Toyota Turmoil

Another day and another recall by Toyota Motor Sales. One week after an all out media blitz to assure customers that Toyota is still a trustworthy brand; the automaker is apologizing to its public once again. This time the fault is with the anti-lock brake system (ABS) in the 2010 Prius. According to Toyota some owners report inconsistencies when they brake on rough or slick surfaces. Around 133,000 Prius vehicles are being recalled so that a software update can be made to repair the anti-lock brake system in the 2010 Prius.

In an article submitted to the Washington Post Akio Toyoda, President of Toyota Motor Company, issues an apology, “When consumers purchase a Toyota, they are not simply purchasing a car, truck or van. They are placing their trust in our company.
The past few weeks, however, have made clear that Toyota has not lived up to the high standards we set for ourselves. More important, we have not lived up to the high standards you have come to expect from us. I am deeply disappointed by that and apologize. As the president of Toyota, I take personal responsibility. That is why I am personally leading the effort to restore trust in our word and in our products.”

This is the latest in a series of Toyota recalls involving tricky floor mats and sticky gas pedals. Consumers who don’t own a Toyota may be leery of buying one now. Those who do own one have serious cause for concern. A lawsuit being filed in a U.S. District Court claims certain Toyota car buyers have lost part of their resale value due to the recalls. A lawyer involved in the suit wonders how customers can be certain problems from past recalls have really been fixed. Toyota President, Mr. Toyoda claims 80% of all Toyotas sold in the United States during the last 20 years are still on the road. American automakers like General Motors are not shedding tears for their rival. These major problems come when for the first time ever Toyota has posted an annual loss. You can bet your next “Low Down Payment” that we’ll see a slew of anti-Toyota commercials and sales promotions in the weeks and months ahead.