Monday, May 31, 2010

Toyota: Friend or Foe?

Over the course of several years consumers have put their trust and safety into the vehicles made and sold by Toyota. They have had over twelve years of record-breaking sales and in 2008 sold over 2.6 million vehicles in the U.S. Toyota's reported revenue for the FY 2009 was $208.995 billion. Although the number of vehicles sold have decreased due to the recent recalls, Toyota remains a powerhouse in the automotive market, with GM and Volkswagen in hot pursuit.

When you drive down the highways and around the city each day many of the cars you notice on the road are made by none other than Toyota. They have been awarded the ENERGY STAR Sustained Excellence award by the EPA in 2007, 2008 and 2009.

So the question is whether or not you consider Toyota a friend or a foe?

There have been arguments for both sides. Toyota has had an excellent record for safety, reliability and being a leader in manufacturing and production. Many of my family members have purchased these cars based on their excellent record. These cars have lasted 10, 12, or 15 years based on the care given to them by their owners. When you see the Toyota symbol on television, in a book or in the news you think reliable. The history over the past 70 plus years has been unbeatable when compared to other brands. This pertains to brands in the U.S., Europe, Asia and other countries. Even if you do not own a Toyota you understand the impact it has had in the automotive industry. They were the first company to commercially mass produce hybrid vehicles.

Let's not even look at their records with records to automobiles and focus more on the non-automotive efforts. Toyota has been involved in philanthropy activities such as scholarships with the United Negro College Fund, developing a family literacy program and creation of the Toyota USA Foundation. They have ties to the aerospace industry, agricultural biotechnology and robotics. Toyota has been under recognized in their efforts to promote higher education because they are most well-know for their innovations in automotive technology. The company has founded a technological institute, student exchange scholarship and teacher programs and list goes on and on.

The flip side of this argument is based on the criticism that Toyota has received after the recall in late 2009 and that has continued through 2010. Although they continue to be a leader in this industry, sales have declined considerably. A big part of the problem is that reports indicate Toyota has known about this problem for years and failed to initiate a recall of its vehicles. Most of their top selling vehicles were taken off the market to research the faulty accelerator pedals, floor mats and brake system. All along Toyota was assuring their consumers that they were rectifying the problem. However, the news painted a different picture. A company that covered up the problem for many years and continue to produce vehicles despite reports of unintended acceleration. This problem led to many accidents of which numerous lives were lost. Toyota was blamed for these deaths, but was this a legitimate problem or merely driver error.

Numerous sites, investigations and articles indicated that many of these accelerator problems could be directly linked to driver error in many cases. There are reports that drivers would unintentionally press the gas instead of the brake due to outside distractions and panic of the driver. Toyota however has continued their marketing strategy to show their company as authentic and a continued force to be reckoned with. Their latest strategy involved commercials of recent Toyota consumers who have purchased vehicles telling their story of why they purchased a Toyota. The commercials include real people who have purchased these feelings after the mandatory recall. Toyota continues to use their motto, "Moving Forward", which in this case is fitting to help them in moving on past this recall, the investigations and fines that have accompanied it.

Whatever your decision is or verdict that you have assigned Toyota, one thing remains the same and that is their continued efforts in striving for excellence. I, for one, consider them a friend based on their record and history not only in the automotive arena but in philanthropic efforts as well. And Toyota is not the only company to have faced such a problem. Many years ago Audi faced a similar recall and Volkswagen has had numerous complaints of unintended acceleration problems.

The choice is yours, friend of foe? But whatever you choose do so wisely.