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.”
A quarter century ago, give or take a year, my brother Paul became the first in the family to drive a Toyota. A 1984 Toyota Celica-Supra. It was a true shifting of gears for the Lang Gang. Everyone up to that time had bought a GM. Mom and Dad drove Cadillacs (only one saw 100k). The eldest one had a Monte Carlo (a.k.a. Crapo) that didn’t see the road half the time. Second in line had a Regal (a.k.a. the dying diesel) that ended up stolen and trashed in the Grand Canyon. He actually felt sorry for the Canyon. Within three years both these Roger Smith specials were replaced with 1988 Celica GT’s. Great cars with no nicknames necessary. Three years later I had a Celica GT-S sitting on my driveway. Even better. Still no nicknames. By the end of the decade everyone in the family had a Toyota. But then things changed…
Toyota got hammered by another big recall today, with 2.3m vehicles called back for sticking accelerator pedals. According to Toyota’s release, this recall is
separate from the on-going recall of approximately 4.2 million Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.
How much more of this can Toyota take? One thing is for certain: ToMo has got to pull its current ad campaign which emphasizes the alleged quality of Toyota products. Cognitive dissonance might work in the short term but once consumers wise up they’ll never trust you again. Just ask GM.
Toyota’s head start on hybrid technology is easily the most significant advantage any one automaker holds over any other. It’s next closest competitor in hybrid offerings is Honda which is facing serious challenges as its Prius competitor, the Insight, is off to an incrediblyweakstart. To capitalize on this advantage, Toyota plans to up annual production of its hybrids to one million units by 2011. Despite reports that Toyota is refocusing on hydrogen fuel cell vehicles as a long-term option, Yoshihiko Tabei, chief analyst at Kazaka Securities believes:
For the foreseeable future, the focus of Toyota’s (low-emission car) strategy will be on hybrids, not electric or fuel-cell cars. Except for Honda, Toyota is facing little competition in hybrids and is set to put distance between itself and other automakers
Parts suppliers in Japan had near death experiences when they opened their Nikkei [sub] this morning. Parts suppliers in China and the rest of the world suffered heart and respiratory problems when the news of Toyota’s latest plan hit the news-wires. (Read More…)
Automotive News China [sub] reports that Mercedes believes its Chinese-built cars are every bit as good as its German-built models. Ulrich Walker, Chairman and CEO of Daimler Northeast Asia says:
Yes, our cars here are exportable. There is no difference in quality with those made outside China.
But, as Bertel Schmitt reports, demand for luxury cars is strong enough in China that we won’t be seeing “Beijing, China” as the point of assembly on US-market Mercs.
I was watching the classic British gangster film “The Long Good Friday” the other day. For those not in the know, it’s a story about how Harold Shand, the kingpin gangster of London, struggles to keep his grip in the London underworld when the IRA try to muscle in on his patch. I won’t spoil it for you, but suffice to say, it isn’t pretty. Shortly after watching the film, I came across an article in the Wall Street Journal detailing yet another Toyota quality problem. From Floormatgate to the 110,000 Tundras which allegedly rust prematurely, to this most recent headline, “Corolla and Matrix face U.S safety probe,” there’s clearly something rotten in Toyota City. Much like the aforementioned Harold Shand, Toyota built an empire on the foundation of quality and reliability, but now, subsidence and rot are affecting that foundation. The question for the Best and Brightest is this: Are Toyota in danger of losing their crown of quality and reliability in the minds of consumers? Or are these recent cases statistical outliers that car buyers take for granted?
The AP reports that GM is suing supplier JTEKT North America Inc. of Plymouth, MI for faulty steering systems used in 2005 model year and later Cobalt, G5 and HHR models. GM’s suit alleges the JTEKT steering systems exhibited “excessive gear backlash,” causing a variety of noises that the General has spent $30m fixing under warranty so far. “JTEKT contends the components all met the specifications and testing requirements that GM gave it,” says the supplier’s lawyer. “The issues do not affect the operator’s ability to control the vehicle. This is a noise issue.” GM admits that the issue does not affect safety, but claims total repair costs could continue to rise as more vehicles receive upgrades under warranty. Current Cobalts and derivative models have received upgrades, although the AP does not specify when they took place. Keep an ear out for this problem if you’re considering a used Cobalt.
Earlier this week Chrysler talked about taking real steps to improve its quality. Today it’s GM. Mark Reuss, GM’s head of engineering, had this to say to the Detroit Free Press:
Reliability has been the Achilles’ heel of GM for my entire career,” he said, promising he would focus the company’s engineers around the world on fixing the problem. “It gets down to an individual engineer’s ability to find a problem and leadership’s ability to fix it,” he said, adding that too many GM engineers have been reluctant to point out problems because they were afraid they’d get the blame rather than praise for catching the mistake before customers suffered.
“There is no other area in the field of human communications that is as rife with disinformation as the story on Chrysler quality,” then Chrysler President Bob Lutz once famously said. Some things never change. According to today’s Detroit News, Chrysler is claiming that they will be a (though not “the”) quality leader by the end of 2012. They (and many other auto makers) have made similar claims before. Sometimes they achieve these goals. More often they don’t. Chrysler’s chances?
We don’t have any numbers yet on GM’s 60 day money-back guarantee, but according to GM dealers speaking to Automotive News [sub] it’s not generating a lot of interest. “If [customers] like the car, if they test drive the car, most of the people would rather have a car to keep,” explains one dealer. Which makes a certain amount of sense, and which is why dealers insist that the number of buyers taking GM up on the offer doesn’t matter. “It’s more important to talk about the money-back guarantee. It conveys confidence in the vehicles,” says another dealer. “It’s not about the deal, but rather it’s about the world-class products.” That sounds good in principle, but the reality is that it actually is all about the deal. Again. Still.
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