Saturday, February 27, 2010

Toyota's philosophical flaw

Writing From Tokyo – Toyota has built a strong presence in the United States by serving its consumers well and doing what the U.S. government has wanted. Now it has stumbled badly largely because its greatest strength — the Toyota way of “accumulation of small improvements,” or kaizenkaizen philosophy — has turned out to be a weakness in the age of complex electronic engines.

There is every reason to believe Toyota will fix its technical and management problems. The question is whether, panicking in the very un-Japanese glare of the American media and political spotlight, it will dig a deeper hole by losing the trust and reputation for competence among its customers. That would be bad for Toyota, and for America.

Most auto companies in the past, including Ford and GM, have had recall problems. They all seem to try to hide the early evidence of flaws, even if they affect safety. Recall General Motors’ Chevrolet Corvair and consumer advocate Ralph Nader’s “Unsafe at Any Speed” campaign against it in the 1960s.

Today, however, with electronic programming of cars, many of the problems emerging — such as the braking system of the Prius — are of a new nature. They are judgmental engineering calls. If they can be corrected by readjusting the setting on recalled cars, Toyota can handle that quickly.

But what we are seeing may be a more fundamental problem that has to do with the engine control unit as a whole. In an average Toyota, there are about 24,000 inputs and outputs, with as many as 70 computer chips processing information and sending it on to other chips to operate the engine control units. It is a very complex system.

Such complex systems are a problem these days for all auto manufacturers — Germans and Americans as well as Japanese — because about 60% of a modern automobile is electronics. Toyota is the canary in the coal mine, so to speak, because it is the world’s largest manufacturer of cars, with more than 50 plants around the globe outside of Japan. Toyota has more models on the road than any other carmaker.

What we see with Toyota in particular is that this new electronic complexity has overwhelmed its concept of kaizen — continuous improvements — that has made Toyota such a high-quality brand worldwide. This company has so perfected the practice of kaizen from the assembly line on up that it has lost the big picture of how the whole electronic engine — and thus overall safety — works.

If Toyota does not recognize this and tries to chalk up all of its problems to floor mats touching the accelerator or a computer glitch, it will miss the real issue. Where Toyota has failed is that rather than review the overall safety of the engine operating unit, it has focused on diagnosing the function of many thousands of pieces of an electronic engine.

What this company is missing is the human factor — a single person who has a comprehensive understanding of the details of the engine and how the parts interact and work as a whole.

In the old days, one chief engineer designed everything. This was also true with ships and airplanes. Now, design and production are broken down into so many details that there is no one in the current generation of Toyota engineers who seems to have the whole picture. A 45-year-old engineer at Toyota today would have spent the last 25 years working on “the accumulation of small improvements.”

What this suggests is that Toyota has to come up with a new organizational ethos beyond kaizen that can oversee the crucial safety features that may have been compromised by so much incremental improvement over the years. This is a philosophical problem of management, not a technical issue. A new system of “man and machine interface” needs to supplement the kaizen philosophy.

I believe Toyota can meet this challenge. The challenge I fear it will fail to meet is the psychological one, enveloped as the company’s leaders seem to be in a sense of panic at being attacked politically and in the media in their most lucrative market, the United States.

For the modest and taciturn Akio Toyoda, whose English is only passable and who has difficulty finding the right words, to testify in front of the U.S. Congress invites the wrong impression: There is such a clash between aggressive American political and media culture and reserved Japanese ways.

As America brings Toyota to account on safety, it must also put the company in the right perspective. Toyota has also always done what the American market and politicians demanded without losing quality or productivity. The U.S. asked Toyota to come to the U.S. to produce cars instead of export them from Japan, and use up to 50% local content.

Today, 2.5 million cars are produced annually in the U.S. at several plants; this has created thousands of jobs. Toyota’s annual spending on parts, goods and services from hundreds of U.S. suppliers totals more than $22 billion. Ninety-five Japanese component companies were transplanted from Japan to supply Toyota through its “just in time” manufacturing process, building a supply network along the Mississippi Valley that didn’t exist before.

Toyota is on the hot seat today. But everyone should understand that the issue at hand is the trade-off between complexity and safety in an age in which electronics and computers dominate the vehicles we all use on a daily basis.

Kenichi Ohmae is a prominent management consultant in Japan and the author of numerous books, including “The Mind of the Strategist” and “The Borderless World.” His comments are adapted from an interview with Global Viewpoint Network editor Nathan Gardels.

[Via http://lanle.wordpress.com]

Thursday, February 25, 2010

Obama To Invade Japan To Fix Toyota Problems

Washington—Worried over the public safety of millions of Americans, President Barack Obama has plans to invade Japan in order to fix the rampant incompetence found at Toyota.  With no answers coming from the Senate Commerce Committee investigations, Obama has ramped up his unprecedented efforts to keep the American driver safe behind the wheel.

The crisis at Toyota has affected thousands of Americans.  These Americans, many of whom can’t seem to find the turn signal indicator, demand that the federal government “do something” to prevent them from having future accidents.  According to many of these Toyota victims, the government hasn’t acted swiftly enough, and their once, peaceful life, has been scarred from a “sticky” accelerator pedal.

One such person is Shirley Birmingham, a 24-year old waitress from Bilioxi, MS. She has driven a Toyota Corolla for years.  Because of her claims of a “sticky accelerator pedal,” she has received 10 speeding tickets, been involved in 5 accidents and had her license suspended twice.  She is optimistic, though, that Obama can fix her problem. 

With a Kleenex, she gently dries the tears from her eyes.  “I am confident that my days of Toyota terror are over,” Shirley sobs.  “I haven’t been able to afford anything but a Toyota.  And now, Obama has given me hope that I can drive with confidence.”

Shirley is just one of the millions of people that Obama must protect, and his swift and decisive action to invade Japan is just the kind of leadership they need.  Experts, however, argue that there simply isn’t enough troops to accomplish the mission.  But Obama’s plan is simple, pull all of the troops out of Afghanistan and Iraq, and send them into Japan.

“What we’re going to do here,” stated Barack Obama, “is withdraw from both Iraq and Afghanistan, put the troops on a boat, and hit Japan hard and fast.  We’ll be in Tokyo Bay in a heart beat.  We’ll take over the Toyota plant, and have things done right.  No more outsourcing.  Just like my healthcare plan.  There’s nothing I won’t do to…I mean for the American people.”

[Via http://electivedecisions.wordpress.com]

Toyota concerned flex-fuel mandates could cost it $600M yearly

David Shepardson
Washington Bureau
Detroit News

Washington — Toyota Motor Corp. executives worried last summer about what it perceived as an emerging uneven playing field in the United States, and said new fuel requirements could cost it up to $600 million annually.

The concerns were included in the release by the House Oversight and Government Reform Committee of what appears to be the complete, 28-page version of a now infamous memo prepared for the company’s new North American president Yoshi Inaba in July 2009 — on his second day on the job.

Other parts of that presentation became public earlier this week, and revealed the automaker as bragging about its success in avoiding or delaying costly regulatory actions, including widespread safety recalls.

The newly released pages reveal the depth of Toyota’s concern over flexible-fuel vehicle mandates. Flexible-fuel vehicles can run on traditional fuel blends or E85, which is made of 85 percent ethanol and 15 percent gasoline.

Toyota said flex-fuel mandates could cost the company $200 to $300 per vehicle — or $400 million to $600 million annually.

The presentation featured a photograph of President Barack Obama and included a quote from his campaign literature:

“Barack Obama and Joe Biden will work with Congress and auto companies to ensure that all new vehicles have FFV capability.”

The presentation noted that Toyota had avoided the requirements so far.

One recommendation 

made by Toyota’s Washington office, to accelerate decision-making in the United States, appeared to go unheeded. The National Highway Traffic Safety Administration was critical of the inability of Toyota officials in the United States to make decisions, saying it often took too long to get decisions from Japan on recalls and other issues.

The Toyota internal presentation urged establishment of a “small senior exec. group in U.S. to make timely decisions,” and initiate action on legislative and regulatory issues. It also noted the benefit of having engineers in Washington.

“Many issues require immediate (or near immediate) response,” the presentation said. “Provide quick response based on daily communication with (Toyota in Japan) and … to educate lawmakers to have reasonable legislation and regulation.”

Toyota said this week it is adding more engineers in the United States and at least three new engineering centers.

Other newly revealed parts of the internal presentation explain the company’s concerns about the $85 billion auto industry bailout.

“Government $ for GM/Chrysler,” the presentation read. “Not a level playing field.”

The presentation said there were “adverse implications” for Toyota of government support for bankrupt GM and Chrysler.

Ironically, Japan is considered one of the world’s most closed markets for non-Japanese automakers.

The presentation noted that Ford Motor Co, Tesla Motors Inc. and Nissan Motor Co had received $7 billion in Energy Department retooling loans.

Toyota executives also were worried about “Buy American” attitudes being “on the rise,” as well as import taxes, border tariffs and support for auto suppliers.

The company fretted over the impact of new consumer financial regulation on its lending arm, Toyota Motor Credit.

dshepardson@detnews.com (202) 662-8735

From The Detroit News: http://www.detnews.com/article/20100225/AUTO01/2250447/1148/Toyota-concerned-flex-fuel-mandates-could-cost-it-$600M-yearly#ixzz0gZ6suGEq

[Via http://applechevy.wordpress.com]

Mr. Toyoda, A Class Act, Saves Face

Mr. Toyoda, a Class Act

 Telling the Truth, what at a New Concept.   While taking a break yesterday afternoon I saw a Class Act on TV.  It was the President of Toyota, Mr. Toyoda, grandson to the founder of the company.  He came to the United States to speak to Congress about the 3 recalls Toyota is in the middle of.  No one forced him to come here; he could have sent someone from his company.   Yet, he chose to come and speak on behalf of himself and his company. 

