The really interesting thing is, that when you look at the industry as a whole, quality has been increasing even as the vehicles are getting more complex. If you look at the reported problems per vehicle, virtually every mfg. has improved markedly over the last decade. Toyota and Ford included. The trend I was commenting on is that Ford is decreasing the problems per vehicle faster than Toyota. At this rate, Ford's fleet average will equal Toyota's in just a couple of years. And some models have caught or surpassed the equivalent Toyota's already. Toyota has a well deserved reputation for quality, but it seems like they are experiencing some growing pains.

 

Good point..............but this is how I feel (I swear):

Ford was never as bad as C/R and JD Powers made them out to be.

And Toyota and all were never as good as C/R and Powers made them out to be.


I never cared about their ratings when I bought my 20+ new Fords over the years, and their ratings would NOT have kept me from buying the new Tundra.

 

I couldn't agree more. I work on cars/ trucks for a living, and I get plenty of every type of car from Toyota's, Fords, and BMW's. They ALL eventually have problems.

 

toyota sux

 

True statement, but you only see them when they need repair. What percentage of each never need your talents? From our family experiences and most of the quality surveys will back it up, BMW is far worse than average and Toyota is better than average with Ford in between. I'm not talking about this years' JD Power or whatever, but 20 years or so of history.

Jim

 

Becoming more true by the day, it seems.

Toyota skids in reliability rankings

Consumer Reports said it no longer recommends V6 versions of Toyota's Camry or four-wheel-drive V8 versions of its Tundra pick-up because of poor reliability.

In the past, because Toyota (Charts) products have so consistently proved reliable, the magazine would assume at least average reliability for Toyota's brand new cars, without waiting for survey data from owners.

But from now on, the magazine will wait for a full year of reliability survey data to come in before it recommends a Toyota product - as it does with most other manufacturers.

Ford, in particular, is improving in quality, according to Consumer Reports. In all, 93 percent of Ford, Lincoln and Mercury vehicles showed average or better reliability in the most recent reliability survey.

Among overall brands, Ford's Mercury brand ranked 11th, the Ford brand ranked 13th and the Lincoln luxury brand ranked 14th. Other than Buick, they were the highest-ranking domestic brands.

Mike Hardie, Ford's director of quality, predicted that Ford would take the top position in Consumer Reports reliability rankings in the near future.

Ford's quality has tended to be more consistent, with steady improvement year over year, than that of other domestic manufacturers, said David Champion, head of auto testing for Consumer Reports.

"GM and Chrysler have been more hit-and-miss," said Champion.

Of the 39 cars rated "Most Reliable" in Consumer Reports new list, four are by domestic manufacturers. They are the Ford Fusion, Mercury Milan, two-wheel-drives Ford F-150 V6 and GM's Pontiac Vibe. The Vibe is built in cooperation with Toyota and shares its engineering with the Toyota Matrix."[/b][/i]

http://money.cnn.com/2007/10/16/autos/cr_reliability/index.htm?cnn=yes

Reliability trends

Our latest survey tracks a decade’s worth of trouble - October 2007

Over the years, the reliability of Toyota-built vehicles (including Lexus and Scion) has been nothing short of sterling. However, our 2007 Annual Car Reliability Survey indicates that the Japanese automaker has slipped a bit. Three models manufactured by Toyota, including a version of the top-selling Camry, now rate below average in our predicted reliability.

By contrast, Ford's domestic makes have made considerable improvements in reliability. Of the Ford, Lincoln, and Mercury models in our survey, 93 percent scored average or better in predicted reliability.

Other news from our latest survey:

* Overall, Asian models still dominate in reliability, accounting for 34 of the 39 models in the Most reliable new car list. Thirty-one are Japanese and three are South Korean.

* Despite Toyota's problems, the automaker still ranks third overall in reliability, behind only Honda and Subaru, with 17 models in the best list. Honda has seven with a smaller model lineup.

* Only four domestic models made the Most reliable list: the Ford Fusion, Mercury Milan, Pontiac Vibe, and the two-wheel-drive Ford F-150 with the V6 engine. U.S. makes, however, account for almost half the models--20 of 44--on the Least reliable list. There are 13 from GM, 6 from Chrysler, and 1 from Ford.

