Business

Toyota official´s e-mail sheds a light on doubts within the leadership
by Zuzana Zelenakova

The word you have heard most frequently in connection with automaker Toyota recently is recall, no doubt about it. The first two major recalls were managed in cooperation with the US National Highway Traffic Safety Administration due to unintended acceleration of vehicles. There was a problem with gas pedal entrapment by floor mat. However, in January 2010, another recall was announced as some crashes occurred that were not caused by floor mat, rather there seemed to be a problem with the gas pedal itself. The third recall in February 2010 was due to hybrid anti-lock brake (ABS) system. Just recently, an e-mail from one of Toyota´s officials written five days before J! anuary recall reached the public. The main message of the internal company e-mail was rather clear: “We need to come clean.” "We are not protecting our customers by keeping this quiet," wrote Irv Miller, group vice president for environment and external affairs. "The time to hide on this one is over." Five days later, on January 21, the Japanese automaker announced the recall of 2.3 million vehicles due to sticking gas pedal. The e-mail gives an image of intense atmosphere full of doubts within the leadership of the company whose reputation has been gradually deteriorating. "We better just hope that they can get NHTSA to work with us in coming (up) with a workable solution that does not put us out of business," continues Miller in an e-mail. Recalls came at most inconvenient time as Toyota, similarly as other automakers worldwide, has been dealing with the consequences of the global recession. According the company´s statement, it could suffer losses up to ! two billion dollars from lost sales worldwide. The value of To! yota 0;s shares slumped as well. According to many, widespread media coverage of the problem only contributed to the increase in complaints and supposed accidents.

related story (sgx16957): http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_toyota_re...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share dig! ital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 12:17 PM