Where Did Toyota Go Wrong?

Posted by admin on Sunday Jun 12, 2011 Under Toyota News

As I have been learning all of the wonderful tools and innovation that Toyota brought to manufacturing I am astounded to say the least. And up until now their quality was unsurpassed. What happened? I was reading an article from the Harvard Business Review by Sean Silverthorne on this very subject. Apparently, a significant contributor to this accelerator problem was Toyota leadership abandoned their quality driven system for increased market share. This wonderful thing called capitalism comes with an underlying price – manufacturer responsibility to the consumer’s safety. Toyota let themselves be lured by increasing market share instead of their customer first ideals. I wonder if the leadership seriously considering the long term consequences of this direction.

“The flush of catching up to Ford and General Motors, coupled with a boom in demand, led Toyota’s leaders to put sales growth above quality. Senior leaders became focused on becoming first in sales with a 15% share of global sales. This meant that new products had to be introduced more quickly, new plants had to be opened more rapidly, and supply networks had to be expanded more aggressively. We’re now seeing the consequences of those decisions.” – Learning from Toyota’s Stumble by Steven Spear

Another automaker that lost its credibility was Audi. “Volkswagen AG’s Audi luxury brand spent 15 years rebuilding U.S. sales after sudden-acceleration incidents in the 1980s almost wiped out demand, a possible sign of the difficult times Toyota Motor Corp. faces. Audi’s U.S. deliveries plunged 83 percent by 1991 from their peak in 1985 following recalls of the German automaker’s 5000 sedan. A class-action lawsuit in 1987 by Audi owners seeking compensation is still being fought.” Audi 1980s Scare May Mean Lost Generation for Toyota by Andreas Cremer and Tom Lavell.

Toyota was the industry example of how to run a manufacturing business at optimum performance. When they upheld Lean principles of the customer first in on all levels of their processes it was reflected in the quality of their product. Not just in production, but design and marketing. This Lean philosophy was translated into profit, brand loyalty and an impeccable reputation. They were truly a lean enterprise. I fear that they have now become just another automaker. Toyota is reexamining what made them great. However, it will still take years to recover from the brand damage now done.

Toyota is a clear example of what not to do when you have a successful business model. All companies can be what Toyota was and hopefully will become again. Before this recall Toyota had 15% of the global market. Amazing. On a local level, think of what is would be like to increase your market share just by doing things Lean. If you were able to set up best practices, reduce or eliminate mistakes, full utilization of staff, etc. how would that help you become an industry leader? The question to ask yourself is am I the Toyota of yesterday or the Toyota of today? This applies for service business too. Which one are you?

Cynthia Marsh-Croll

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Toyota’s Product Liability Issues

Posted by admin on Wednesday May 4, 2011 Under Toyota News

Toyota Motor Corporation’s product liability for unintended acceleration and braking problems, which has reportedly led to 10 million recalls and counting, would eventually be found to be manufacturing and/or design safety defects.

From the reported accounts of several accidents involving sudden acceleration and brake failure, the safety defects may, hopefully for Toyota, be limited to accelerator-pedal trapping floor mats, sticking accelerator pedals, and inconsistent anti-lock brake systems (ABS), and not include defective electronic throttle control systems (ETCS) or stirring systems, on Corollas, Camrys, and other Toyota models.

Toyota’s global recalls have included Prius and Lexus hybrids, which indicate that the safety defects related to unintended acceleration and braking problems are systemic in nature.

Indeed, Toyota dealers nationwide have reportedly begun fixing accelerator pedals on recalled vehicles by installing a precision-cut reinforcement bar into the accelerator pedal assembly to eliminate the excess friction that has caused pedals to stick on occasions.

Dealers will also place reconfigured accelerator pedals and newly-designed floor mats on affected models to remedy floor mat pedal entrapment, and remedy the inconsistent brake feel of the anti-lock system (ABS) in 2010 Prious.

Moreover, Toyota will install a brake override system that cuts the engine on simultaneous application of accelerator and brake pedals. Even as Toyota is implementing the brake override system, it asserts that it “is confident that no defect exists in the electronic control unit (ECU).”

