Category: Customer Relations

By on January 28, 2010

Though Toyota is getting the brunt of the attention for what are apparently faulty gas pedals, the fact that the problem has been traced to supplier CTS means that Toyota isn’t the only OEM that’s shutting down production until a fix for the pedals is found. Bloomberg reports that Ford’s JV with Jiangling Motors in Nanchang, China has halted production of the Ford Transit commercial van, after switching over to CTS-supplied pedals in December. “We think it’s pretty isolated, but we are aggressively running it to ground,” Ford’s Alan Mulally told analysts in today’s financial results conference call. No other Transits are said to be affected, and Jiangling says that they have not received any reports of unintended acceleration for its Transits.

By on January 28, 2010


Here is a round-up of the Toyota news that is flowing furiously out of all news outlets. Everybody, from the Wall Street Journal to Al Jazeera weighs in on the issue. Grab a cup of coffee. Or something stronger.

More recalls: Toyota announced late Wednesday that it must recall another 1.1 million vehicles “to address the risk that floor mats could trap accelerator pedals and cause bursts of sudden acceleration,” says Reuters. According to Reuters, “Toyota now has recalled nearly 6m vehicles for problems with the accelerators used across its lineup.” This is not counting the 2m vehicles in Europe that will be recalled.

EU recall official: Toyota Motor said today that it definitely will be expanding the recall to Europe, says AFP via Google. “Toyota will implement a recall in Europe,” said company spokesman Paul Nolasco. “We are still not sure about the models and the number of vehicles.” Initial estimates, published by The Nikkei [sub], spoke about another 2m cars in Europe. Plants will not be closed in Europe, because different parts already are being used in new production.

Recall spreads to China: China’s quality watchdog agency said “bu hao” to Toyota and ordered  the  recall of at least 75,000 vehicles  in China,” says London’s Times. Read More >

By on January 27, 2010

Back when GM was going through its recent bankruptcy bailout-related unpleasantness, Toyota’s Yasuhiko Ichihashi told the AP that “Toyota was only hoping for an overall recovery for the U.S. auto industry, including GM.” Months later, then-Toyota President Katsuaki Watanabe even suggested that “it’s not something we would bring up on our own, and we don’t know enough about the restructuring plan, [but] if some talk about supporting GM comes up, we would like to consider it earnestly.” Now that Toyota is in a spot of PR trouble over its unintended acceleration woes, you might expect that GM would show the same class and tact that Toyota did just months ago… but you’d be wrong.

Read More >

By on January 27, 2010

Toyota’s decision to halt sales of eight models in connection with the ongoing unintended acceleration debacle was made at the order of the NHTSA, reports the Detroit News. “Toyota was complying with the law,” NHTS reps tell DetN. “They consulted with the agency. We informed them of the obligations, and they complied.”According to the DetN, Toyota was legally required to halt sales when it announced its latest recall five days ago. Why didn’t Toyota halt sales then? NHTSA isn’t saying, only going as far as to say “at this point, you need to talk to Toyota about those decisions. We’ll be continuing to work with Toyota and having conversations.”

By on January 27, 2010

Toyota’s decision to suspend production and sales in North America of eight recalled models is sending shock waves through seismically sensitized Japan . Tokyo’s Nikkei [sub], usually not prone to sensationalist reporting and strong language, says today that “the fiasco is likely to have unfortunate consequences for the automaker’s image and earnings.”

According to the Nikkei, the eight models recalled for sticking accelerator pedals accounted for about 60 percent  of Toyota’s North American sales last year.  The production freeze will affect five North American plants. “A prolonged halt would inevitably influence Toyota’s bottom line,” warned an analyst at one major securities firm.

According to the Nikkei, “it is rare for an automaker to suspend production and sales because of a recall.” A Toyota spokesperson pointed out that this is not the first time for the company to make such a move. However, they acknowledged that the scale this time is unusually large. Read More >

By on January 26, 2010

The nightmare continues for Toyota. Full press release after the jump.

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By on January 13, 2010

Reuss's Revenge? (courtesy:daylife)

GM has a tough row to hoe in 2010, with the launches of key products like the Cruze and Volt going on sale, an IPO to worry about, and a sales slide (down 30 percent for 2009) to reverse. Still, according to GM’s new North American boss Mark Reuss, navigating the congressionally-mandated dealer arbitration is the top challenge of the coming year. At a speech last night, Reuss told reporters from Automotive News [sub] that:

I welcome this as an opportunity for GM and the dealership network to go through a change in our network with integrity,

As opposed to the arbitrary bankruptcy-era dealer cull?
Read More >

By on January 12, 2010

Assured success?

NPR reports that Hyundai’s Assurance Plan, which is widely credited for much of that automaker’s success since the financial meltdown, has been taken advantage of fewer thn 100 times since it was instituted a year ago. In that time, Hyundai has sold over 435k vehicles, meaning the program has cost surprisingly little. Hyundai Motor America CEO John Krafic explains:

we treat it almost like a kind of insurance, a kind of social insurance, so we had to make some, you know, financial set-aside for it. And in the end, it ended up being substantially below what our expectations were, thank goodness.

According to Krafic, the program took only 37 days to implement. [Hat Tip: ClutchCarGo]

By on January 7, 2010

It was a very good decade...

