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Toyota Camry Recall 2007 • Who: TOYOTA MOTOR NORTH AMERICA, INC. 20070926 • What: STICKING ACCELERATOR PEDAL • Why: THE WEATHER MATS FOR THE CAMRY HAS THE POTENTIAL TO MOVE FORWARD DURING THE VEHICLE USAGE AND IT MAY INTERFERE WITH THE ACCELERATOR PEDAL THE ACCELERATOR PEDAL MAY TEMPORARILY BECOME STUCK IN A PARTIALLY DEPRESSED POSITION WHEN RETURNING TO THE IDLE POSITION. IF THIS CONDITION OCCURS, IT MAY INCREASE THE POSSIBILITY OF A CRASH. • When: TOYOTA WILL NOTIFY OWNERS OF ALL 2007 AND 2008 TOYOTA CAMRY VEHICLES ABOUT THE RECALL TO ADVISE OWNERS WHEN REPLACEMENT MATS WILL BE AVAILABLE OR HOW TO RETURN THE ALL WEATHER FLOOR MAT SET TO OBTAIN A REFUND. THIS LETTER IS EXPECTED TO BE SENT DURING EARLY OCTOBER 2007. • Source: http://www-odi.nhtsa.dot.gov/acms/documentList.do?docId=07E082&docType=RCL&fromPublic=true ETM591_AshleyMurray
Management Issues • Recognition of problem: • Received complaints as early as 2005 • Did not take immediate action • Speed of response: • Dean Reynolds says some critics maintain Toyota has a history of foot-dragging when it comes to addressing concerns. • Recall Announced: SEPTEMBER 26 2007 • NHTSA Reference #07E082000 • Number Affected: 55,000 • "Additional Recalls: • Brake Recall • Gas Pedal Recall • Airbag Deployment Recall ETM591_AshleyMurray
Impact of Recall • Legal consequences: • According to CBS news : Toyota lawsuits can cost the company over $3 billion dollars. • State Farm sent a letter to Toyota in September 2007 asking it to pay for claims in an accident involving a 2005 Toyota Camry. State Farm wrote, "We are aware of several complaints to your company of sudden acceleration involving the Toyota Camry.“ • Reputation: • In public, Toyota is running apologetic TV ads and vowing to win back customers' trust. • Consumers lost faith in Toyota and no longer considered them the safest most reliable car. • Sales: • According to CBS news, Reynolds reports that Toyota's new car sales and used car values are plummeting. • Consequently, American car manufacturers sales increased. ETM591_AshleyMurray
References • Websites: • http://www.toyota.com/recall/ • http://www.toyotaproblems.com/recalls/Camry/2007/ • National Highway Traffic Safety Administration: • http://www-odi.nhtsa.dot.gov/acms/documentList.do?docId=07E082&docType=RCL&fromPublic=true • CBS News: • http://www.cbsnews.com/stories/2010/03/09/business/main6281207.shtml • http://www.cbsnews.com/stories/2010/02/10/business/main6192754.shtml ETM591_AshleyMurray