Date Published: 
01/28/2011

Toyota this week recalled 2.3 million vehicles to repair gas pedals that can stick.  This follows last year's recall of over 4 million vehicles for similar "stuck accelerator" issues related to floor mats.  In this recall the actual gas pedal assembly is the target, as it can fail in rare circumstances. 

Toyota, like many other car makers is also choosing to recall more vehicles and act more quickly when issues arise.  This will help them recuperate their reputation with regulators, who were concerned they were being a bit slow to investigate and recall issues in the past. 

However, the press coverage associated with each recall continues to create issues in the public mind about the quality of the reputation.

 

Risk Management Perspective: 

Rebuilding trust, once it has been damaged, can be very expensive, and sometimes leave companies in with few good options.  

Industry Group: 
Large Enterprises
Industry: 
Automotive
Country: 
Canada
Risk Class: 
Strategic
Risk Class: 
Operational
Risk Class: 
Industry
Risk Type: 
Reputation
Risk Type: 
Quality Management

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