He started his speech in English, and though I would have thought with the money his family has had and his upbringing that his English would have been better.  But I soon realized that the fact that he didn’t speak English really well didn’t matter at all.  It was what he said that made all of the difference.

 He first introduced himself as the grandson of the founder of the company.  He went on to say that he wanted to apologize for any deaths caused by any car that his company made.  He was genuinely sincere.  You could actually see the concern, on his face and that he was sad for the victims and their families.  He took complete responsibility.

 He continued on about how his company has always stood for quality, and he felt that because the company expanded at too fast of a pace in the last couple of years, and that they did not keep up with the training of employees, concerned with customer service. He again asked for forgiveness.  He said this was being addressed right now.

 He went on to say that his company has the same name as his and if they do something wrong it is as though he did something wrong.

 He then continued his speech addressing what his company, Toyota has already done to correct the situation, and what they are planning on doing in the future.  Toyota has already set a date next month for a Meeting, inviting a representative of the US to participate.  They will discuss how the recall will be handled going forward and what the company will do to basically make sure these things don’t happen again.

 All in all by the time this man, Mr. Toyoda finished his speech, there was hardly anything for Congress to ask him.  He covered everything, and quite satisfactorily, before they had a chance to basically attack and devour him.

 Smart man this guy is, not only did he come to the US on his own, he anticipated everything Congress would ask him, and answered the questions before they were asked.

But he didn’t just give us a bunch of half-baked excuses; there was no doubt on my part that this guy meant everything he said.  He basically took the wind right out of Congresses sails. 

 The Japanese have always had a sense of Dignity, which seems to be a part of their inner being.  This Mr. Toyoda, came across as a man with so much Class, so much Honor, that not only was it believable it was amazing to see such a site in the halls of Congress much less Washington DC.   By the time My Toyoda was finished with his speech, he had taken complete control of the situation. 

There was no blaming anyone else. I thought to myself, “Oh my God, when is the last time I saw anyone testifying in front of any Congressional committee and actually sound so sincere and truthful”?  Then I answered myself,  “Ollie North”, and that’s it.

 I think the people who attended this planned witch hunt, which did not happen, were in shock and probably a little angry because Mr. Toyoda was more than one step ahead of

these guys.  There would be no yelling, ranting or raving.  He gave them all the answers they would have been asking him and looking for, without letting them, humiliate, belittle and embarrass him for the sake of the TV camera’s and some votes back home. 

The Japanese certainly did not lose face today. 

[Via http://snappysandy.wordpress.com]

Washington D.C.

As you all know, I have been in D.C. this week with Farm Bureau.  I had a lot of exciting opportunities while I was up there.  This was my third trip to D.C., but it was much different than before.  First off, I toured everything once again.. but got quite the shocker on the steps of the Lincoln Memorial.  As I was making my way down the front steps, I saw a huge group of Asian people.. probably 300 or more.. and they were taking a picture on the steps, directly in front of Lincoln.  Well, when I stepped in front of them, I noticed they were holding a huge flag from the People’s Republic of China!  I seriously bet Lincoln rolled over in his grave! I couldn’t believe it.  But anyway.. that is my first story.  Okay, so.. in the days after that incident, I attended a lot of hearings.. and listened to KY’s Senators and Reps speak about the different issues plaguing our country right now.  I am terrified of what is in store for America if this health care bill passes, as well as Cap and Trade.  Asia isn’t backing down.. and it seems like our country is.  I’m afraid that if Americans don’t wise up and gain their previous spirit, China and India will surpass us.

Anyway, today I visited the Capitol Building.  It was quite interesting.  As I was walking into one of the side buildings as an entrance to the Capitol, I stepped by a white van, as two or three Japanese men were getting out.  I stopped and stood beside the van, as Luke and I noticed they were the Toyota guys!  After being rushed into the Capitol and through security, I got to see tons of Japanese reporters waiting for Toyoda to come in.. and when he came in, I got to see him!  I watched him be escorted into the room that I was standing by.  I’m pretty sure that I was on national new tonight lol.  I looked pretty darn professional too, in my new pant suit :)

Aside from that, my trip to D.C. was the same as previous ones.  I’m not entirely sure that I still want to go into politics.  It’s a rough, greedy, dirty game.  I know most people have good intentions, but they’re sending our country down the wrong path right now.  Who knows.. maybe if I do go into politics, I can fix some of the problems facing our country right now.

On another note.. I’ve had the opportunity to do a lot of thinking within these past few days.  I feel the need to apologize to some people who were once dear to me.  I let them down, majorily.. in the short time I knew them. I regret what happened, and I need to make amends.  Therefore, I will be starting on a few letters tomorrow.  Hopefully in time, they can forgive me.

[Via http://jannalynnimel.wordpress.com]

Tuesday, February 23, 2010

Do you manage your organization culture, or does it manage you?

Toyota has been recently under fire due to its recalls and quality issues. It is drawing additional attention because Toyota brand used to represent quality. What happened? Quality and industry experts suggest that Toyota management veered away from its own corporate culture based on respect for people and continuous improvement – the Toyota Way – and it’s now paying the price. Organization culture is such a nebulous concept. The visible parts are quite obvious for the new comer, such as the dress code, how punctually meetings start, or how fast paced the work is. But the invisible norms and values you have to learn over time, e.g. how people work together, how they share information, and what the level of trust is between people and departments. Every organization has a culture, whether it’s stated or not. Sometimes the articulated culture in printed brochures can be in conflict with the actual informal culture. When this happens, the leadership efforts to manage the culture lose credibility. It’s fine to be aspirational in culture statements, but it’s not OK to be totally clueless. The steps to manage organization culture are these: 1. Assess the current culture. Know the baseline. A combination of focus groups and surveys typically accomplish this task most efficiently. 2. Articulate the desired culture. This should have a connection with the organization’s vision, with respect for its past. The desired culture is often a mixture between realistic description of the actual culture and the description of the ideal culture where the organization is striving for. 3. Weave the culture into everyday actions and decisions. Start with the selection and promotion criteria. Reinforce it in all training and development. When people are recognized, it is done based on the cultural values. In any organization, employees note that resources are allocated on the most important priorities. Thus, resource allocation should also be true to the cultural values. 4. Measure the culture development. Do frequent checks on how your workforce perceives the culture. Annual surveys are a good yardstick to create trending data. At the launch, you may even measure the culture twice a year, as long as you are prepared to act on the survey feedback. Equally important as strengthening the culture is to be aware of actions and decisions that are counterproductive. Every time a decision is made where the cultural values were not used, it puts into question the organization culture. For example, if a company declares that work life balance is one of its core values but frequently recognizes employees who put in long hours, it contradicts its own values. Or, if a company who promotes a customer-focused culture cuts customer service resources before touching other departments, it may have to rethink its priorities. Usually, compromises and tough times bring out the true colors. Those that are true to their values will have a guiding star for their decision making and will be able to make consistent decisions and strengthen their external brand as well as their employment brand.

[Via http://forteconsulting.wordpress.com]

Changes comming soon

Hello everyone!

I’d like to thank those of you who have been loyal readers thus far.  The blog has been doing quite well, and I’m often surprised to see the spikes in visitors even when I’m not posting.

I’d like to do more with the blog, and I think my title has limited me thus far.  While GM has made some huge changes, there is so much going on in the auto industry right now, with the Toyota recall, Ford’s dramatic rebirth, and everyone else trying to stay afloat.

I’ll be launching a new site soon; both will be linked together so you can still access me from here, but my content will be going more general.

If you have any suggestions for the title of the new blog, please let me know.

[Via http://johnvrbanacforgmceo.com]

Toyota Sales Department

The latest, according to the Financial Times:

Embattled Toyota Chief Agrees to Testify “Akio Toyoda, Toyota’s embattled chief executive, agreed on Thursday to appear before a US congressional committee investigating his company as lawmakers stepped up their scrutiny of the Japanese carmaker with a subpoena for documents held by one of its former attorneys.

Mr Toyoda accepted a formal request, issued by the Democratic chairman of the House oversight committee, Edolphus Towns, to appear at a hearing next Wednesday.

“I look forward to speaking directly with Congress and the American people,” Mr Toyoda said.” -more

When I was a kid, something that was “made in Japan” was shoddily built and unreliable …while American-made goods were reliable.

Read More Dry Bones by Yaakov Kirschen

[Via http://papundits.wordpress.com]

A Quick Thought on the Toyota "Situation"

First of all, I think its pretty apparent at this point that the U.S. Government, and to a (slightly) lesser extent, Media, have taken this Recall thing way too far.   As several outlets (that I’m far too lazy at the moment to collect/summarize) have pointed-out, virtually EVERY auto manufacturer has recalls EVERY year.  While Toyota certainly could have been a little more proactive, compared to their peers’ responses to similar issues (some even worse, with less press!), I think the’ve done a pretty respectable job.

I’ve been hearing far-too-much that Americans should make a concerted effort to buy “American” cars (read: Chrysler, Ford, GM) to support their (er, our) unemployed countrymen and women.  Combined with the actions taken by Congress (DoT, etc), summoning Toyota CEO Akio Toyoda to Washington to answer for his sins, I’m afraid this silliness may actually be gaining traction, if not widespread adoption.

The fact of the matter is that granted, it could be worse (*shudder*),  lost on most observers is that Toyota makes more cars in America than Chrysler.  That’s right.  According to the International Organization of Motor Vehicle Manufacturers, Toyota made 1,117,409 vehicles in the U.S. in 2008 to Chrysler’s 1,106,028.  Ford (from what I can tell, including all domestic brands) makes 1,602,011 cars in the U.S., although the report suggests less than 100,000 of them are actually Ford branded.  For even more of an idea how important domestic (U.S.) manufacturing by foreign Automakers is to our Nation’s economy, check out the Cars.com American-made Index.  Half or more of their lists are dominated the likes of Toyota, Honda, etc.

