re
ecalls (A): Hit
tting th Skids
he
Th past few we
he
eeks … have m
made clear tha Toyota has not lived up to the high s
at
standards we s for
set
ourselves. More imp
portant, we hav not lived up to the high standards you have come to e ve
p
expect from us I am
s.
deeply disappointed by that and ap
y
pologize.
oda, Presiden of Toyota M
nt
Motor Corpor
ration,
— Akio Toyo
February 9, 2010, Wash
hington Post O Ed1
Op
My advice is, if anybody owns one of these ve
y
a
ehicles, stop dri
iving it.
— Ray LaHoo United Sta Secretary of Transport
od,
ates
y
tation
Februa 3, 2010 to U.S. House A
ary
Appropriation Sub-Comm
ns
mittee2
No I have to dr around and worry if I’m going to get ki
ow
rive
d
illed.
— Mar
rilyn Bauer, T
Toyota Owner, January 28, 2010, to New York Post rep
,
w
porter
upon leaving Toyo dealership with a new 2010 Toyota R
n
ota
p
Rav43
On August 28, 2009, an off
n
,
f-duty California Highwa Patrol offic was driving with his wife, ay
cer
daugh
hter, and brother-in-law in a 2009 ES35 Lexus, ma by Toyota the world’s largest carm n
50
ade
a,
maker
since 2007. Release on Septem
ed
mber 10, 2009 the 911 call the driver m
9,
l
made when h realized th he
he
hat
could not stop the car horrified audiences in the United St
d
tates and arou the world
und
d:
Drive
er:

Our accelerat is stuck. W
tor
We’re on 125.

911 D
Dispatcher:

Northbound 125. What are you passing
e
g?

Drive
er:

We’re going 120. Mission Gorge. We’r in trouble. We can’t … there is no br W
re
rakes.
End freeway half mile.

911 D
Dispatcher:

You can’t do anything like turn off you engine?
Y
e
ur

Drive
er:

We’re appro
W
oaching the i
intersection. W
We’re approaching the in
ntersection. W
We’re
approaching the intersecti
ion. Hold on. Pray Pray. O shoot there OH OH
Oh
e’s.

A crash is heard the call is l
d,
lost, and all fo passenger were killed after the veh
our
rs
d
hicle accelerat to
ted
more than 100 mp before car
ph
reening off t
the San Diego highway. F Japan-based Toyota M
For
Motor
oration, a com
mpany once revered for i commitme to quality and reliabil 4 this inc its
ent
y
lity,
cident
Corpo
touch off a serie of recall an
hed
es
nnouncements of over 8.5 million cars w
worldwide, in
ncluding 6 m
million
_______
_______________
_______________
_______________
________________
_______________
_______________
________________
______
Professo John A. Quelch, Executive Director Carin-Isabel Knoo of the HBS Glob Research Group and Research Associate Ryan Johnso of the or
r
op
bal
p
on
HBS Glo
obal Research Gro
oup prepared this case with the sup
pport of the Japan Research Center (Research Associat Mayuka Yamaz te
zaki and
Executiv Director Nobuo Sato). This case was developed fr
ve
o
rom published sou
urces. HBS cases are developed sol
lely as the basis f class
for
discussi
ion. Cases are not in
ntended to serve as endorsements, so
s
ources of primary d
data, or illustrations of effective or inef
s
ffective manageme
ent.
ght
resident and Fellow of Harvard Colle
ws
ege. To order copi or request perm
ies
mission to reproduc materials, call 1-8
ce
800-545Copyrig © 2010, 2011 Pr
7685, wr Harvard Busin
rite
ness School Publish
hing, Boston, MA 02163, or go to ww
ww.hbsp.harvard.e
edu/educators. Th publication may not be
his
y
digitized photocopied, or otherwise reprodu
d,
uced, posted, or tran
nsmitted, without t permission of H
the
Harvard Business S
School.

This document is authorized for use only in Intro to IBUS SING by Phil eyre at Grenoble Ecole De Management from October 2013 to April 2014.

511-016

Toyota Recalls (A): Hitting the Skids

in the U.S.5 The total number of cars recalled approximated a year’s worth of Toyota sales: Toyota...
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