Could Driver Error Really Have Caused the Toyota Car Disaster?

toyota driver error

Toyota investigation continues

Well known car manufacturer Toyota or more commonly known as “the bank” due to the approximate US$30 Billion it holds in cash, could finally be receiving some good news for a change.

Alleged recently leaked Government reports that are still to be made officially public have found the driver at fault and not the vehicle. Exact numbers are unknown as investigation still continues by the National Highway Traffic Safety Administration, into 3,000 reported cases of unintended acceleration.

Toyota the company has already paid dearly, with the recall of close to 8 million vehicles in the U.S. alone. Due to its initial slow response to the situation of acceleration problems the company was fined over $16 million and has spent many more hundreds of millions in trying to win back the buying public’s approval through the use of positive marketing.

The near future also looks gloomy for the automotive behemoth with the possibility of having to pay billions for class-action lawsuits being very likely. It has been estimated that the total loss so far is close to US$5 billion. Not to mention the company’s reputation has been severely damaged as a direct result of all these alleged vehicle problems.

The corporate structure of Toyota has been openly criticized as possibly having had a direct affect on the whole situation. Having a global company like this structured so all the strings are still pulled from Japan instead of any authority from corporate entities within each country.

This was cited as one of the main reasons for the slow response to problems and hence the multi-million dollar fine. Warranty issues are slow in reaching Japan and then must wait for a select committee to look over the problem and suggest a solution, which is then passed back to the country in question.

All this takes way too much time and reflects in substandard customer service practices. Toyota is now paying the price for practices such as these and the wish not to lose face back at home among senior vip’s.

Will the U.S. Department of Transportation take a little heat of the beleaguered company and help save some of its amassed fortune? Time will tell if all those drivers hit the gas instead of the brake, something which seems very unlikely.

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Posted by on Jul 13 2010. Filed under Business, Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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