The media and government need to slow their roll, because if several get their wish, and the populace truly does “buy American”  in the traditional sense, it would be a classic case of cutting off our nose to spite our face.  Sure, the Government’s investments in GM and Chrysler could benefit, however, the last thing we want is Toyota (etc) firing tons of workers when no one buys their cars anymore.

*I deserve a medal for using “The Situation” in the headline without a picture of “The Situation,” no?

[Via http://stonestreetadvisors.com]

Sunday, February 21, 2010

Is Crowdsourcing Sustainable?

Image Source: Google Images

I will talk about two concepts in this post: social media etiquette and how novel is crowdsourcing- exploiting the groundswell for ideas (Groundswell, Li & Bernoff).

Social Media etiquette is not detached from other forms of etiquette, in fact closely related to email etiquette. Search engine optimization vendor, Digital Labz lists the top 11  rules of social media etiquette on its blog . The one that stuck with me most was ’stop pushing the envelope’. It’s true that organizations are trying to reach out to publics, requesting for connections (expecting fans on facebook) etc. However, if you ask for too much from your publics there is a potential for them to completely shut you off. The other extreme is when organizations dive into the groundswell but fail to keep up with their publics’ enthusiasm or simply get distracted by apparently more pressing projects. A particular case in sight is Toyota\’s USA Newsroom which was last updated by the company in December ‘09 clarifying its position regarding a media attack from Los Angeles Times. Over 200 comments have been posted by Toyota enthusiasts who strongly express their solidarity for the company till today but there are no acknowledgments or responses from the company! Clearly Toyota is not listening, preoccupied dealing the recent product recall crisis! This would surely not score high on a social media etiquette scale.

The other concept I want to discuss is crowdsourcing. Groundswell described how Credit Mutuel the French bank used crowdsourcing to establish its slogan – “the bank you can talk to” and harness ideas for improving its products/services. However, real success will be achieved if the bank can continually engage and respond to its customers who have enthusiastically providing ideas. I would argue though that crowdsourcing is not a completely novel idea, its just that this time around Web 2.0 is the tool for engagement. I remember as a child excitedly sending Kwality Walls survey forms to suggest how I would want my favorite ice cream to taste or a campaign by the popular cosmetic brand in India Lakme that seeked its customers to design the lip color they desire. The campaign was quite successful as shades suggested by customers were developed and launched in the market.

Outsourcing ideation to customers thus is not a novel concept it’s just that now its done via social media. However, crowdsourcing has its limitations as customers are not experts on product development, legal bindings, quality considerations and market norms. There can be only limited application of crowdsourcing.

Do you see crowdsourcing as a sustainable method of ideation?

Thank you

[Via http://paromitag.wordpress.com]

Saturday, February 20, 2010

Roundup

Roxanne asks on FaceBook:

If nearly 75% of tea party activists attended college, compared to 54% of Americans, how is it that we are the uneducated rubes that the liberal media keeps telling us that we are?

Why don’t pro-choicers support school choice?

Check out Stand to Reason’s new teen site — great stuff.

Quote of the year, so far:

If I could create one job in the private sector by helping to grow a business, that’s one more than Congress has created in the last six months. Sen. Evan Bayh (D)

Caught on Video: Obama Brazenly Lying About Relationship With ACORN – surprised?

Unholy Trinity Guns for Toyota — good analysis on the overreaction of the government to Toyota as compared to similar safety issues with GM.

Pro-Lifer Faces Knife, Saves Life of Unborn Child – did you catch that on the mainstream media?  Not likely.

[Via http://4simpsons.wordpress.com]

Thursday, February 18, 2010

Toyota's Cross-Cultural Blunder and How it Lead to Their Fall from Grace in the Eyes of the American Public

This link related to the issue of Toyota’s falling from grace is really worth a look. Interesting issue regarding the recall, but the more interesting issue to me (given my work in the cross-cultural training and consulting arena) is why there seems to be a lack of insight relative to the communication issues between a Japanese company,focused on the concept of “kaizen,” and the American consumer, focused on the concept of “transparency.” A quick consult with a cross-cultural specialist would have averted the trust issue by advising Toyota to “come clean” much earlier in the game, own up to a mistake which was a relatively easy fix, and move on as the squeaky clean, honest manufacturing protecting its customers.

[Via http://denisehummel.wordpress.com]

Sittin’ At Home…

Just like last week there’s no Starbucks tonight. I’m saving that for tomorrow night when I need to be awake for Project Runway and Johnny Weir’s free skate. Here’s what’s on my mind this wonderful Hump Day:

GOOGLE: You seriously fucked up when you rolled out Google Wave when you made it compulsory for Gmail users to activate it whether they wanted to or not. That was a huge breach of privacy and to the best of my knowledge was against the law. As of this writing, you have not done enough to remedy those whose privacy has been compromised. Therefore I have deleted my account and uninstalled Chrome as my browser.

In other words, piss off.

JOHNNY WEIR: You skated an outstanding short program last night and I’m still steamed that the judges docked you points for being yourself. As a person of color and as a bi male, I know how this is supposed to work but don’t let those judges or the U.S. Skating Federation keep you in line. Don’t stop being yourself and I hope you get to cash in on a pro contract after the Olympics because that’s where your artistry belongs.

TOYOTA: Failed brakes. Stuck accelerator pedals. Bad steering. Can’t you guys make a decent car anymore? Or are you guys trying to murder your loyal customers?

CALIFORNIA DEMOCRATS: Is Jerry Brown in or out? Meg Whitman is running unopposed for governor in the court of public opinion, and the longer your party stays on the sidelines the harder it will be to win in November. Find a candidate and get in the race before its too late.

UC-SAN DIEGO: Students, this is not how you celebrate Black History Month. Is this an isolated incident? Based on what I’ve read in your student newspaper, I would find it very difficult to recommend your school to anyone whose skin color is darker than ivory.

JOHN MAYER: I’m very disappointed in you. Get some help for your David Duke cock, and where’s the apology to the LGBT community?

ALEXANDER McQUEEN: You left us way too soon. I’ll miss you for your wild designs. Even the 10-inch stilettos that looked like hooves or lobster claws.

VIRGINIA GOV. BOB McDONNELL: Why do you hate the LGBT community? That’s the first question that popped in my mind after you stripped our protections with your latest executive order.

[Via http://greetingsfromsocal.wordpress.com]

Tuesday, February 16, 2010

Transparency in the Social Media World

Because of the nature of social media, companies can no longer afford avoiding their mistakes. There is an inherent sense of vulnerability that comes with joining the digital world, and I think companies are finally starting to recognize the need to be transparent.

Take Toyota for example. When the recalls first began, they were criticized for not being sorry enough. Next thing you know, they put out a commercial in the U.S. admitting they weren’t living up to the Toyota reputation, and are dedicated to not only fixing the problem, but determined to restore America’s trust in the reliability and quality of their products.

Dominos is taking the same approach. Although their recent campaign has caused a bit of controversy, no one can deny the courage it takes to admit your sauce takes like for Ketchup and your crust taste like cardboard. And as a result of their honesty, not only has there been some significant buzz, but people’s curiosity seems to be encouraging them to try the new pizza out.

For so long everyone tried to avoid airing their dirty laundry, and for the most part, it worked. There simply weren’t as many channels for consumers to share their experiences and opinions. Enter social media. Never before have consumers had so much power, and its forcing companies to listen to their customers and man up to their mistakes.

We recently had a customer of ours post a negative YouTube video. He was upset with the way one of our fabricators was packaging our products, which was causing damage. We acted immediately by calling the customer directly to discuss the problem and ultimately resolve it. The very next day that same customer posted another video singing our praises for listening to his concerns and acting upon it. He now is a dedicated advocate for our products and our brand.

Being honest is key in any functional relationship. Social media helps companies recognize this.

(Image courtsey of http://www.ideachampions.com/weblogs/the_next_step.jpg)

[Via http://ashleylumm.wordpress.com]

I Have Your AE86, Takumi!

So there is a little manga series called Initial D.  You may of heard of it, or quite possibly, you may have not.  If you are one to enjoy Japanese cartoons (manga), automobiles, racing, drifting, rad characters and/or a touch of romance, then Initial D would be right up your alley.  Whether you read the manga or watch the anime, I suggest you give it a shot.  It’s gotta be one of my favorite manga/anime series that I’ve completely involved myself in.

Oh yah, there is even a live action movie based on this series.  Though, sadly enough it doesn’t stick to the canon as well as I would have liked and combines multiple characters into one uber character, but it’s still a great ride nonetheless.

But enough of that.  My main goal today is to show you a beautiful thing.  Something, that if you’re like me, you would be unable to break the stare fixed between this object and yourself.  It’s essence and aura just draws you in.  It’s, how should I say, inescapable.

While I toured around Tokyo, I made my way to Ikebukuro.  I know this area is famous for it’s Sunshine City which is lined with many shops, restaurants, game centers and other forms of entertainment.  Very close to Sunshine City was something even just a little more special in my heart.  This place, the Toyota Showroom Amlux.

I love cars.  What can I say?  I may not be the most technical person when it comes to car knowledge, but I appreciate their beauty and sheer glory.  Vehicles are so much more to me than just tools to reach a destination.  They need to be understood and sometimes, feared just a little.

When I stepped into the Toyota Amlux I was greeted by something so unexpected, that it should really have been expected.  I don’t think anything could have been any better.  Well, perhaps if Bill Murray had been there to give me a high-five.  Then yah, that would have made my arrival a perfect one.  S-Rank worthy for sure.

I’ll just get on with it.  If you know Initial D, you know who Takumi is.  If you don’t, then let me say this.  He’s the guy you’ll come to love.  You’ll cheer for him, you’ll be amazed by him, and you’ll even cry for him.  Takumi is one of my favorite characters just because you see him from so many angles.  Oh yah, he also drives a Toyota Sprinter Trueno.  *\(^_^)/*

The cup of water in the cup-holder is a direct reference in Initial D.  Takumi used a cup full of water to help him perfect his drifting abilities.  His dad, Bunta, came up with the idea.

