It did not sound right when I heard Toyota recalling 8.6 million plus cars for faulty gas pedals. The company is known for making luxury and reliable cars such as Lexus, Camry and many others. Years ago, its quality circle manufacturing process was the envy of their counterparts around the world. Ironically, the malfunctions in Toyota cars surfaced not long after this Japanese car maker overtook General Motors Company as the largest automobile maker in the world.
Undoubtedly, this massive recall now in progress tarnishes the good name Toyota has earned over the past 75 years. It will also be a costly proposition to the company. But, there is a gleaming light in this dire situation. Toyota becomes the world number one car maker because it sold more cars than all other makers. Unlike many others, Toyota has a rich equity base so it did not have to incur much debt to finance its expanded business bases. For this reason, many financial analysts predicted that fiscally Toyota will survive the massive recalls of its cars and resulting lawsuits.
Hopefully, after Toyota redeemed itself in this recall fiasco at great costs, it also cured itself the so-call "big company disease." - Ayee
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