This graph of Hyundai’s market since 1993 is a refreshing antidote to yesterday’s depressing Detroit market share picture. And it doesn’t take a whiz kid to deduce the single most important factor in Hyundai’s success. Notice a bit of an uptick starting in 1998? That was the year Hyundai introduced its 10 year, 100,000 mile warranty. It’s been suggested before on these pages that GM should address its “perception gap” with meaningful improvements in warranty coverage rather than more talk. After all, if it could fix Hyundais weak 1990s-era rep, it couldn’t hurt The General’s. This seems to be conclusive proof that warranties matter as much as the products they cover. After all, what good are a few extra horsepower or more interior room to a consumer compared to insulation from risk?

By on December 21, 2009

In a delightfully surreal bit of news out of India, a man sued GM for claiming one of its SUVs had mountain goat-like capabilities when it couldn’t in fact navigate one foot-deep water. What, you might ask, is the SUV in question? The answer is just another amusing twist to this hilarious tale of marketing claims meeting cold, wet reality. Here’s a hint: it’s sold in the US, but not as a Chevrolet…

By on December 21, 2009

Show me the model mix (courtesy:dealerrevs.com)

Ford’s pointy-headed crew of sales forecasters have been compared to the original “Whiz Kids” and credited with a major role in Ford’s (relative) success in the last year. But you can’t calculate everything through statistical analysis, and it seems the models coming out of Ford’s Global Lifecycle Analytics Department failed to take irrational enthusiasm into account. Which is frankly, fairly understandable. The $37,000+ Taurus SHO starts at a full $12k more than a base model, making it a 365 hp halo more than a legitimate sales threat, and yet Ford’s forecasters seem to have underestimated demand for the turbocharged model, with at least one dealer reporting an 80 day wait on a sold order. “It’s a problem for our dealers,” Ford’s Jim Farley admits to Automotive News [sub], “we’re definitely catching up on the demand.” Mid-range SEL trim levels have also been underproduced, says Farley, along with F-150 double cabs. “If you don’t call it, you miss that opportunity and customers don’t see what they want to buy.”

Read More >

By on November 25, 2009

Automotive News [sub] is reporting that Toyota will replace or reshape some 3.8m accelerator pedals to reduce the risk of them becoming lodged against floormats. Toyota will also be replacing some floormats as it battles a recent unintended acceleration scare. But far more interesting than the prosaic alterations to pedals and mats is Toyota’s decision to take modifications a step further on certain affected models. AN [sub] explains:

Toyota will install a brake override system on the involved Camry, Avalon, and Lexus ES 350, IS 350 and IS 250 models “as an extra measure of confidence.” The system will shut off engine power if drivers press the accelerator pedal and brake pedal simultaneously.

Oy. More proof that it only takes a few idiots thinking their car is possessed to ruin burnouts for everyone. Well, everyone who owns a slushbox Toyota or Lexus, anyway.

By on November 23, 2009

Maybe we should have checked a reliability survey... (courtesy:washoe.k12.nv.us)

When buying a car, what do people really want to know about its reliability? Often: what are the odds it will turn out to be a lemon? And does it have a good shot at requiring no repairs at all?

Consumer Reports and J.D. Power have never answered these questions. They’ve only provided vague dot ratings that indicate how a car compares to the average for all cars. Even TrueDelta, which has been providing car models’ average repair frequencies, and not just dots, has not been directly answering these questions. Instead, car buyers have had to infer their odds of getting a lemon from the average repair frequency.

With the latest update to TrueDelta’s Car Reliability Survey results, released today, this will no longer be necessary. This update includes two new statistics: “Nada-odds” and “Lemon-odds.” From a car model’s Nada-odds, car buyers can learn how many cars out of a hundred required no repairs at all—nada—in the past year. And from its Lemon-odds they can learn how many out of a hundred had to go to the repair shop three or more times in the past year.

Read More >

By on November 23, 2009

Where's the transparency?

The most expensive Toyota ever made, the $375,000, “totally customizable” Lexus LF-A will not be available for sale to anyone, reports Automotive News [sub]. Not because nobody wants to pay that much for a Toyota though, but because the company is somehow worried about price speculation. “If someone buys it the first month and then decides to sell it, that could be damaging for the ownership experience,” says Lexus VP sales Brian Smith. “If it is not controlled and hits the speculation market, all bets are off. We want people out driving the car and not just parking it in a museum or selling it at an inflated price.” Which is why only 500 models are being produced? At the end of the mandatory two-year lease, customers will have the option of buying their LF-A outright. So how does the world’s largest automaker build such an advanced, limited production machine and not expect speculation and/or hoarding to take place? Moreover, how will they guarantee that LF-As are actually driven during the two-year lease period? One of the greatest sins of the auto industry is the reluctance to admit that a brand belongs to customers. For Toyota, it seems, not even its brand-defining supercar will truly belong to its customers… for two years anyway.

By on November 9, 2009

Welcome!Welcome one and all to the new TTAC. Take a moment to look around and you’ll see that in addition to a new logo and some graphical changes, we’ve made some functional upgrades as well. For one thing, we finally have a customizable Google search window. We have also integrated a Facebook Connect feature which will allow you to log in using your Facebook profile, and we’ve made it easier to share your favorite TTAC posts using Digg, Twitter, Facebook and more. You’ve probably also noticed our new “Featured Story” bar at the top of the page by now. We have more cool new functions coming down the pipe, so stay tuned. In the meantime, we’re back to deliver all the news, commentary and analysis you can handle. Thanks for bearing with us during the upgrade, and enjoy!

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