*Fujiwara Tofu Shop

Yup!  That’s me and one of the coolest cars I’ve seriously ever seen.  Sorry Lambo, but this is just too cool for you.

I hope you enjoyed looking at this gorgeous looking piece of fine machinery.  n_n

I give the Toyota Showroom Amlux 10 SSS Ranks out of 10.

TAKUMI!!!!!!!!!!!!!!!!!!!!!

[Via http://tictaek.com]

Sunday, February 14, 2010

Automakers & Socrates

Portrait of Socrates. Marble, Roman artwork (1...

Image via Wikipedia

While Toyota’s woes are the big news, there are numerous other cases of companies inflicting defective or dangerous products onto the public. In the case of Toyota, there also seems to be some evidence that the government was aware of the problems for quite some time, yet acted in ways that seem contrary to the public interest. Toyota has also been accused of covering up problems.

Of course, Toyota has paid for these actions. Millions of vehicles have been recalled for repairs and consumer confidence has been shaken. In my own case, I bought a Toyota in 2001 based largely on Toyota’s reputation. While the truck has worked out well for me, I cannot say that I would buy a new Toyota today.  I suspect many other people are also wary of the company now.

Given the damage caused by such problems, one wonders why companies do such things.

In regards to problems with cars, the answer can be both simple and honest: cars are complex machines and can have various problems that do not become evident until they are exposed to a wide variety of conditions. Such potential problems are simply part of the nature of an imperfect world.

Of course, this cannot be used as an excuse across the board-eventually a somewhat vague line is crossed and a corporation can be justly regarded as producing a defective product. For example, I do accept that my PC might have problems if I attach certain peripherals or load certain software. However, if my video card catches on fire due to shoddy manufacturing, then the company is at fault.  In the case of cars, I accept that certain unusual conditions might create unanticipated problems. But, the brakes and accelerator in cars need to work properly and failures in this area are not acceptable.

Not surprisingly, companies do not intentionally make products to cause them trouble. Rather, they produced such products through negligence or in an attempt to make money by cutting corners. When a problem is found, the natural tendency is to cover it up rather than face up to it.

One reason to do this is to avoid having to pay for the consequences of the problem. For example, if a company accepts responsibility for a defect, this makes it much easier for laws suits to succeed in this area. Also, if a company can cover it up, it can avoid having to pay for the repairs. So, money is an important factor.

Another reason to do this is to avoid the harm to the brand reputation. After all, if the problem stays hidden, the company retains its reputation. This also motivates individuals. For example, Spitzer, Clinton and Stanford did their best to hide their affairs.

A third reason to do this is that people are naturally inclined to hide their failures and resent those who would correct them.

However, the tactic of the cover up is generally a poor strategy. In addition to the obvious ethical issues, the strategy often creates more damage in the long run than being honest.

In his Apology, Socrates noted this. He pointed out that people who do misdeeds prefer to remain hidden and uncorrected, but that they should be grateful for a gadfly who keeps them on track. After all, by being corrected, they will be more likely to do what is correct. But, if they are free to hide their misdeeds, then they will be even more inclined to act poorly and thus end up in a worse situation than if they had been open to criticism.

Toyota seems to be in this situation: they were aware serious problems and seem to have acted to try to conceal them by using their relation with the regulatory folks and by other means.  It seems that getting away with such things might be habit forming. In any case, it does seem to be natural for people to slack when they know they can get away with it. As such, Toyota can be faulted for doing wrong, but the folks who were supposed to be their gadfly also deserve blame.

When Socrates was on trial, he told his accusers that they were doing themselves harm. He seems to have been right. While companies would no doubt prefer to get away with whatever they wish to do, this actually turns out to harm them. While Toyota did enjoy a delay in the consequences of its failures, it is now paying the price. If the company had been properly regulated and brought to task for past problems, it might not bee going trough the disaster it is facing today. Hiding misdeeds just allows them to grow, as Socrates well knew.  As such, proper regulation can actually be very good for companies by helping keep them from hurting themselves.

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[Via http://aphilosopher.wordpress.com]

Saturday, February 13, 2010

Ford Recalls Itself

AP – DEARBORN, MI In an unprecedented marketing move yesterday, Ford Motor Company officially recalled its entire existence after the barrage of publicity that Toyota received for their recent recalls of certain models due to faulty floor-mats and  pedals.  Ford owners and non-owners were baffled by the news. 

“So what does this mean exactly?” asked Jim Starkweather – an FC-150 owner.

“Well, I don’t know what’s going on but I’m damn proud to be a Chevy driver!” exclaimed Mary McDonald who actually owns a Honda Civic.

Scott Elinich, spokesperson for Ford Motor Company, stated that the move was “the next step in an on-going struggle for the biggest piece of the publicity pie” between the major Auto-makers. 

“It just makes the most sense publicity wise,” said Elinich, “Toyota recalls some of their models and it turns into a public relations wet dream, so we recall the whole kit and caboodle!”

Ford apologizes

The new ad-campaign will kick off with a poster of Ford founder Henry Ford in an iconic head-shot with the caption “OOPS!” underneath.  The company is aiming for forgiveness from some 1.3 million satisfied customers.  Elinich, who graduated from St. Luke the Evangelist grade-school in Pennsylvania, said that the idea came to him in a dream about a month ago.

“Sam Kinison and I were playing golf and he hit the ball into the World Trade Center and the whole thing came tumbling down.  He just turned around and said ‘OOPS!’”

“It was a real eye-opener,” Elinich stated.

Ford owners remained dumbfounded this morning.

“Does this mean I’ll be getting some amount of money back?” asked Frank DiPasquale who owns a Focus.

“Anyone who owns a perfectly functioning failure will get a ‘FORD!’ T-Shirt and a twenty-five dollar gift certificate to Applebee’s Restaurants,” Elinich announced.

“It’s our way of saying ‘We’re Sorry’” Elinich added.

Hours after Ford initiated their campaign GM announced that it was building an upside-down corporate headquarters whose foundation would take root in the atmosphere and would rain down Tootsie-Rolls whenever their stock fell.

[Via http://vondrook.com]

Regulatory capture = dead people

“Regulatory capture” refers to the phenomenon in which a government agency that ostensibly regulates an industry or profession is in fact controlled by that industry/profession. One of the ways in which industries/professions capture their regulators is by hiring people away from the government agencies, often at multiples of their government salaries. The idea is that the private concern benefits by hiring people who know how a regulatory agency works but also know its weak points and pressure points, and who have relationships with the colleagues they left behind that may buy their new employer some wiggle room on regulatory issues or the strength/speed of enforcement thereof.

This is a matter of particular concern at the moment because of the 19 (at current count) people who have died in mishaps caused by sticking accelerators in Toyotas. It would seem that erstwhile government regulators hired by Toyota have been meddling for quite a while in government efforts that might have prevented those deaths:

Former regulators hired by Toyota Motor Corp. helped end at least four U.S. investigations of unintended acceleration by company vehicles in the last decade, warding off possible recalls, court and government records show.

Christopher Tinto, vice president of regulatory affairs in Toyota’s Washington office, and Christopher Santucci, who works for Tinto, helped persuade the National Highway Traffic Safety Administration to end probes including those of 2002-2003 Toyota Camrys and Solaras, court documents show. Both men joined Toyota directly from NHTSA, Tinto in 1994 and Santucci in 2003.

While all automakers have employees who handle NHTSA issues, Toyota may be alone among the major companies in employing former agency staffers to do so. Spokesmen for General Motors Co., Ford Motor Co., Chrysler Group LLC and Honda Motor Co. all say their companies have no ex-NHTSA people who deal with the agency on defects.

Possible links between Toyota and NHTSA may fuel mounting criticism of their handling of defects in Toyota and Lexus models tied to 19 deaths between 2004 and 2009. Three congressional committees have scheduled hearings on the recalls.

Well, it’s nice that Congress is scheduling hearings on the recalls, but what needs to happen is hearings on the phenomenon of regulatory capture. How many people are dead prematurely or maimed because of it, in incidents ranging from stuck car accelerators to food poisoning to workplace mishaps? How much is it costing taxpayers/consumers? How might we prevent it?

But since corporations will be paying for political campaigns from here on out, and American journalism has been weakened by its corporate ownership when it isn’t weakening itself by buying into demonstrably false narratives on the virtues of a “free” market, don’t count on those questions being asked — by Congress or anyone else in a position of responsbility.

And if your Toyota’s accelerator sticks, you are on your own. So if that happens, depress the clutch pedal if you have one, or else shift into neutral, and coast/brake to a stop in as safe a place as you can find. Set your parking brake. Turn off your engine. Turn on your 4-way flashers. And then utter a silent prayer of thanks unto God that corporations are people, too.

[Via http://blogontherun.wordpress.com]

Thursday, February 11, 2010

MotorWeek Announces 2010 Drivers' Choice Award Winners

OWINGS MILLS, Md. – (Business Wire) MotorWeek, television’s longest running automotive series, announced the winners today of its 2010 Drivers’ Choice Awards which recognize best in class vehicles in a variety of lifestyle categories. “Emerging from what was a difficult year, this year’s winners represent new benchmarks being set by the auto industry for engineering, design and fuel efficiency,” said MotorWeek host and executive producer John Davis.

The Toyota Prius took top honors as Best of the Year for making improvements on virtually every front including, fuel efficiency, power and versatility. It was also named Best Eco-Friendly.

“The Prius winning the prestigious MotorWeek Drivers’ Choice Best of the Year and Best Eco-Friendly awards is truly an honor that reflects how far hybrid technology in the U.S. has come in one short decade,” said Bob Carter, Toyota Division group vice president and general manager. “Since it was introduced in 2000, the Prius has been an icon for positive change. Now, with over 800,000 currently on American roads, Prius has helped change the way people think about transportation, the roles cars play in the environment, and what people could expect from their cars in the future.”

