Toyota's Recall Crisis: What Have We Learned?

In August, 2009, the improper installation of an all-weather floor mat from an SUV into a loaner Lexus sedan by a dealer led to the vehicle's accelerator getting stuck, causing a tragic, fatal accident and launching the most challenging crisis in Toyota's history. This iconic company, synonymous with safety and quality, was vilified by the American press, the government, and expert witnesses to plaintiff lawyers. Details usually unworthy of public attention, such as internal memos disagreeing over public relations strategy, became smoking guns that convinced the press and the public that Toyota vehicles had electronic problems causing runaway vehicles — and that the company was hiding this from the public.

The National Highway Transportation Authority (NHTSA), the government arm responsible for enforcing auto safety, came under attack for being too soft on Toyota.

What did we learn on February 8, 2011 when the report came out?

Read the complete article at: blogs.hbr.org/.../toyotas_recall_crisis_full_of.html
by Jeffrey K. Liker - professor of industrial and operations engineering at the University of Michigan and is author, with Timothy N. Ogden, of Toyota Under Fire (2011).