* European makes account for 17 models on the Least reliable list. This includes six each from Mercedes-Benz and Volkswagen/Audi.

link:http://www.consumerreports.org/cro/c...view/index.htm

Ford quality improves, Toyota drops, Consumer Reports says
The Detroit News

Ford Motor Co. has significantly improved the quality of its cars and trucks, while Toyota Motor Co. slipped out of the No. 1 spot in Consumer Reports newest survey on vehicle reliability.

According to data released today by the well-read consumer advocacy publication, 41 of Ford's 44 models scored average or better in predicted reliability.

Honda Motor Co., meanwhile, edged Toyota out of the top spot. Three Toyota vehicles lost Consumer Report's "buy" recommendation. For the first time in the survey's history, a version of the Toyota Camry - the V6 - isn't recommended by the publication.

http://detroitnews.com/apps/pbcs.dll/artic...PDATE/710160435

 

RANTS by Peter M. De Lorenzo of Autoextremist
http://www.autoextremist.com/index.shtml

Dear Mr. Toyoda...

Detroit. Not to rain on your parade this morning, especially after your induction into the Automotive Hall of Fame in Dearborn last evening, but how can I put this other than to say that all of a sudden things aren't looking so good for Toyota in the U.S. market after years of unprecedented ascension and current dominance? I know you're "just" the honorary chairman of Toyota, but you're the direct link to the founding Toyoda family of the Toyota Motor Corp., and from what I understand, you're still "the straw that stirs the drink" in the company and you still set the tone for the entire Toyota organization.

So on your tour of the U.S. headquarters in California this week, where you are expected to be debriefed about all of the latest developments with the Toyota juggernaut in the U.S., rather than getting the story from your Japanese and American operatives, I thought I'd give you the straight story from the heart of the U.S. auto industry here in the Motor City.

What does the "Detroit Three" have to do with the future of Toyota? After all, isn't the domestic automobile business in the U.S. just the trash heap on the side of the road fading in your rearview mirror on the way to becoming The Greatest Automobile Company the World Has Ever Known?

As we like to say around here during football season, not so fast, and here's why:

Those executives walking out the door? Those aren't just due to the ebb and flow of normal business operations. And no, I'm not talking about Deborah Wahl Meyer here, since her abilities have yet to be tested on a genuinely tough marketing challenge, and her value to the Cerberus-owned Chrysler is still a giant "wait and see." I'm talking about Jim Press and Jim Farley. Press you know very well, as it is said that you were his mentor in the company. Sure, you can chalk it up to the mercenary aspect of the situation, as Press could potentially make more personally than you've made over your entire career several times over, but you know better than probably anyone that there's a deeper undercurrent to Press leaving. He was elevated up and out of the fray, and at the end of the day your company made it very clear that the highest-ranking American at Toyota would never be more than that - just another deckhand on the Toyota ship. That's perfectly logical, given that Toyota, at the end of the day, is a Japanese company, but then again, the message it sends is not exactly comforting to the U.S. managers toiling on your behalf, now, is it?

Even though Press was moved out of the way before his departure, his stamp is all over your U.S. operation, right? And now his avowed mission is to help resurrect a U.S. brand and give you and your organization fits, which can't make you very comfortable or happy. Yes, I questioned Jimbo's moral compass in all of this because after all, he worked for 37 years to make Toyota No. 1 on your family's behalf and now all of a sudden he's as American as an Uncle Sam actor in a Fourth of July parade, which is a bit disingenuous, to say the least, but nonetheless, one of the architects of Toyota's unequaled success in the U.S. is now playing for the Dark Side.

But then again, you can sit back and philosophically chalk that up to the fact that Press is getting on in years and he really wasn't worth that much to the organization anymore, right? Or at least that is what your internal spin-meisters are going to tell you this week to assuage your concerns.

But then what are we to make of Jim Farley's departure to the Ford Motor Company?

Certainly no one can live up to the press clippings that the fawning automotive media has bestowed on young Mr. Farley, right? Yes, that is true, but - and we're talking a giant "but" here - it's very clear that Farley was the best and brightest star in your entire U.S. organization, no? He was the Heir Apparent, the Dude Who Would Be King and the guy who was eventually going to lead your money-printing operations for the next 20 years. And there's no way you can gloss-over his loss is there? No, you can't. And get ready, because I'm hearing there will be more departures of Americans from your U.S. operations shortly.