“If you can only buy one car for your family, the 2010 Prius is the one,” said Davis. “The Prius is a no-compromise vehicle that offers impressive efficiency, cutting edge technology, smart packaging and truly iconic styling.” (Statement from John Davis regarding recall quoted below* or can be downloaded by clicking here)

The entire list of winners will be featured on MotorWeek beginning February 13th on PBS (check local listings). MotorWeek’s Drivers’ Choice Awards have been presented annually since 1983, and are among the auto industry’s most prestigious honors.

Despite a tough year for domestic automakers, Detroit produced some standouts with ambitious remakes of existing models. Calling it a “stellar effort that speaks volumes about where Ford is headed,” the Taurus took top honors as MotorWeek’s Best Family Sedan.

General Motors was recognized by MotorWeek for a trio of outstanding vehicles. With best in class fuel economy, including hybrids, the Chevrolet Equinox captured the title as Best Small Utility, while the Buick LaCrosse took Best Luxury Sedan for delivering stunning good looks and quality inside and out. “These two vehicles have moved the benchmark for affordable vehicles in their class quite a few notches higher,” said Davis. The iconic Chevrolet Camaro took home MotorWeek’s Best Sport Coupe award. Best Small Car went to the Mazda3 for having the “soul of a sports car,” while the new Nissan 370Z Roadster took the title as MotorWeek’s Best Convertible.

German automakers dominated the high performance segments. Audi received two nods from MotorWeek; the S4 was named Best Performance Car, and the R8 5.2 FSI Best Dream Machine. The Mercedes-Benz SLS AMG shared Best Dream Machine honors, while the BMW 3-Series won Best Sport Sedan.

Two 2009 winners held on to their titles. For the second year in a row, the Ram 1500/2500/3500 drove away with Best Pickup and the Honda Pilot won for Best Large Utility.

The editorial staff of MotorWeek test drives more than 150 cars, trucks and utilities each year. Drivers’ Choice Award winners are chosen following a comprehensive evaluation of factors that matter most to consumers – performance, technology, practicality and value.

The winners are: Best Small Car: Mazda3; Best Family Sedan: Ford Taurus; Best Luxury Sedan: Buick LaCrosse; Best Small Utility: Chevrolet Equinox; Best Large Utility: Honda Pilot; Best Pickup Truck: Ram 1500/2500/3500; Best Eco-Friendly: Toyota Prius; Best Sport Sedan: BMW 3-Series; Best Sport Coupe: Chevrolet Camaro; Best Performance Car: Audi S4; Best Convertible: Nissan 370Z Roadster; Best Dream Machine: Audi R8 5.2 FSI/Mercedes-Benz SLS AMG.

MotorWeek is one of the nation’s leading sources for automotive industry news, new car information and driving entertainment. The award-winning series, seen nationwide on PBS, SPEED and V-me, is produced by Maryland Public Television. For more information on MotorWeek and the Drivers’ Choice Awards, visit motorweek.org.

*MotorWeek’s statement regarding issue with
regenerative brakes on the 2010 Prius

“MotorWeek has been test driving vehicles for nearly 30 years, providing unbiased, independent reviews of thousands of cars and trucks. Consumers rely on us to make smart buying decisions, a responsibility we take very seriously. That’s why I want to address the issue of why MotorWeek chose the 2010 Prius as its 2010 Drivers’ Choice “Best of the Year.”

We test drove two 2010 models of the Toyota Prius for several months and never experienced any mechanical problems. The cars were put through MotorWeek’s standard performance tests, including tackling city streets, jammed highways, as well as challenging hills and mountainous terrain. MotorWeek’s “Best of the Year” selection was made well before any potential safety issues were raised. We still think it is an exemplary vehicle that is worthy of the Drivers’ Choice Award and the dozens of other awards it has received. MotorWeek is confident any potential issues will be fully addressed by Toyota.”

[Via http://youngmanmaster.wordpress.com]

Toyota Prius Features

Wonderful Toyota Prius has arrived for passionate car lovers………. With an exciting range from 26.5 lacs to 27.5 lacs(ex showroom new Delhi). Amazing Toyota Prius has a power of i petrol engine and an electric motor. Toyota Prius ……. the car has come with two interior trim options. These are Toyota Prius Z3 and Toyota Prius Z4. Toyota Prius Z3 has a fabric seat material and without seat heater . In addition Toyota Prius Z4 is embedded with leather seat material and seat heater.

Toyota Prius

Toyota Prius

Toyota Prius is gifting you strong pick up and powerful mileage, To assure this it is loaded with powerful 1.8 litre 2ZR-FXE petrol engine and a displacement of 1798cc. The engine also houses 4 cylinder 16 valve with VVT-i. Such a powerful engine to pump 73 kw of peak power at 5,200 rpm and churns 142Nm of maximum torque at 4,000 rpm. Another add on , it is fitted with 650 v electric motor with magnet. The powerful motor is supported by Hybrid Synergy Drive technology which ultimately gives more power, torque and acceleration with less fuel consumption .

Toyota Prius promises greatest fuel economy….. to ensure this it has come up with Power mode, Eco mode and Electric Vehicle mode. Lets come to its amazing exteriors and comfortable , spacious interiors….. specially designed for a delightful drive. Toyota Prius has sparkling turn ups in Silver Metallic, White Pearl Crystal Shine, Abyss Grey Metallic and Beige Metallic. Interiors are aqua and medium grey. Well suited outside rear view mirrors, bumpers and side skirts. To add more styling, sporty look and better road grip Toyota Prius has 15 inch five spoke alloy wheels which increases the beauty of the car.

Toyota Prius

Toyota Prius

Interiors consists of five spoke electronically powered steering wheel has mounted audio, climate and Multi-Information Display controls. With advanced cd player,radio tuner with compact AC. Toyota Prius has spacious and comfortable seats with proper headroom and legroom. Its advanced braking system is hydraulic with electronic control and regenerative. It has got shock absorbers on both the ends

Toyota Prius promises your safety and comfort and it is equipped with Supplemental Restraint System (SRS) drive airbags, side airbags, driver knee airbags and curtain shield airbags and front passenger airbags. For more comfort it has active headrest of front seats reduce impact on neck and back.

Toyota Prius

Toyota Prius

Toyota Prius has got a blend of luxury,style,comfort and most important of all safety. But it has a con too its Visibility through the rear window is troublesome due to backseat headrests and rear spoiler.

[Via http://expertcarreviews.wordpress.com]

Toyota's real problem...

Up to now, I’ve consciously avoided writing about Toyota’s recent recall woes. First, because I think the recall itself is ridiculously overblown, and second, because it’s already been covered ad nauseum. The mainstream press has done its usual job scaring the piss out of people, and most of the gaps they’ve left have been filled by the blogosphere, from Jalopnik’s epic rant about how Toyota’s history of building dull cars has bit them in the ass to Joe Jaffe’s list of five ways Toyota and companies like it can mitigate this kind of PR firestorm hell in the future.

But there’s one thing that hasn’t really been explored amid all the chatter, and that’s why this recall nightmare is so destructive to Toyota in particular.

Now, plenty of people have come to the rather obvious conclusion that this recall is going to put a massive dent in Toyota’s reputation for quality and reliability. But the problem isn’t the recall. The problem is Toyota’s longstanding embrace of quality and reliability as its dominant selling proposition.

The problem with this embrace is threefold.

First, it can’t hold, as we’re seeing now. If you bill your cars as ultra-super-reliable, and people buy your cars mostly because they are ultra-super-reliable, well that’s great, until some unforeseen thing happens that disproves that ultra-super-reliability. Then your selling proposition is gone.

By contrast, look at Mazda. Their main selling proposition is “zoom-zoom”. In other words, their cars are typically more fun and more engaging to drive than the competition. It’s a positive characteristic, and one over which they have total control. They can tweak the suspension setup, the steering feel, seat design and whatever else to deliver on that proposition.

You just can’t control reliability the same way. You can try, you can engineer the hell out of your cars, as Toyota does, and honestly, as most manufacturers do. But in something as complex as a car, somewhere, somehow, something is going to give in an unforeseen way.

Second, placing reliability above all else leads to dull cars. No, seriously, it does, in part because of the way quality is rated. The J.D. Power Initial Quality Survey counts things like firm ride or road noise as quality problems, which is one of the reasons why a brand like Mini usually places pretty low. To bump up those IQS scores, automakers put a lot of effort into NVH (noise, vibration and handling). The surest way to avoid getting dinged for those kinds of things is to make the car so isolated from the road that the drivers don’t hear or feel anything. But this also leads to soft suspension, overboosted steering with all the road feel of a Pole Position arcade game, and near-zero involvement with the road. In other words, dull cars.

Third, reliability is a game others can play. Back in the 70s and 80s, when it was a very likely possibility that your car would either kill you or leave you stranded, Toyota’s reliability was a revelation. But the game has changed a lot over the last twenty years. Nowadays it’s pretty easy to find a car that’s every bit as reliable as a Toyota. There’s pretty much every Honda. And Hyundai and Kia, who back up their quality claims with ten-year warranties. Even the domestics have risen to the challenge. Cadillac, Buick, Ford and Lincoln routinely ride near the top of quality surveys, and all four are currently surging with truly competitive vehicles.

So…the underlying problem I see for Toyota going forward is how they compete now that they’ve lost that unassailable reliability. I’m sure they’ll manage, but they’re also going to have to develop a selling proposition above and beyond reliability if they want to thrive as they have. My guess is that they’ll go with green – where they already have a solid leg up with the Prius.

[Via http://doogs.wordpress.com]

Tuesday, February 9, 2010

Toyota recalls Priuses, heading for more trouble?

