Gm 588 - Final Project Proposal

Toyota Motor Corporation

Background/Overview of Organization

Toyota Motor Corporation is one of the world’s leading auto makers, offering a full range of models from mini vehicles to large trucks and even new concept cars. Toyota was established in 1982 through the merging of Toyota Motor Co., Ltd and Toyota Motor Sales Co., Ltd. Toyota engages in the design, manufacture, and sale of sedans, minivans, compact cars, sport-utility vehicles, trucks, and related parts and accessories primarily in North America, Europe, and Asia. In addition, the company provides retail and wholesale financing, insurance services, vehicle and equipment leasing, and other financial services, including credit cards primarily to its dealers and their customers. Key competitors of Toyota include Honda, Nissan, General Motors, Ford and Chrysler.

• Size of company: 317,734 employees

• Type of industry: Auto Manufacturers

• Product or service: Consumer Goods

Introduction to the Problem

As we all know, Toyota Motor Corp. has had a number of recalls. In this project I will be focusing on the recall regarding the sticky accelerator problem and the floor mat issue. The primary cause of Toyota’s recall was outsourcing their pedal manufacturing and assembly. Toyota has found the remedy to fix potentially sticky accelerator pedals in the recalled vehicles, but it is expected to take some time to complete repairs.

Identify the Quality Issues that need to be addressed

• Performance Issues – It means opportunity for the rest of the industry, while Toyota is wounded and rivals are going after it as much as they can like what GM did.

o Faulty parts - Toyota said sticking gas pedals were also causing sudden

acceleration by not springing back into idle position, triggering another recall.

o Floormats - Toyota last fall blamed the episodes on floor mats that entrapped

the gas pedals, leading to a massive recall.

• Customer Service Issues – David Sargeant, vice president of automotive...