And the free pass you've been getting from the automotive and mainstream media for the last 10 years? It's about to evaporate into thin air. That little dustup generated by your Cheerleader in Chief, Tom Friedman, of The New York Times, two weeks ago over Toyota's apparent less-than-Jolly Green Giant marketing initiatives into gas-guzzling trucks and SUVs and the fact that you're siding with the Detroit Three in their quest for saner CAFE legislation is just the tip of the iceberg. You can dismiss most of it, because Friedman, like most of his Green Posse brethren, is totally clueless about the scope of Toyota's business model here in the U.S. (they're just now catching up to the fact that the Prius isn't how you make your money over here, and they're shocked, shocked that this is so). All of your accumulated "we're the most benevolent car company on the planet" goodwill and all that money you've spent on "hugs and smiles" marketing campaigns is about to get blown up real good. And with your Golden Marketing Boy gone and your organization reeling from his departure, your ability to respond in the necessary fashion will be compromised, at best...

No individual or company can stay as hot as Toyota has for as long as it has. Yes, I know the mantra around your place is that "complacency is the enemy" and all the associated platitudes that go with that statement, but what do we know about Toyota of late, besides the fact that your Green halo is getting caught in the crossfire between the rabid Friedmanistas and the reality of making money in the U.S. - which is still the single most important market in the world?

Let's review, shall we?

Yes, you're about to become the biggest car company in the world, but at what price? Should I remind you of the unprecedented recalls by your company over the last three years? Or about the 470,000-vehicle recall in your home market that you just announced today? And the fact that other manufacturers are getting dangerously close and in some cases equaling and even surpassing Toyota's vaunted quality statistics in the most recent surveys?

And how about the news yesterday from Consumer Reports magazine, that bastion of self-promoting automotive objectivity and the magazine that literally propelled Toyota to its lofty quality perch over the years? They reported that the quality of cars made by Toyota had slipped so much that the magazine no longer will automatically recommend them. Ouch. And ironically, the magazine released the results of its 2007 annual Car Reliability Survey yesterday in Detroit. Double ouch.

Consumer Reports reported that two of your most crucial and all-new for 2007 models, the perennially best-selling Camry V-6 and the new four-wheel-drive Tundra pickup scored below average. And as you know, CR won't recommend any model scoring below average to its readers. Toyota used to get a free pass from the magazine for its previous record of reliability and quality. Not anymore. The magazine announced that it would no longer recommend any new or redesigned Toyota-built models without reliability data on a specific design. That kind of shoots holes in the old Toyota=Good, Detroit=Bad formula floating around the mainstream media now, doesn't it?

That's got to be daunting to you and your organization, because after all, without your (formerly) unimpeachable reputation for quality what is Toyota left with, exactly?

The environmental high ground? Hmmm, how is that working out for you of late? What about exciting cars and trucks? Uh, not so much. Your company has struggled for years to convince consumers that you indeed build emotionally involving products, and you've failed miserably at it. You build the rolling equivalent of automotive pabulum, and you know it. As a matter of fact, there are some people (including me) who are highly skeptical as to whether or not you're even capable of building anything but vanilla-flavored transportation devices. After all, isn't it your company that has been unable to record even a single victory in Formula 1 after spending upwards of $2 billion with a capital "B" over the last five years? That's right, not one.

And what about the U.S. market? You've had to spend unprecedented cash on rebates and incentives in an attempt at seeding the new full-sized Tundra pickup in this market. And even with that unseemly business, your company has had three - count 'em - three straight months of downward sales numbers. That's unprecedented, too, at least in your recent double-digit-sales-increase-every-month history.

Just wondering, but are you going to do a Vince Lombardi for the troops in California and say, "What the Hell is goin' on out there?!?" Nah, not your style, I would bet, but you will be asking them that in so many words, won't you?

Yes, Mr. Toyoda, in this 50th Anniversary year of your operations here in the U.S., you have serious problems looming at every turn. And to make matters even worse, your main rival - General Motors - has finally emerged from its 30-year slumber/coma and is coming out with a variety of cars, trucks and SUV/crossovers that are uncomfortably competitive, even threatening, in some cases. Not to mention the fact that Toyota's Greener-than-thou persona is about to be seriously challenged over the next two years by GM (and every other car maker in the world, for that matter).