Unspun’s alter ego told Reuters last Wednesday about Toyota’s handling of the recall that:

“People want to see a company take full responsibility, be empathic to the victims and their families and be in control by outlining the problem and how they intend to solve it. They also expect the CEO doing all this,” said Ong Hock Chuan, a technical adviser of Jakarta-based PR consultancy Maverick who specialises in crisis management.

“Toyota seems to have failed on all counts.”

Now, a week after, Toyota’s had to recall its best-selling Prius but watch the way Toyota chief honcho Akio Toyoda makes the statement. Still not taking full responsibility, still not empathic and not quite outlining a clear plan to solve the problems besetting the company.

If Unspun was a gambling man, he’d say that Toyota is in for more trouble because its President cannot bring himself to satisfy the basic expectations of people in a crisis-like situation. He’d also bet that Toyota is in denial and not listening to their PR advisers or that their PR advisers suck big time.

Let’s see how Toyota will fare over the next week or two.

Toyota recalls 437,000 Priuses, hybrids globally

Associated Press , Tokyo | Tue, 02/09/2010 9:46 PM | Business

Toyota says it is recalling about 437,000 Prius and other hybrid vehicles worldwide to fix brake problems – the latest in a string of embarrassing safety lapses at the world’s largest automaker.

“I don’t see Toyota as an infallible company that never makes mistakes,” President Akio Toyoda said at a news conference Tuesday. “We will face up to the facts and correct the problem, putting customers’ safety and convenience first.”

With the Prius announcement, the number of vehicles recalled globally by Toyota Motor Corp. has ballooned to 8.5 million, including for floor mats which can trap gas pedals and faulty gas pedals that are slow to return to the idle position. The 2010 Prius wasn’t part of the earlier recalls.

There have been about 200 complaints in Japan and the US about a delay when the brakes in the Prius were pressed in cold conditions and on some bumpy roads. The delay doesn’t indicate a brake failure. The company says the problem can be fixed in 40 minutes with new software that oversees the controls of the antilock brakes.

“Let me assure everyone that we will redouble our commitment to quality as the lifeline of our company,” Toyoda said.

US Transportation Secretary Ray LaHood said in a statement Tuesday that Toyota’s leaders have assured him they are taking safety concerns “very seriously.” The statement said LaHood’s agency will stay in constant communication with Toyota to hold the company to its promise.

Also, State Farm, the largest auto insurer in the US, said it alerted federal regulators late in 2007 about a rise in reports of unexpected acceleration in Toyota vehicles. Congressional investigators are looking into whether the government missed warning signs.

Toyota officials went to Japan’s Transport Ministry earlier Tuesday to formally notify officials the company is recalling the 2010 Prius gas-electric hybrid – the world’s top-selling hybrid car. The automaker is also recalling two other hybrid models in Japan, the Lexus HS250h sedan, sold in the US and Japan, and the Sai, which is sold only in Japan.

The 223,000 cars being recalled in Japan include nearly 200,000 Priuses sold from April last year through Monday, according to papers the automaker filed with the ministry. The Prius is Japan’s top-selling car.

In the US, Toyota will recall 133,000 Prius cars and 14,500 Lexus HS250h vehicles. Nearly 53,000 Priuses are also being recalled in Europe. Toyota is suspending production of the Sai and Lexus HS250h in Japan until the updated software for those models is ready.

via Toyota recalls 437,000 Priuses, hybrids globally | The Jakarta Post.

[Via http://theunspunblog.com]

Toyota Akhirnya Tarik 437 Ribu Prius di Seluruh Dunia

(REUTERS/Yuriko Nakao)

Tokyo, 09 Februari 2010 – Toyota akhirnya menarik 437 ribu Prius hibrida di seluruh dunia karena ada persoalan pada sistem rem. Sebuah persoalan terbaru bagi produsen mobil terbesar di dunia. “Saya minta maaf kepada seluruh pelanggan kami di dunia karena masalah ini. Penarikan ini demi kualitas dan keamanan produk Toyota,” ujar presiden Akio Toyoda dalam jumpa pers di Tokyo, Selasa.

“Kami sangat peduli terhadap keselamatan pelanggan,” ungkapnya. Dia melanjutkan, “Kami memutuskan menarik seluruh produk yang gagal sebagai bentuk perhatian terhadap keselamatan pelanggan kami. Pelanggan merupakan prioritas perhatian kami.”

Penarikan ini merupakan pukulan telak bagi Toyota Motor Corp., yang kini tengah mempertimbangkan menarik tujuh juta kendaraan di seluruh dunia akibat masalah di bagian karpet dek mobil sehingga mengganggu sistem kerja pedal gas.

Toyota menerima 200 keluhan dari Jepang dan pelanggannya di AS karena sistem rem Prius tak berfungsi dengan baik saat diinjak di jalan bergelombang. Persoalan ini, menurut Toyota, sebetulnya tidak terlalu bermasalah karena dapat diatasi dengan cara melakukan pemrograman ulang terhadap perangkat lunak sistem kontrol rem.

Sebelum menyampaikan permintaan maaf secara resmi kepada publik, pejabat Toyota menghadap ke Kementerian Transportasi Jepang, Selasa, untuk melaporkan masalah kegagalan sistem rem Prius. Selain itu, Toyota juga melaporkan penarikan dua jenis mobil hibrida yang dijual di Jepang dan AS. Hibrida model sedan Lexus HS250h dijual di AS sedangkan sedan Lexus Sai hanya untuk konsumen di Jepang.

Menurut laporan yang disampaikan kepada kantor kementerian, Toyota telah menarik 223 ribu mobil termasuk 200 ribu Prius yang dijual sejak April tahun lalu hingga Senin kemarin. Prius merupakan jenis mobil yang paling laku. Di AS, Toyota akan menarik 133 ribu Prius dan 14,5 ribu Lexus HS250h. Prius yang beredar di Eropa juga segera ditarik.

Toyoda mendapatkan kritik tajam karena sejak pengumuman penarikan 21 Januari, dia tak menampakkan diri selama dua minggu, terutama setelah diketahui ada kegagalan di bagian pedal gas produk Toyota untuk konsumen di AS, Eropa, dan Cina.

Jumat pekan lalu, untuk pertama kalinya dia meminta maaf kepada publik. Namun tak ayal media di Jepang mengritiknya karena tak segera mengambil langkah-langkah konkrit untuk mengatasi kegagalan tersebut serta meyakinkan para pelanggan di seluruh dunia.

Berbicara dalam bahasa Inggris pada akhir pernyataannya, Selasa, Toyoda mengatakan: “Kami akan melipatgandakan komitmen kami terhadap kualitas sebagai penyelamat perusahaan kami. Kami juga akan melakukan segalanya untuk mendapatkan kembali kepercayaan dari pelanggan kami.”

Sumber foto

[Via http://rajufebrian.wordpress.com]

Thoroughly Japanese

And I say that as a compliment and with a high level of respect.  For the first time tonight I saw one of the new Toyota commercials that deal with the loss of consumer confidence that has arisen out of the Company’s recent problems with accelerators and now braking-systems in some of its hybrids.  These problems have resulted in immeasurable amounts of negative press coverage, government bungling and grand standing, and doubtlessly fear, anger and upset among its existing customers.  Toyota is trying to repair the damage to both its cars and its mangled image.  Here is that commercial.

In my earlier life as a corporate executive, I had the pleasure of traveling to Japan to work with our business agents and our customers.  The sense of courtesy, honor and integrity that is a part of Japanese culture, particularly in the world of business, is clear when dealing with that culture.  Or, at the very least, that was my experience.  I knew this was the case before traveling there, bur it is especially clear in person.  

For me at least, this commercial oozes with a humble admission of failure that is consistent with their code of business honor.  There is a mea culpa and apology wrapped into one, and it has a sincerity about it that is profound.  And that profundity is even more pronounced in contrast to our culture of victimhood and casting blame everywhere by on one’s self.  I don’t believe an American auto maker would have the courage to make this kind of commercial.  In fact, I dare them to, on the next occasion of a recall on one of their cars.

Toyota still has a rocky road ahead.  Unhappy customers, lawsuits, and lost business await.  But the substance of this commercial, in its own small way, is an indication of a cultural bias toward making things right.  Thoroughly Japanese.

[Via http://chuckthomas.wordpress.com]

Sunday, February 7, 2010

Live and Let Live Not the American Way

Let’s Hope Toyota’s Problems are Toyota’s Fault

Sunday, February 7, 2010. Recently, I was corresponding with one of our ONE.SIX readers, Bret Holbert, concerning the massive problems Japanese automaker Toyota has suffered in recent weeks. It seems everything from hesitant brakes to poorly-designed ashtrays has plagued the world’s top car manufacturer. Holbert suggested perhaps Toyota’s problems were more the result of retributive politics from auto unions and politicians friendly to the unions than to poor quality control on the part of Toyota itself.

Troubles revealed in just the past few days for Toyota’s highly-popular hybrid, the Prius, demonstrate that perhaps there is justification in the U.S. Government’s demands for the $2 Billion recall of Toyota cars. Holbert insinuated that Uncle Sam is being picky with the Tokyo company because they choose right-to-work states for their U.S. manufacturing, or maybe even that they are not American.

He may be right—if so, it would demonstrate just how far Americans have fallen, and just how petty and even vindictive we now are, a 180 twist from what the United States should represent to the world.

Before I got married, I was an English teacher in a picturesque, idyllic town on the Sea of Japan called Tsuruga. I found the Pacific Pearl to be the most accommodating of countries, with fabulous salt-of-the-earth people. When I left the poorly-run American company for which I taught and decided to start my own English teaching business, I met a very kindly doctor in town who had hordes of money, and yet was incredibly humble. When he found out that I had been forced to leave my apartment by my former employer and consequently needed a new place to live, Dr. Tadao Ishikawa gave me everything. He and his wife spent an entire weekend cleaning out a house they owned that had been vacant for ten years, and let me inhabit it rent-free. In fact, the doctor would not even let me pay utilities, even though I was able. All I had to do was teach English to his young son, Yugi, for 30 minutes a day, Monday through Friday.

