Aspects of Toyota Company Case

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Table of Contents

Introduction
Issues for recall and production Shutdown
The Actions Toyota Company Took
Recommendation as a Consultant
Immediate and Long-term Ramifications
Ethical Implications
Conclusion
References

Introduction

Toyota encountered a problem with its automobiles’ rapid acceleration in the years 2009 and 2010. The problem led to the company stopping manufacturing temporarily and recalling millions of vehicles. The company experienced a decline in its sales and a loss of trust from consumers leading to fault reputation and job losses as dire implications. The paper focuses on independent research on the Toyota Company case.

Issues for recall and production Shutdown

Toyota Company’s recall and manufacturing shutdown presented the issues that contributed to the acceleration problem of the firm. The initial recall was to address the possible incursion of an out-of-place front floor mat of a driver into the foot pedal well that might lead to pedal entrapment (Scanlon et al., 2018). The next recall was to correct the possible mechanical sticking of an accelerator pedal, leading to involuntary acceleration.

The Actions Toyota Company Took

The company decided to replace the floor mats and pedals. Further, it suspended sales and manufacturing to prevent more cars with mechanical issues from entering the market. Toyota removed all-weather floor mats and replaced them with newly designed mats. They installed a brake override system that cuts engine power. They made a replacement pedal having a similar shape to the adjusted pedal. However, the actions Toyota took did not work because some US owners who had their recalled cars repaired still encountered pedal problems, resulting in investigations to find the improper repairs (Gaspar & McGehee, 2019). The recall contributed to additional NHTSA and Toyota investigations together with several lawsuits.

Recommendation as a Consultant

If I had been in the consulting position for Toyota, I would not have proposed similar measures. In the first place, I would have commenced an investigation into the matter. Toyota rushed into the issues to make the conclusion that led to floor mats and pedals without considering the software of the vehicle. A good investigation, in this case, could have resulted in better planning and utilization of resources to address a precise problem (Anderson, 2017). NHTSA findings showed no electronic defect, even though driver misapplication or error was found responsible for many accidents.

Nevertheless, it was revealed that the wire throttle system caused acceleration because of deficiencies in the driver. The Toyota case as presented in the jury’s judgment discovered that the company did not adhere to best practices for real-time life-critical software (Anderson, 2017). The firm should have carried out this research; thus, my recall proposal needs to have been to repair the operating system and software instead of the floor mat or the pedal.

Immediate and Long-term Ramifications

Toyota’s inactions immediately affected the brand in the automobile industry. The company came into extensive criticism with proposals that stress profits had led to manufacturing defects. In addition, the firm long-term ramifications were a decline in its sales revenue. Toyota Motors Corporation witnessed losses amounting to $2 billion from lost sales and output (Anderson, 2017). Further, people lost their jobs on the recall day due to the incident.

Ethical Implications

The firm needs to have considered the following ethical implications responsibility, moral ideas, and effects, which led to an ethical dilemma with the vehicle manufacturer. The use of ethics is vital because it directs the business in avoiding lawsuits. For example, Toyota failed to resolve complaints entailing impulsive involuntary acceleration in 2002. However, the company insisted that the defective cars speed out of control due to sticking gas pedals and the floor mats (Scanlon et al., 2018). With proper investigations, the company could have avoided and prevented the implications it experienced.

Conclusion

Toyota identified two issues it considered to be causing recall and production stoppage comprising all-weather floor mat problems and brake and accelerator issues. The company took action by suspending its production and recalling vehicles to resolve the issue. The findings revealed it was due to software malfunction and an issue that was not related to its early stated issues. Hence, had the company done its investigations well it could have avoided and prevented the negative effects it encountered such as faulty reputation and decreased sales.

References

Anderson, A. F. (2017). Case study: NHTSA’s denial of Dr Raghavan’s petition to investigate sudden acceleration in Toyota vehicles fitted with electronic throttles.IEEE Access, 4, 1417-1433. Web.

Gaspar, J. G., & McGehee, D. V. (2019). Driver brake response to sudden unintended acceleration while parking.Transportation Research Interdisciplinary Perspectives, 2(1), 100039. Web.

Scanlon, J. M., Sherony, R., & Gabler, H. C. (2018). Models of driver acceleration behavior prior to real-world intersection crashes.IEEE Transactions on Intelligent Transportation Systems, 19(3), 774-786. Web.

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