 

...For instance, the new GM Volt is a game-changer, and despite your company's public, "What, Me Worry?" stance, privately, it has you deeply concerned, doesn't it? GM is out to dislodge you from your emerald precipice, and much to your chagrin, they could very well do it by 2010, couldn't they? And that, combined with the fact that GM's latest contract negotiations with the UAW will put them in a very competitive financial position by 2011, leaves you with a heaping bowl of not good - right, Shoichiro?

So, I hope you enjoy your stay in the States, and congratulations again on your induction into the Automotive Hall of Fame. And just remember one thing - it's a lot easier to be in pursuit of a goal than it is to know what to do once you've attained it.

It looks like we'll see what your company's really made of over the next couple of years, won't we?

Thanks for listening, see you next Wednesday.

 

Environmentalists Target "Green" Toyota
Brandon Hill - October 5, 2007 2:01 AM


Toyota's free ride on the Green Train may be over


Toyota has been riding high on a green cloud of eco-friendliness with the American public since 2000. It was that year that Toyota introduced the first generation Prius. The tiny Echo-based compact sedan brought gasoline-electric hybrids to the mainstream.

Over the past few years, Toyota has expanded its hybrid portfolio and has seen its "green" image explode. Following the release of the first generation Prius, Toyota introduced a larger, mid-sized Prius hatchback in late 2003. Later, Toyota released a Highlander Hybrid SUV and a Camry Hybrid.

While the Toyota brand has focused on using hybrids to improve fuel economy, the Japanese auto giant's Lexus luxury division has been using the Hybrid Synergy Drive to boost performance. Increased fuel economy is still a benefit of Lexus hybrids, but the RX 400h, GS 450h and LS 600h L market the performance aspects of the additional electric motors.

Now, however, it appears that Toyota's honeymoon with environmentalists may be coming to an end. In a move that has angered the National Resources Defense Council (NRDC), Toyota decided to side with General Motors, Ford and Chrysler in opposing a proposed Senate bill that would require a corporate average of 35 MPG by 2020.

"Why is Toyota, a company that can make a car that gets 55 miles per gallon today, fighting a 35 mpg standard? If Toyota's "Moving Forward" motto is more than just empty words, the company must support a sensible increase in fuel economy to 35 mpg by 2020," said the NRDC in a statement on its website.

Instead, Toyota is putting its support behind a bill proposed by the House that would mandate targets of 32 MPG to 35 MPG by the year 2022.

“They have a green halo, justifiably, and yet unbeknownst to their customers they’ve joined forces with the Detroit Three to argue against greener standards,” said NRDC vehicles campaign director Deron Lovaas.

Toyota contends that the Senate bill is too harsh on auto manufacturers and will be tough to implement. “For the first time, the industry has actually come together for a fuel economy increase, and everyone is pulling together in the same direction,” said Toyota spokeswoman Martha Voss. “Toyota is working very hard behind the scenes to achieve the best standards possible, not only for the whole industry, but to meet the energy and environmental goals that we all share.”

Considering that Toyota's lineup of cars already average more than 32 MPG by federal regulations, many may wonder why Toyota would be opposed to a measly 3 MPG increase by 2020. Toyota's concern comes from the fact that the Senate bill would require a 35 MPG average from Toyota's entire vehicle lineup -- that includes gas-guzzling pickups and SUVs.

Toyota's apprehension becomes even clearer when the new Tundra full-size pickup truck comes into the picture. Toyota's Tundra has always played second fiddle to the biggest and baddest from Detroit, but Toyota's third attempt at the full-size market is starting to gain some traction.

The new Tundra packs a 381 HP V8 engine on its options sheet and records fuel economy numbers of 14 MPG/18 MPG city/highway in 4x4 guise. The problem is compounded by the fact that the previous generation moved a meager 124,508 units – Toyota is on track to break the 200,000 units sold mark for 2007 with the redesigned Tundra.

Toyota also announced cheaper trim levels for the 2008 Tundra which will further drive sales and lower the company’s fuel economy average. In addition, Toyota is looking to drive its truck sales even further with a redesigned Land Cruiser, Lexus LX 570 and Sequoia – all of which use the potent 5.7 liter V8 engine paired with a six-speed automatic transmission.