The doctor had me over with his family for sushi and other goodies regularly. He took me with his family on the bullet train to Tokyo and spent money on me like it was going out of style.

He was not only great to me, but to any other Americans in town (it was a small town–there were maybe five or six of us). There were other rich people in town, and all seemingly the same towards Americans. In fact, rich or not, all the Japanese people treated me like royalty.

Finally one day, I asked him, “Dr. Ishikawa, why are you so nice to me?”

He looked down for a few seconds to collect his thoughts.

He began, “When we bombed Pearl Harbor without any good reason, we, the Japanese people, were ashamed. It was the Emperor’s war, not ours. You, the Americans, then fought for 4 long years against us and lost many lives. It was a difficult war. The Emperor would not give up, even though America was, by 1945, dominating the war. Finally, you had to drop the atomic bombs on Hiroshima and Nagasaki. (Note: Estimates are that the U.S. would have lost another 60,000 troops had the war continued .) Then the war was over.”

He paused, fighting back tears. I was mesmerized.

“When that terrible war which we had started war was over, the U.S. could have just packed up and gone home. Carl, I and most of Japan know that any other country in the world would have done just that, and would have been completely justified. Instead of abandoning our broken nation—you built us back up. You gave us millions of dollars in aid and millions of man hours to help us rebuild our infrastructure. No other nation on earth would have done that! Japan is now very prosperous, and it would not have happened without America.”

At this point, I was in tears myself, because I had never been so proud to be American as I was at that very moment. What he didn’t say in words, but his eyes and spirit clearly conveyed, is that America, as one nation under God, does what Christ would do.

Of course we helped Japan, and Germany, too. Those countries have become among our strongest allies. If we have fallen to become a nation that would try to squelch out non-American companies, then we have fallen a long way.

Many isolationists claim that America should worry about itself and get out of Afghanistan and Iraq and other nations where we maintain some sort of relief or military presence. Their arguments make logical sense, what with all the problems we have stateside, especially our spiraling national debt.

But America is a nation built on Christian virtues of love, hope, compassion, and charity. That same spirit that caused the pilgrims to seek a land in which they were free to worship as they desired, which emboldened the founding patriots to fight for independence from England, which prodded the Union to rebuild the South after a bitter civil war, which harkened the President and Congress to enter world wars fought principally far away from American shores, and helped rebuilt defeated foes in their aftermaths, which elicited action in Korea and Vietnam to thwart Communistic tyranny, and which obligated American intervention in the Middle East, is the same spirit without which America could have not become a great nation. Without that quintessence, America would never have become what it has become.

Although America has sacrificed greatly for the independence it declared 234 years ago, it has proven the most altruistic nation on earth, contributing more to the world community than any nation in history.

Most Americans never turn their backs because America never turns its back. America is not a selfish nation, but rather, a country that knows a better world is better for America, and for every other nation.

–CB

[Via http://blog.onepointsix.org]

Toyota to announce Prius recall this week

Toyota to announce Prius recall this week: report

By Manager Online 7 February 2010 10:45 Japan’s crisis-hit Toyota Motor is set to announce a recall of the latest model of its top-selling Prius hybrid in Japan and the United States due to brake design flaws, a report said Sunday. (AFP/Kazuhiro Nogi)

February 7, 2010
TOKYO (AFP) – Japan’s crisis-hit Toyota Motor is set to announce a recall of the latest model of its top-selling Prius hybrid in Japan and the United States due to brake design flaws, a report said Sunday.

“The company has notified its dealers in Japan that it would recall all the (new model Prius) vehicles sold in the country,” the mass-circulation Yomiuri Shimbun daily said without naming its sources.

The report also said the company would make an official announcement of the recall early this week.

The recall, which would repair a software programme for the anti-lock braking system designed to prevent skidding, is expected to affect some 270,000 vehicles in Japan and the United States alone.

Toyota has sold more than 300,000 of the latest Prius in 60 countries and territories since the new model rolled out in May last year.

Toyota, already reeling from massive worldwide recalls due to sticky accelerator pedals, has come under fresh fire after it said it had fixed the Prius brake system in January without warning drivers who already own the model about the possibility of brake failure.

The Japanese transport ministry has reportedly received about 80 complaints this month about malfunctions in the brake system, while Toyota has separately received more than 100 complaints since the crisis broke.

Five cases reported to the government relate to crashes in which, according to the drivers, the brakes malfunctioned, local media said.

The company was not immediately available to confirm the reports.

SEVERIN AS 3914 – Trancheuse – argenté
SEVERIN KM 3881 – Robot ménager – blanc/bleu
Severin – 3233 – Fer Vapeur de Voyage, Blanc / Bleu, 930 W, Bitension
SEVERIN UZ 3861 – Hachoir
Severin – 4121 – Cafetière Isotherme – Blanc – 800 W – 1.0 L
Severin – 1056 – Réchaud 1 Plaque, Blanc, 1500 W
Severin – 4031 – Cafetière Programmable, Noir, 1000 W, 1.4 L
Severin – 3258 – Fer Vapeur, Noir / Argent, 2400 W, Semelle Inox
SEVERIN HM 3828 – Batteur à main – rouge/argent
Severin – 3887 – Robot Multifonction – Blanc/Gris – 750 W – Blender + Accessoires
Severin – PG9320 – Eco – Barbecue Table – 2300 W – Rectangulaire – Noir
Severin – 2681 – Raclette Gril, Noir, 1100 W, 8 Parts, Thermostat
Severin l/B00- 2024 – Mini Four, Noir / Inox Brossé, 1500 W, 28 L, Chaleur Tourn.
SEVERIN AT 2586 – SEVERIN AT 2586 – grille-pain – noir
SEVERIN FR 2419 – Friteuse – acier inoxydable (Import Allemagne)
SEVERIN SM 3803 – Mixeur à main – rouge/argent
Severin – 3652 – Stérilisateur, Beige / Brun, 1800 W, 29 L, Corps Émaillé, Robinet
Severin – 1523 – Barbecue – Rouge/Noir – 2300 W – Grille Chromée 37 X 23 Cm – Pare-Vent
SEVERIN BA 3277 – Fer à vapeur – blanc/bleu
Severin – 1013 – Réchaud 2 Plaques, Inox Brossé, 1000 W et 1500 W
SEVERIN FR 2414 – Friteuse – noir/inox brossé
Severin – 3365 – Bouilloire – Noir/Inox Brossé – 2000 W – 1.5 L

[Via http://hometheater001.wordpress.com]

Toyota's Prized Prius To Join Recall List?


Toyota’s history-making hybrid, the Prius, may be added to the growing list of cars recalled due to faulty brakes. Toyota’s spokespeeps have said that the company may add around 270,000 2010 Priuses (Pri-ui?) to its recall list, after owners have reported slow-to-activate brakes in their cars. Brake-hampered Priuses sold overseas in the past few weeks have already been fixed by altering the car’s computer software.

Toyota has already recalled close to 10 million cars so far this year, due to sticky break pedals that have been blamed for a handful of accidents. The company is also looking at whether there are brake issues with its hybrid Lexus.

Next Wednesday, the Oversight and Government Reform Committee will hold a hearing on “Toyota Gas Pedals: Is the Public At Risk?” The hearing will focus on the federal government’s response to the recall of millions of Toyota vehicles due to reports of faulty gas pedals.

[Via http://girlsfirstcar.wordpress.com]

Saturday, February 6, 2010

2010 Toyota Highlander

When we first received the Toyota Highlander into the Top Speed test fleet we immediately noticed just how big the Salsa Red Pearl crossover from Japan really is. Even our base model Highlander came rather well equipped, and is the perfect new car for a growing family on a budget. The Highlander that Toyota chose for us to drive is representative of the automaker’s high quality economical transportation options.

The CUV came with everything you need to get the job done, like third row seating and plenty of interior space to go along with the comfortable ride, minus a few of the pricey creature comforts that the segment has become synonymous with; keeping the new car’s price well in the affordable range. On the outside, everything about the Highlander is big, like the oversized grill and machined six spoke alloys measuring 17 inches in diameter, giving the crossover a more powerful presence rather than a playful persona, unlike the majority of the CUV field. Meanwhile the interior is spacious and wrapped in cloth continuing the cost effective crossover theme.

Although Toyota offers both V6 and Hybrid equipped Highlanders, under the hood our car came equipped with a rather large 2.7 Liter VVT-i four cylinder engine cranking out 187 HP and a gas sipping six speed automatic transmission that is good for 20 MPG in the city and as much as 27 MPG at highway speeds. The package is more than enough to scoot the nearly two ton crossover around town comfortably, all for under $26,000.

Source: topspeed.com

[Via http://topwheels.wordpress.com]

How to Stop Sudden Unintended Acceleration - Cars with Automatic Transmission

While Sudden Unintended Acceleration—the kind that triggered the Toyota recall—is an extremely rare occurrence, it doesn’t hurt to have effective countermeasures ready. Here’s a quick primer on what do if your car takes off.

The scenario is terrifying: While cruising along, your car takes off like some mysterious invisible foot has floored the throttle. The odds that this will actually happen are infinitesimally small. We’d bet that the morning walk to your car has a greater likelihood of injury. But sudden unintended acceleration does happen. And if you’re driving, you should know how to remedy the situation.

Step 1 /// Press the Brake Pedal, Hard

The first thing to do—immediately—is press as hard as possible on the brake pedal. Do not pump the pedal, but simply keep steady, hard pressure. Use all the strength your leg can muster. The brakes will require significantly more force than normal because when the engine throttle is wide open, there’s no engine vacuum to power the brake booster. The car won’t slow as quickly as normal, either, but it will reduce speed. In every car, the brakes are more powerful than the engine, so eventually the brakes will win.

