http://www.nytimes.com/2010/01/27/business/27toyota.html?emc=eta1
So, we were premature with our last post! This is unprecedented! Unless we go back to the 1982 Tylenol recall which J & J initiated because lives were lost, even though they didn't know what was causing those deaths. Here, Toyota is stopping everything even though they don't know what is causing the potentially life threatening situation. What would you do?
They have essentially stopped the production and sale of 65% of the Toyotas made here. We are unsure what they plan to do about the rest of the world.
We are mindful of the Barclays Capital observation that the Toyota gas pedal problem could reveal a danger of global parts outsourcing: "Toyota is known for using the same parts design across multiple cars and factories and countries which everyone is trying to emulate because it gives you economies of scale. What this shows is one of the risks of that strategy. When something goes wrong, instead of a couple-of-hundred-thousand-part recall you have a multiple-million-part recall."
Again, we are most hopeful that issue is resolved soon.
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Actually, from this article:
ReplyDeletehttp://www.safetyresearch.net/2010/01/27/so-who-called-toyota/
It would appear that Toyota was legally obligated to halt production and sales. There was a 4 day gap where Toyota apparently didn't comply with the law.
Pretty interesting.
Craig - That's interesting to me. I'm glad that there is a law that requires that. But, I think they were "ethically" required to make the decision they made and I'm not sure every company would feel that way.
ReplyDeleteI don't know, I think they knew of the problem way before it hit the fan. Its hard for me to imagine a company as big as Toyota not realising the problem or maybe they decided to do this so that they can get their bailout money as well.
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