“They market every night the Prius and the Toyota Camry — we’re the green car, huh,” remarked Representative Edward Markey (Democrat-Massachusetts) who also happens to own a Camry Hybrid. “Then watch the football games, and they’re marketing the Toyota Tundra — like the biggest vehicle ever made.”

“We’re actually going to name the vehicle the Tundra, after the thing that’s being destroyed in Alaska. How ironic,” Markey continued.

There is still room for improvement on Toyota’s end, however. The company is hard at work on a diesel engine for the supersized Tundra and the company plans to implement hybrid technology into all of its vehicles by 2020.

http://www.dailytech.com/article.aspx?newsid=9170

 

Toyota admits Camry V6 flaw, reacts to Consumer Reports Survey

Jim Lentz, executive vice president of Toyota Motor Sales U.S.A. told Automotive News. "Lentz said he was not surprised that the Camry V6 was on the list as it had a transmission flaw that Toyota was aware of. “We knew in the very beginning we had a transmission issue with that vehicle,” he said. The problem caused the transmission to get stuck in second gear or pass through second gear roughly.

http://www.leftlanenews.com/toyota-admits-camry-v6-flaw-reacts-to-consumer-reports-survey.html

This problem traces all the way back to 2002.

http://www.post-gazette.com/pg/04343/423383.stm
http://www.postgazette.com/pg/05036/453222.stm
http://www.post-gazette.com/pg/04345/424551.stm

 

Toyota stumbling?: http://www.cnbc.com/id/15840232?video=563131501&play=1

Avalon shows dent in Toyota quality; fixes sought for "problematic vehicle": http://www.autoweek.com/apps/pbcs.dll/article?AID=/20060501/FREE/60501002&SearchID=73243279592052

NHTSA Deals Another Blow to Toyota, New Probes Might Mean More Recalls: http://www.autospies.com/news/NHTSA-Deals-Another-Blow-to-Toyota-New-Probes-Might-Mean-More-Recalls-7488/

Toyota's hybrid SUV short on quality: http://didaauto.com/article_show.php?id=24

Feds Look Into Prius Stalling: http://www.cbsnews.com/stories/2005/06/01/tech/main698938.shtml

Long line of faulty cars muddies Toyota image: http://www.iht.com/articles/2006/08/06/business/toyota.php

Repairing Some Dents in an Image: http://www.nytimes.com/2006/08/05/business/worldbusiness/05recall.html?ex=1312430400&en=2f945ee76672db4e&ei =5090&partner=rssuserland&emc=rss

Toyota facing another Tundra recall: http://www.autoblog.com/2006/08/08/toyota-facing-anothertundra-recall/

Toyota Sludge Class Action Settlement: http://www.oilgelsettlement.com/detailed_notice.pdf

Oh What A Bad Feeling: Toyota To Recall 533,000 Sequoias and Tundras: http://jalopnik.com/cars/news/oh-what-a-bad-feeling-toyota-to-recall-533000-sequoias-and-tundras-229876.php

The Little Toyota Engine Light That Couldn't Turn Off: ToMoCo Issues Recalls For Over 250,000 Vehicles: http://fjork_duf.jalopnik.com/cars/news/the-little-toyota-engine-light-that-couldnt-turn-off-tomoco-issues-recalls-for-over-250000-vehicles-220629.php

Toyota's totally bizarre recall - Why would Toyota issue a recall designed to make vehicles less safe?: http://money.cnn.com/2006/07/11/autos/bad_recall/index.htm

 

Tundra owners grumble over rumble

Mark Rechtin
Automotive News
October 22, 2007

"Angry consumers are peppering the Internet with complaints that the torque converter in the 2007 Tundra's six-speed transmission has problems disengaging during gearshifts — a problem that Toyota acknowledges.

...Toyota Motor Sales officials have nicknamed the problem "the rumble strip" because the slippage causes vibration similar to the sensation of driving over the wake-up strips at the side of highways.

...... the problem sometimes worsens to the point that some owners can't shift into certain gears."

