The series of recalls recently will divert Toyota’s attention towards earlier cars

If you list out some of the reasons for an auto company to grow and sustain growth – Quality, new car development and brand reputation would be there on that list. At least one of these would be right on the top of that list. At a very high level, I was thinking of the implications of recent recalls by Toyota on the company’s immediate future.

Let’s see, Quality is definitely under scrutiny after the recall. In fact, Toyota is being cautious and self scrutinizing its other car models. After the Prius recall, Toyota have notified the NHTSA (National Highway Traffic Safety Administration) in US that some of the 2010 Camry models could be prone to a leakage in the brake fluid. The NHTSA have also received complaints about the steering system on the 2009 and 2010 Corollas, which complicates the current situation.

New car development might also be questionable. With efforts (time, money, dealers, people etc etc) being invested in managing these recalls, it may be a case that new car development is on the back burner. Let us hope this is not the case. As of today, the company is spending much effort on managing the recalls of cars like the Camry or the Prius that are already generations old.

click through to read more

• Random Thoughts – Brake problems hit hybrids, Ford joins list
• Toyota focused on customer service in US
• Toyota Camry might be produced in India; Will cost 4-5 lakh cheaper as a result

Entry posted on February 15th, 2010 and filed under Toyota

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