Toyota Recall Analysis

Taking the loan crisis as the blasting fuse, the international financial crisis started in the second half of the 2008 and became increasingly fiercely. This crisis was caused by the hypothesized economical over expansion. Perhaps from this notion, people fall into an erroneous zone, thinking the bubble eventually is the hypothesized economy "patent", as if it does not have any relationship whatsoever with the real economy. However, a short period of time before the Toyota recall event Toyota had already lost its high place in the automotive industry.

Some reports pointed out the problem stems from the accelerator pedal in Toyota cars. From January 28, Toyota already in the US, Europe and Asia recalled total quantity over 8 million, a biggest scale automotive product flaw recalls event throughout history. For any enterprise, no one daring to fight and never appears to guarantee a quality problem. However, the quality of Toyota Motor, known for large-scale recall of events, but also so scaled up, makes people feel a bit surprised about the quality Toyota thus the myth was widely questioned. Thus, it can be said that the reason why Toyota has met its downfall was quality.

Toyota is the world's largest automaker. The overall impression is that, no matter where in the world a place where the Toyota car, will make every effort to achieve global harmonization of the quality of Toyota quality, which is why Toyota's success in the world an important reason. For example, Toyota's "rationalization proposals put" system can be described as universally known, to improve the quality of Toyota cars, so that Toyota could have been walking in the forefront of the world's automotive industry plays a vital role. The initial form of this system was enacted in November 1938 "employment principle" as defined in the. As technology advances, the company's development and popularity of the system is being continuously improved. However, as Toyota's brand value rising, in recent years, Toyota seems to have some self-satisfied, and on the quality of some "small problem" is also not as seriously.

Some people may ask, like the well-known big companies like Toyota, why such a large scale recall the incident took place, and even alerted the U.S. Congress and the Japanese Prime Minister. In turn, asked, why not? Of course, the Toyota brand priceless. If you hang a car produced by Toyota logo, can be relatively easy to sell. Is very simple, Toyota this brand for quite a long time almost becomes synonymous with high-quality cars. But neither a man nor do something under the famous must be worthy of the name. Were the case, companies are also true for the well-known companies such as Toyota is concerned, it must be known, in fact in line. Otherwise, this well-known brand would also be a bubble.

In fact, the well-known brand is also a goodwill resource. Taking advantage of this goodwill, resources, and enterprise can do more with less. For any entrepreneur its goal is to foster a well-known brand. But it is easy to damage a well-known brand. It now appears that Toyota recall incident took place a number of thought-indeed more intuitive view of product quality is the neglect and disregard for the safety of customers, in fact reflects Toyota's reputation for its long over-overdraft is typical brand foam. It should be noted that, if not covered with the famous Toyota brand, Toyota's quality problems may not be hidden until today only to be exposed. People put too much of the gold content of the Toyota brand, so that the quality of Toyota's hidden time and again been "overlooked." This time, Toyota has been requested from the high above the altar down, which is very painful. However, it is no wonder that others can only blame Toyota itself.

From the perspective of the development of the world automobile industry, automobile industry is a very high demand economy of scale industries. With the Toyota recall incident, the competitive landscape of the world's automotive industry is bound to change. This incident does recall Toyota How do you look enough. First of all, whether or not able to do to avoid disaster, Toyota or even bankruptcy of the company will inevitably be tired. According to the U.S. Government's argument that if the Toyota was found to delay commencement of the recall behavior, it would face a fine of 16.4 million U.S. dollars, which is the maximum limit allowed by law. Of course, it's also the small amount of money. It is understood that the recall after the incident, Toyota only in North America will have to face a series of accident investigation and claims, the total amount of at least 36 billion U.S. dollars.

Second, Toyota's own values are shrinking. Toyota's massive recall, suspend the sale and halted, as investors dumped their stock market value evaporate within a week Toyota's 25 billion U.S. dollars. Perhaps Toyota's stock price will rise again one day, but Toyota's image in people's minds is very difficult to pick-up in a short time. It is obvious that Toyota's greater value lies in brand value shrinking.

Once again, Toyota's market share to a large extent by other car manufacturers will be eroded. Subject to recall events, Toyota's January sales in the United States fell 16 percent, the company's the first time since 1999 on sales in the United States fell below the 10 million units. In essence, triggering the recall of events is not the decisive factor in others, it is precisely Toyota itself.