Monday, February 22, 2010

Toyota Saved 100M by Limiting Recall


Toyota has recalled more than 10 million vehicles worldwide and is now sending president Akio Toyoda to testify before the United States Congress. Toyota executive boasted of the company saving $100 million by negotiating a limited recall for Toyota Camry and Lexus ES cars over a problem that could cause unintended acceleration. Toyota called an equipment recall to repair an "accessory" on non important part of the vehicle. However a month after the announcement of the recall, a family of four was killed in a Lexus with it's gas pedal stuck under a floor mat. NBC News criticizes how a "win" for Toyota means reduced safety for American motorists. However, Toyota is careful to get out of any further conflict. "Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality." They hope that this will shield the fact they wished to secure $100 million. Other examples of missing safety procedures to save money are phasing in new safety regulations for side air bags saved the company 124 million and 50,000 man hours. Delaying tougher locks saved them 11 million. It seems Toyota is more concerned about their financial standing than the safety of it's customers.

It seems that Toyota's bragging of saving money, but reducing safety measures has gotten many professionals irritated and irate. I believe they have the full reason to feel this way. Toyota should not care more about how much money they can save if it reduces safety in their cars. Toyota believes that gaining financially is more important than public safety and well being. They procrastinated and removed many safety features in order to save money and man hours of their workers. This seems, to me, unfair and selfish of the company. It seems they care more about themselves than others, which will only ruin their reputation as the top car manufacturer in the world. Also, the many fatal errors in Toyota's manufacturing may bring up lawsuits by their customers. If great enough, the money they saved from removing safety precautions could be replaced by debt from mass lawsuits. Is saving 100 million dollars really worth possible lawsuits, the death of innocent citizens, and a debilitating reputation? I personally, believe not.

http://www.thestar.com/wheels/article/769481--toyota-saved-100m-by-limiting-recall-report

No comments:

Post a Comment