Date Published: 
02/10/2011

The National Highway Traffic Safety Administration announced, after extensive lab and field testing that the electronics in Toyota's vehicle control systems were not at fault in a series of sudden acceleration incidents last year. 

The sudden acceleration situation was linked to two factors - mats, and defective gas pedals.  Millions of cars have been recalled to address these issues. However it was suspected that, and widely reported, that Toyota was hiding secret defects in its electronics.  Despite repeated denials, Toyota's repuation for quality took a big hit in the public mind.

Toyota his slipped substantially in the car sales rankings over this difficult period. Despite being vindicated, it will be awhile before the public accepts that Toyota's reputation, and sales, are fully restored. 

Risk Management Perspective: 
  • Quality and Reputation go hand in hand.  Missteps can be very difficult for high quality producers
  • Toyota's actions provide a useful case study of addressing quality management and reputation issues.
Industry Group: 
Large Enterprises
Industry: 
Automotive
Country: 
United States
Risk Class: 
Operational
Risk Type: 
Reputation
Risk Type: 
Quality Management

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