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Toyota’s Business Strategy

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On the 2nd of November 2009, the corporation sent letters to 3.8 million car owners asking them to remove the floor mat on the driver’s side and asking them not to replace them with any other type of floor mats. According to these letters, these floor mats had been the singular cause of the unintended acceleration that had occurred in the many instances and by taking them out, drivers would be potentially safe from any such hazard in the future. (Toyota Pressroom, 2010)However the National Highway Traffic Safety Administration criticized the car manufacturing giant for this step and eventually on the 25th of November, Toyota had to issue a recall for the same 3.8 million vehicles which had been sold in North America. The company issued a remedial strategy that included the reconfiguration of the accelerator pedal, the installation of a brake override system that would prevent any further instances of unwanted acceleration and the provision of thinner floor mats to replace the all-weather floor mats that had previously been assumed to be the sole cause of the accidents (Toyota Pressroom, 2010).The strategy, initially at least, that was employed by the car manufacturing giant had not been a strategically correct move. The company, as a brand name has always commanded great respect in the automobile industry and has been associated with quality and reliability. However, the manufacturers came under great criticism for the delay that was shown in recalling the faulty vehicles.The first recall was followed by another one on 21st January, known as the sticky pedal recall and was a result of complaints that identified incidents where the accelerator pedal became harder to press and became stuck in a partially depressed position. The company promised a repair in the recall announcement to counteract this problem and promised the customers a replacement on the faulty accelerator pedals.