Manufacturing Versus Design Defects:

A. Manufacturing Defects:

The manufacturing process of a product consists of the formation, assembly, adjustment, combination, or processing of raw materials or ingredients according to the product design, per CCH, I Products Liability Reporter, Section 4785.
Thus, manufacturing defects may arise from improper formation, faulty assembly or adjustment, incorrect composition, or defective raw materials or component parts.

Toyota has identified the manufacturing defect that causes sticking accelerators as the: “friction device that includes a ’shoe’ that rubs against an adjoining surface during normal pedal operation. Due to the “materials used, wear and environmental conditions,” these surfaces may begin to stick…. In some cases, friction could increase to a point… that the pedal sticks, leaving the throttle potentially open.”

In one of the early Firestone cases filed by this Author in August 1999, with the Superior Court of Los Angeles County, the left rear tire of the injured family’s Ford Explorer, a 1994 Firestone Radial ATX, had its tread along with one steel ply coming off completely all the way around the tire.

It caused the 1995 Ford Explorer running at 65 miles per hour on US 101 Freeway in Solvang County, Santa Barbara, California to run out of control and overturn, injuring a couple and their two minor daughters in a nonfatal accident in August 1998.

Bridgestone/Firestone Inc., settled before trial based on the expert report of Transamerican Consultant Engineers, Inc., obtained by this Author, which concluded that: “(T)he cause of the tread separation was due to a poor bond between the steel plies due to failure of the brass plating on the wires to completely fuse with the sulfur in the rubber during the vulcanizing process.”

That case exemplified the manufacturing defect of incorrect composition or defective bonding materials.

B. Design Defects:

The designing of a product consists of the selection of materials and their intended construction as to size, shape, inclusion, and arrangement of component parts, per CCH, I Products Liability Reporter, Section 4745.

Thus, defects in design may take the forms of inadequacies in the plans or specifications, in the choice of materials for the product composition, or in the absence of safety devices or features.

Toyota’s installation of a precision-cut reinforcement bar into the accelerator pedal assembly is a design safety device to remedy sudden acceleration. And its reconfiguration of the shape of the accelerator pedal and newly-designed floor mats are likewise design remedies to avoid floor mat pedal entrapment. Moreover, the installation of a brake override system is another design safety feature.

The placement of fuel tanks close to the rear bumpers in Ford’s Pintos in the 1970’s, which in a 1978 case in Orange County, California, caused the gas tank to explode in a rear-end collision, exemplified the design defect of inadequate plans or specifications.

Defective vehicle design was also at issue in the January 2002 roll-overs of a 1997 Ford Explorer SUV, which left a mother of two paralyzed from the waist down when the Explorer’s roof caved in.

The San Diego jury found that Ford knew that the Explorer had design defects that increased its propensity to tip over, as well as its inadequate roof strength. The U.S. Supreme Court let stand the $82.6 million award to the paralyzed California women, which included $55 million in punitive damages.

Conclusion:

A vehicle recall is an admission of a defect or defects, whether manufacturing or design or both. Hopefully, the recall of Toyota vehicles would cure the defects. And Toyota would be liable only for the reduction in value and loss of use of the vehicle while being fixed. Otherwise, it may be liable also for punitive damages if it knew the defects all along.

For accident cases resulting in bodily injuries or deaths for sudden acceleration and failure of the brakes, the plaintiffs need to prove by a preponderance of the evidence either manufacturing or design or both defects through reconstruction and automotive experts.

Toyota Motor Corporation through their own experts will need to prove lack of defects or lack of causation for the injuries or death, that is, the loss of control of the Toyota vehicle was due to driver error. The jury and the appeal courts in case of appeals from the jury award or defense verdict will decide the outcome.

Our adversarial system of deciding legal disputes in courts would hopefully do justice to whom it is due.

(The Author, Roman P. Mosqueda, is the holder of a 1979 Doctor of Science of Law (S.J.D.) degree from The University of Michigan Law School, with a published doctoral dissertation on comparative product liability. He practices product liability, among other areas of law, in Southern California, based in Los Angeles.

