As one of the most prominent motor vehicle manufacturers, Toyota’s reputation has been tested as they continue to recall 437,000 2010 Prius hybrid models. The recalls are a result of problems to do with the braking system and the gas pedal sticking or lagging. Toyota claims to have a solution to this problem, an ‘easy’ fix that has to do with the anti-breaking system; however, it does pose other significant problems. The sheer amount of vehicles that need to be recalled creates a challenge of acquiring the cars and then transporting them to locations where they are fixed all the way to delivery back to the initial consumers. This obviously creates a large cost that the company must bear. Just like any other company that experiences large recalls, the publicity destroys and tarnishes their reputation. The stock price for Toyota fell 20% in January after the announcement of the recalls. To make matters worse, the President of the company, Mr. Toyota, has been criticized for his lack of involvement into the issue and his slow response. This issue deals with problems in the manufacturing all the way to the organization of the company and it must be addressed if the company wishes to regain its reputation.
Thousands of these cars are being recalled
http://www.theglobeandmail.com/report-on-business/toyota-recalls-437000-prius-hybrids-globally/article1460824/