Toyota Recall

Topics: Supply chain, Supply chain management, Management Pages: 4 (1211 words) Published: October 18, 2010
1. The main reasons of Toyota’s recall issues
Lately, people most concerned about the recall event which happened on the world’s largest vehicle manufacturers, Toyota. This event affect all over the world including China, USA, Europe. The incident makes the corporate brand image dropped and also loss the consumer confidence. Why this event did occur? During the research and analysis, the major cause of Toyota’s recall is the quality issues. For example the accelerator pedal problem, many different types of car were recalled, like RAV4, Corolla and Venza and even some very good quality cars, like Lexus. In this case, from suppliers to the manufactures all have quality problems.

1.1 Suppliers
Because pursue the maximum benefits and cost minimization, suppliers pay more attention on how to reduce cost. This lead to them neglects the raw materials quality. On the other hand, due to the Toyota over-confidence suppliers, the supplier changed the components’ design without permission. Some information pointed out that one of the Toyota suppliers called Chicago Telephone Supply Co. (CTS) changed the pedal design that is one of the reasons leading to the pedal problem. (Bernard Simon, 2010)

1.2 Manufactures
They used the problem components to product without quality check and after the production they also did not do better quality check. They design also have some problems, they did not do enough test of their design before they produced. All these result the recall incident. This kind of things indicates that Toyota lack of an effective quality control.

2. The recall issues caused by outsourcing
In this globalized and competitive environment, outsourcing become a more and more useful way to help company improve business, but it also can be lead to some problems, like Toyota. Only 30 per cent components are in-sourced in Toyota, it means Toyota use a lot of outsourcing to reduce cost and increase marketing share. But now the outsourcing let Toyota fall into...
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