For comments please email to rpm_law@yahoo.com or call his office at (213) 252-9481. Please feel free to visit http://www.mosquedalaw.com to know more about the Author’s practice.

This article is not meant to give legal advice, but is for information only. The reader with specific product liability issues is well-advised to seek the services of a competent product liability attorney.)

Atty Roman P. Mosqueda

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Toyota Reeling Again From 2010 Prius Braking Concerns

Posted by admin on Thursday Apr 21, 2011 Under Toyota News

On the heels of their Sudden Acceleration Recalls, Toyota is now under pressure for braking issues on the Prius, Toyota’s popular hybrid. According to Ray LaHood, Transportation Secretary, Transportation officials will begin an inquiry after reports were received that the Japanese government has initiated an investigation in brake malfunction complaints, according to the Japan Automobile Dealers Association.

A Toyota spokesman in Japan indicated that the braking complaints received were involving situations where the drivers were on a bumpy road or frozen surface. According to one complainant on record at the National Highway Traffic Safety Administration (NHTSA), “My 2010 Toyota Prius has a serious braking problem, the car lunges forward after (I) apply my brakes over a bumpy surface. This is very unexpected and luckily no one was in front of me otherwise I would have hit them. This already happened several times, took my car to the dealer and no solution, I don’t know what to do with a brand new (car) like this.” There are many complaints with similar descriptions around braking/acceleration problems when encountering even minor bumps and potholes with the 2010 Prius.

Brakes in the Prius and other hybrids operate differently from those in standard cars. Hybrids use an engagement system between their braking system and electric motors to generate electricity for recharging the batteries along with standard brakes. The braking problems could lie within this engagement system.

This latest issue with the Prius is on top of Toyota’s recall of 3.8 million cars in November 2009 to fix accelerator pedals and software to address what has been reported as sudden acceleration problems. Toyota dealers were making modifications to the gas pedals by removing inches from the bottom so the gas pedals would not get trapped under the floor mats. Toyota then followed up that recall with another recall for sudden acceleration on January 21, 2010. On that day Toyota Motor Sales announced a recall of 2.3 million vehicles which included:

* 2005-2010 Avalon
* 2007-2010 Camry
* 2009-2010 Corolla
* 2010 Highlander
* 2009-2010 Matrix
* 2009-2010 RAV4
* 2008-2010 Sequoia
* 2007-2010 Tundra

According to a USA article titled “100 Toyota drivers filed complaints before recall”, “she would become one of more than 100 drivers, according to a USA TODAY search of the National Highway Traffic Safety Administration complaints database, who over the past few years have had their Toyota vehicles take off when they weren’t expected to.”

Apparently Toyota was not as aggressive at dealing with the issue as they have let on. According to LaHood, “The recalls involving pedal entrapment and possible sticky gas pedals on Toyota vehicles are some of the largest in automobile history. Every step of the way, NHTSA… officials pushed Toyota to take corrective action so that consumers would be safe.”…”Today, Toyota is apparently taking the right steps to address these safety issues. Unfortunately it took much effort to get to this point.”

During a Congressional hearing on Weds, February 3rd, the Transportation Secretary said that owners of recalled Toyotas should stop driving them until they are repaired. He was quoted as saying, “… stop driving it, take it to a Toyota dealer because they believe they have a fix for it.”

Toyota has stated that they have a solution to deploy for the accelerator issue, but there hasn’t been any official Toyota release regarding the 2010 Prius braking problem. Toyota’s U.S. sales have plunged 16% in January as an apparent reaction to the sudden acceleration recall, even as sales of other automakers rose. What the affect of this Prius issue will be, no one knows. It is apparent that Toyota’s image has suffered severe damage and we’ll have to wait and see how long it will take for it to recover.

To read an in-depth article on this situation from a 3rd party go to Consumer Reports article on the Toyota recall.

