In the year 2010, Toyota recalled its vehicle products because the company realized that the vehicles had weaknesses. The gas pedals of the vehicles, it was reported, had the behavior of getting stuck and therefore causing the car to have an unintended acceleration. To fix this problem, the automaker, recalled its Toyota vehicles that were sold in the United States of America. Approximately, four million cars were recalled. This was a second recall by the company. In November the previous year, the firm had recalled its Toyota products because the vehicles had faulty floor mats that were capable of trapping the pedals. During this product recall, about five million vehicles were returned to the company. Today, nearly nine million Toyota vehicles have been taken to the company for the fixing of the problems.
The Toyota vehicle recall had negative impacts on the company. One of the consequences of the recall is that it lost ground to one of its competitors, General Motors. To that end, the firm lost several sales to General Motors Company because people were more willing to purchase vehicles from GM than Toyota Company because of the notion that the cars from Toyota had several flaws. To that end, GM captured the significant share of the market. Regarding the finances of the company, Toyota Company lost a lot of money that it used in the repair and the fixing of the vehicles.
Similarly, the Toyota vehicle recall had negative impacts on the people who had purchased the vehicle. To begin with, the client’s time was wasted because the exercise of retrieving the car involved returning of the car for repairs and fixing of the pedals. Besides, people started questing the safety of Toyota cars, and thus some of them subscribed to the opinion that the vehicles were not the best model.
(2017). Retrieved 29 October 2017, from http://ww.nj.com/business/index.ssf/2010/02/toyota_recall_could_cause_shor.html