Factbox: Toyota’s U.S. recalls rose with fast growth

March 25, 2010

DETROIT (Reuters) – Toyota Motor Corp’s <7203.T> displaced Ford Motor Co as No. 2 in the U.S. market in 2007, and the following year it unseated General Motors Co as the world’s largest automaker.

But barely a year after overtaking GM, Toyota was launching the first of its damaging recalls that would involve more than 5 million vehicles in the United States — almost three times the number of U.S. vehicles that Toyota sold in 2009.

President Akio Toyoda, testifying before a U.S. congressional committee last month, acknowledged the company had lost its way during a period of fast growth but vowed to steer it back to the values that made it a watchword for quality.

Here are details of Toyota’s U.S. sales and its safety recalls since 2000 based on data compiled by the National Highway Traffic Safety Administration.

Recalls Vehicles Recalled Vehicles Sold
2000 6 24,851 1,619,206
2001 7 231,807 1,741,254
2002 4 222,646 1,756,127
2003 5 207,708 1,866,314
2004 6 937,103 2,060,049
2005 8 1,358,936 2,260,296
2006 5 602,896 2,542,524
2007 5 605,828 2,620,825
2008 3 948,589 2,217,662
2009 9 4,600,303 1,770,149
2010 6 3,487,526 226,870
Total: 64 13,228,193 20,681,276
One comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Toyota’s sales have roughly doubled over the past 21 years. As a result of this increase in sales, the company has had to hire many new employees and suppliers. Toyota has produced quality vehicles because the company believes in the Continuous Improvement philosophy also known as the Toyota Production System (TPS).

With the rapid expansion and growth, it has been difficult for Toyota to adequately train the many new employees and suppliers in all of the methods associated with the TPS. As a result, quality has declined. Growth has trumped quality.

Tim Mojonnier

http://www.philosophiesofbusiness.com/bl og/

Posted by timmoj | Report as abusive