Step 2 /// Get Into Neutral

The next step is to shift the transmission into neutral. If the throttle is stuck wide open, the engine will rev alarmingly high. Do not worry about hurting the motor, there’s an electronic rev limiter that will automatically keep the engine spinning high enough to kill it. With the engine power now disengaged from the drive wheels, the brakes will have a much easier job.

Step 3 /// Turn Off the Car

You’re well under control now, but just to be safe, shut off the engine. Since some modern cars have push-button starters, like many Lexus models, you may have to hold the button for three seconds to cut the engine. And you should be aware that the brake-pedal pressure may increase when the motor stops running. As safely as possible, pull the car off the road and call a tow truck. There’s no sense driving the car again until the mechanical problem is found and fixed.

Performing well in any panic situation comes down to being prepared. So find an empty parking lot and practice these techniques. To simulate a stuck throttle, you’ll have to keep the throttle pinned with your right foot and use your left foot to work the brakes. After a few go-arounds, you’ll get the idea.

[Via http://bensoncheng.wordpress.com]

Thursday, February 4, 2010

Peek-a-boo: New Braking Problems Pop Up in the Prius

2010 Toyota Prius

Just when you thought that Toyota had a grasp on its malfunctioning accelerator woes, new revelations cast doubt on the brake system of their vaunted 2010 Prius (I can almost hear the muffled cries of chetsu! from across the Pacific). Before you rush out to your already besieged local Toyota dealership, know this: no recall has been announced on the 2010 Prius.

Here’s the skinny on the issue: drivers have reported that their brakes temporarily lost power after going over potholes or rough roads (better call and hassle your alderman to fix the streets). The brake loss has only lasted a few seconds, but I imagine those seconds felt like hours to frantic driver madly jabbing at their pedals. According to the National Highway Traffic Safety Administration, there have been at least 136 complaints about the faulty Prius brakes, 4 of which involved a crash.

Engineers are already starting to speculate that the issue stems from the Prius’ regenerative braking system, a complex technology that harnesses the energy released when the pads pinch the rotors and sends it back into the Prius’ bank of Duracells. However, no official explanation has been given for the troubles.

Source: NY Times

[Via http://autoanything.wordpress.com]

Others are waking up to the US gov conflict of interest re Toyota

The US has big stake in GM. Toyota is GM’s big rival. Toyota has a product problem. The US government is the safety regulator and watchdog. The US government piles on Toyota–makes big news, sales crash and GM profits. Everyone’s happy. Not me. I complained about this stinky mess–an unintended consequence of Obama’s decision to bailout the company–in my last post. I have been stunned, absolutely stunned that there is no media coverage of this very clear and potential credibility busting conflict. But, now it appears that is starting to come.

Here’s one example. Note that this article starts putting the Toyota problems in context–something the headline crazed media refuse to do and can’t be expected to do. But the more the US government piles on Toyota, against this context, the more unfair it will be and appear and the more backlash there will be on the US ownership of GM. My advice to President Obama: decide what is a better and more appropriate role for the US government–watchdog and protector of the citizens or owner of a company in a highly competitive market. You can’t be both!

[Via http://crisisblogger.wordpress.com]

Toyota Incidents Raise Questions About The Future Of Procuement

Yesterday I featured a discussion that I had with auto industry expert John Henke, in which he highlighted the decline in supplier relations between providers and the non-US OEMs, such as Honda and Toyota. He observed  that relationships have become ‘more adversarial’ and that one cause  was a growing number of new staff who were not versed in ‘the Toyota way’.

There are of course key questions that must be asked regarding why this happened. The most obvious answer appears to be that Toyota has joined the cost-cutting frenzy that appears to have overwhelmed good judgment in a number of industries in recent years, especially many consumer-facing companies. And then we must ask, to what extent are Procurement groups the culprits or the victims in this story?

Of course input costs have always been a subject of focus for senior management and the consolidation of Procurement – and its emergence as a ‘core discipline’ – reflected that  focus. However, has the discipline now moved out of control, or become too singularly focused? Driven by external consultants, there appears to be a belief that whatever we pay, it is too  much. The advent of globalization, spend management tools, e-auctions, ‘commoditization’ techniques all led to more and more aggressive behavior towards suppliers, where the only value seemed to be low cost.

Recent developments in ’supplier relationship management’ do not appear to have made things much better. I remember one CPO of a Fortune 50 company telling me that ‘The closer we get to our suppliers, the more we tell them that we value partnership, the more their margins fall’. This is just one of many stories I can recount where the pressure on price – often accompanied by thoughtless allocation of  business risk – has undermined loyalty and prevented collaboration. Supplier relationship management is meant to fix this, but in general the way it is being implemented does not drive improvement. Firstly, it is far too narrow. Anyone who beleives that just a handful of suppliers are imporetant is folling themselves. And even this handful are frequently subjected to the same on-going pressures on price .

The result of this focus on input cost is that everyone has been forced to cut back. Suppliers cannot afford to support the numbers of staff or the extent of the customer interfaces that would allow more integrated teams or more collaborative product development. Trust has eroded and ‘partners’ have become more secretive and protective. In an era when communication tools are proliferating, communication quality is declining. Cost cutting has resulted in many relationships becomign virtual – and none of us has yet discovered how to relicate the loyalty that results from personal interactions.  Procurement has added to these changes by draconian controls over travel and meetings, by interjecting itself between suppliers and users, by eliminating even basic interactiosn through the use of e-auctions and similar techniques.

On one level, Procurement has been doing what it was asked to do – cutting input costs and delivering savings. On another, that unrelenting focus and the techniques that accompanied it have perhaps destoryed fundamental value and left business reputations exposed. 

Any group that positions itself as ‘professional’ is surely responsible for analyzing the consequences of its own actions. Executive management may ultimately be accountable, but the Procurement community (and its professional associations) must surely have responsibility to alert management to the consequences of those actions.

It is time for Procurement to hold itself to account and ask some tough questions about the broader role it plays in corporate success. It must learn the fundamental value and techniques of collaborative behavior, as well as analyzing more thoroughly the performance impacts of some of the tools and techniques that are now commonly used.  It is a great opportunity; and the Toyota experience indicates that this evaluation is urgent.

[Via http://tcummins.wordpress.com]

Toyota Recall – A Double Standard?

I have watched with a certain amount of amazement the recent recall of Toyota automobiles due to a “sticky” accelerator problem. The press has crucified Toyota over this matter. Today, due to one consumer’s experience, the press is questioning whether the problem could be electronic or due to software, rather than simply the mechanical cause to which Toyota is now admitting. US Transportation Secretary Ray LaHood even announced today that people should not drive their affected Toyotas until fixed, sending Toyota stock into a further downward spiral. He later recanted that position.

This is a serious problem, and it needs to be fixed. However, uncommon intermittent problems do take time to identify and resolve. Toyota, in my opinion, took the high moral ground by admitting there was a problem, and very publically proceeded to stop sales until the issue was identified and solved.

Toyota is known for quality, not perfection. Man-made machines will always have problems, including those made by Toyota and Rolls Royce. My confidence in Toyota is not shaken, because when they identified a problem they were willing to put the company at significant financial risk to resolve it. In public. I admire that.

Compare this to Ford.

I own a 1994 Econoline E150 Club Wagon van. On Thanksgiving weekend of 2008, with 165,000 miles, it had a catastrophic failure of the frame and steering box. My family, six of us plus the dog, were driving on a steep narrow winding icy mountain road at Mount Baker, in Washington state. As we prepared to park near the ski lodge, something in the steering went snap. At that point the steering wheel turned freely, without the corresponding turning of the tires. The bolts that attach the steering box to the frame completely sheared off, rendering the steering completely useless. Had this happened moments sooner or later than it did, we would all be dead. The good Lord must have paid His guardian angels overtime on that day.

Investigation showed that the frame was full of cracks, especially around the bolt holes, and the structural failure of the frame led to increased pressure and torque on the steering box; eventually the bolts failed.

I filed a report with Ford and with the National Highway Traffic Safety Administration (NHTSA).  A search for similar events found many occurrences of the same identical failure have been reported to the NHTSA. Some included serious injury. Yet there is no recall. In fact, neither the NHTSA nor Ford will even acknowledge that there was/is a problem.  My report is found here.

It is my guess that such failures have happened without this cause being identified. Assume that such a steering failure leads to a high speed front-end or head-on crash. Such a crash would normally rip the steering box away from the frame. How many of these have been ruled a result of a crash rather than the cause? How many people may have died, and the accident report has mistakenly assumed that the driver fell asleep or failed to pay proper attention?

All I want is for Ford to acknowledge my problem, and launch an inspection of similar vehicles. So far, they have only tried to sell me a new vehicle. At this point, I will never own another Ford again.

I wonder what Toyota would have done in my case?

[Via http://seabecker.wordpress.com]

Tuesday, February 2, 2010

Impact of the Toyota Recall on Auto Rental: Tempest in a Tea Cup?

The operational and financial impact of the Toyota recall on the auto rental industry is expected to be minimal, according to a recent analysis by equity trading and research firm MKM Partners LLC.

“We believe the operational impact of the Toyota recall for the auto rental companies will be minimal and that the financial impact should (depending on timing) be limited,” wrote Christoper Agnew, CFA senior analyst for MKM Partners.

In addition, Agnew wrote that Hertz (HTZ, Buy, $10.57) should be the most affected, with Toyota at 20 percent of its fleet mix, but only 70 percent of these vehicles are the ones affected by the recall. This compares to 7-8 percent for Avis Budget (CAR, Buy, $11.15), 4 percent for Enterprise (Private, Not Rated) and only 1.5 percent for Dollar Thrifty Group (DTG, Buy, $25.44).

[Via http://daytonbrown.wordpress.com]