Toyota Recall

Topics: Automobile, Social responsibility, Term Pages: 2 (594 words) Published: November 2, 2011
  About a year ago, there was shocking news from automobile industries. It was Toyota recall crisis. Since the company had been iconic for its great quality, and wonderful reputation, the news was even more backstabbing. The problems first arrived with a single, car crash that took place in southern California in the U.S August last year. The crash was attributed to flaws in the pedal and killed the one whole family. Toyota called two separate recalls covering over 7.5 million cars. They were forced to stop all sales of eight of Toyota's best selling models which costed the company and its dealers a minimum of $54 million a day in lost sales. The first recall, covers 4.2 million Toyota and Lexus models, owners were to remove the floor mats from their cars and place them in the trunk, or to have the floor mats zip-tied in place by a Toyota dealer. The recall covers many models and year. The second recall covers 2.3 million cars which together account for over 50% of Toyota's sales.    I found even more surprising facts in an article. It says Toyota had detected defects in accelerator in 2007. According to the data of Highway Traffic Safety Administration, a complain was reported about Toyota's pick-up truck 'Tundra' on March 2007. The problem was the pedal which would not get back into place. Nevertheless, Toyota held off on taking measure insisting that the cause is attributable to the environment. It says malfunction is due to the expansion of some components of the car which happened because of the increase of humidity inside the car. Also in Europe, faults in accelerator was reported on December 2008 but Toyota did not take any measures this time either.     A couple of weeks ago, my professor of business administration spent quite some time on emphasizing ethics and corporate social responsibility while lecturing. To be frank, I was pretty skeptical about the topic. I thought no one would pay so much attention to whether some business man is honest or some...
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