Albert Hunter

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Toyota Recalls the Prius Over Faulty Brakes

Posted by admin on Wednesday Apr 13, 2011 Under Toyota News

Amidst numerous concerns over its vehicles, Toyota has issued yet another recall. Previous recalls have focused on problems with the accelerators on a number of their vehicles, leading to sudden uncontrolled acceleration. These acceleration incidents have led to the deaths of multiple people. This time, the company is addressing a computer issue with the brakes on its popular Prius hybrid. Could the accelerator issues also be a computer problem?

In modern vehicles it is not rare for the brakes, steering, and even acceleration to be partially computer-controlled. Although some customers fear a loss of control to a computer, most of the time these systems actually increase the vehicle’s safety by responding to problems before the driver is aware of them. However, unless automobile manufacturers take extreme care, mistakes in these computer systems can have disastrous results.

As a hybrid, the Prius makes use of both electrical and gasoline-based drive systems to increase its fuel efficiency. One of several methods it uses to recharge its batteries is known as regenerative braking. When the driver hits the brakes, the vehicle stops the car by using its momentum to drive a generator. If the driver needs to stop suddenly, however, the computer must give control to a standard braking system. Difficulties switching between these two systems are what led to the most recent recall.

Steve Wozniak, one of the co-founders of Apple Computers and a long-time Prius enthusiast, owns dozens of Priuses and has claimed to have discovered a software issue that might be behind the acceleration issues. He reports that some vehicles can experience sudden acceleration without any input from the driver. And this is in addition to the brake issue that has already triggered the new round of recalls

The acceleration and braking recalls are a serious embarrassment for Toyota. Other automobile manufacturers use computer-controlled systems very safely. In fact, many European car companies have had systems in place for years that automatically prevent uncontrolled acceleration. Apparently this is too much to pay for Toyota, a company that has been gradually reducing the quality of its components for years to cut costs.

If you or someone you love have been seriously affected by a sudden Toyota acceleration or braking incident, you are entitled to seek damages for your losses. The compassionate and experienced personal injury lawyers of Habush Habush & Rottier are here to help you seek justice.

No one should have to suffer because of a company’s negligence. To discuss your case with a lawyer, call the acceleration injury lawyers Habush Habush & Rottier today.

Joseph Devine

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Can Toyota Survive the Acceleration Scandal?

Posted by admin on Saturday Jun 26, 2010 Under Toyota News

America is a nation on wheels. Car ownership is built into the fabric of America: most Americans are completely dependent on their vehicles for getting to work and running errands. For that reason, when a safety issue comes to light with a company’s vehicles, it should be taken very seriously. This is all the more true when America’s largest automobile supplier begins a massive series of recalls for vehicles that can accelerate out of control.

Understandably there has been a massive backlash against Toyota over these concerns. Sudden acceleration has led to a number of deaths and serious injuries. Although reports have trickled in over the years of drivers losing control when their vehicles suddenly accelerate out of control, it has taken Toyota until very recently to issue a series of recalls. The most recent series of recalls has extended beyond accelerators to braking issues as well.

Initially they blamed the unintended acceleration on faulty pedals that get stuck under floor mats. Since then, new information has come to light that suggest both mechanical and computer errors as the culprits. The braking issues, so far restricted to their Prius model, is reportedly caused by a computer problem. Having so many different problems, with so many different causes, will not help Toyota rebuild its reputation.

Toyota is one of the world’s largest automobile manufacturers, holding a significant market share in every part of the world. Even in America, it holds a larger share of the market than any other brand. In addition, it is the largest contributor to Japan’s economy: the largest contributor of taxes and the largest single employer. A massive blow to Toyota’s wellbeing will be felt across the entirety of Japan’s economy.

Nonetheless, any company that puts its consumers at risk should have to pay the price. If you or someone you love has been seriously injured because of sudden unintended acceleration or braking problems with a Toyota vehicle, you may be entitled to compensation for your suffering and losses.

The compassionate sudden acceleration injury lawyers of Habush Habush & Rottier are here to help you win the battle against reckless, profit-centric car manufacturers. To discuss your case with a lawyer, contact Habush Habush & Rottier today.

Joseph Devine

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