Toyota recalls more vehicles in the U.S. than it sold last year prompting study of Vehicle Development Process
Last year, Toyota recalled 2.38 million vehicles in the U.S. -- more than the 2.26 million vehicles Toyota sold in that year. This statistic resulted in a formal review by Toyota to determine what needed to change. After a two-month review of its product development process, the significant lessons learned include:
1. Engineers in some cases may have rushed out products without conducting enough quality checks, nor building a sufficient number of physical prototypes.
2. Toyota also concluded that it outsourced engineering perhaps more than it should have, and relied on computer-aided engineering and other computer analysis too much.
3. Toyota is determined to build more physical prototypes in the future to quell recalls and quality glitches.
Other actions taken as a result of the study include the decision to slow down Toyota's ambitious growth plans around the world. Each product plan in every market was reviewed to determine whether to delay, cancel, reallocate or proceed. This review was in response to product recalls and other quality problems.
Even as it slows down the pace of new product introductions, Toyota still wants to extend its business in every segment (of the auto market) in every region of the world. Toyota sees its growth coming from three key efforts:
1. To transform its Lexus premium brand, a North American-only franchise today, into a more global premium franchise;
2. To launch low-cost $6,000 to $7,000 cars in emerging markets around the world;
3. To develop commercial vans that would compete globally, including in Europe and North America. (Source: Wall Street Journal 12/11/2006)
Despite the recalls at Toyota, GM brands still lag behind most of our transplant competition when it comes to the public's "trust" perception, according to Strategic Vision Inc.