......"Tundra owners in several Internet chat rooms say their transmissions quit shifting properly, forcing them to limp the truck to a dealership"

Tundra tail gate can't support the weight of an ATV or golf cart without buckling: http://www.tundrasolutions.com/forums/tundra/114436-tundra-tailgate-failures-i-am-club/

5.7-liter Toyota Tundras Hit with Camshaft Failures:

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http://www.pickuptruck.com/html/news/toyota/tundra/camshaft/camshaft.html

 

Is Toyota in Trouble?

Momentum could stall as recalls mount. - October 19, 2007

Like millions of Americans, Suzanne Oshry is a loyal <?XML:NAMESPACE PREFIX = ST1 /><ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE></ST1:CITY> owner. Or at least she has been.

Earlier this year, Oshry purchased the latest in a string of Camry sedans from Miller Toyota of Culver City, Calif., but she didn't even make it home before she noticed something seriously wrong with the way the car rode and handled. Her subsequent struggle to get the problem resolved has left Oshry with more than a sour taste in her mouth.

While her problem is more the exception than the norm, Oshry's experience is being repeated with unexpected frequency around the <ST1:PLACE w:st="on"><ST1:COUNTRY-REGION w:st="on">U.S.</ST1:COUNTRY-REGION> </ST1:PLACE>And so, ironically, even as the Japanese maker surges to the number-two spot in the American market, it is suffering what one influential publication has dubbed "cracks in its armor." Quality problems, recalls, and rising incentives could reverse what, until recently, seemed <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>'s irreversible momentum.

For Suzanne Oshry, the problem with her Camry - a set of improperly installed tires - was eventually resolved, but only by going to another dealer. Indeed, repeated efforts to get Miller Toyota, or the factory, to assist were rebuffed until TheCarConnection.com became involved. By then, said the <ST1:PLACE w:st="on">Southern California</ST1:PLACE> housewife, it was too late.

"There (is) no way I would ever do business with Miller again and would also dissuade anyone I knew interested in acquiring a <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>from using that particular dealership." More disconcerting, at least for <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>, Oshry adds that, "my loyalty to their brand has been lessened."

Even the best brands will occasional make a mistake, and anger a customer. But over the years, <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>'s reputation and market share has grown based on a reputation for bulletproof products that give owners little reason to get upset. Suddenly, more consumers find themselves experiencing problems, often with <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>'s best-known and normally most reliable models.

Nagging issues with the latest version of the mid-size Camry, the new full-size Tundra pickup, and the all-wheel-drive version of the maker's highline Lexus GS sedan, led the highly influential Consumer Reports magazine to issue a stern rebuke. Declaring "<ST1:CITY w:st="on"> Toyota</ST1:CITY> is showing cracks in its armor," the magazine has pulled those three models from its "Recommended" list, a sought-after rating that <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>and Lexus products have normally won automatically.

It needs be noted that <ST1:PLACE w:st="on"><ST1:CITY w:st="on">Toyota</ST1:CITY></ST1:PLACE> still produced 17 of the 39 most reliable vehicles in the Consumer Reports survey, but, it finished overall in fifth place. "To see one of the premium manufacturers have three vehicles fall below average in reliability is a big concern," said David Champion, director of auto testing for the magazine. "They've always been average or better with all their products up to this point."

Recalls mounting

The non-profit publication isn't the only one to question <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE></ST1:CITY>'s quality. The most recent Initial Quality Survey, from J.D. Power & Associates, showed the Japanese giant nudged aside by its Asian rival, Honda, and other recent quality studies have found several <ST1:COUNTRY-REGION w:st="on">U.S.</ST1:COUNTRY-REGION> brands, including General Motors' Buick, besting <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE></ST1:CITY>.

A number of huge recalls over the last three years, have further tarnished <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota </ST1:PLACE></ST1:CITY>'s reputation for building cars, trucks, and crossovers with the reliability of the best appliances. That may be one reason why the automaker, despite record <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S. </ST1:PLACE></ST1:COUNTRY-REGION>market share, is working a little bit harder to complete every sale.

While conventional wisdom would suggest that <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>doesn't need to use rebates and other giveaways, the truth is that the maker's incentives have increased by roughly 250 percent over the past three years. In September, the average <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>giveback was only marginally less than the struggling General Motors, $3752 per vehicle versus $4326 at GM. In September 2004, the <ST1:COUNTRY-REGION w:st="on">U.S.</ST1:COUNTRY-REGION> maker laid out $5168 in incentives compared with $1506 at <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>, according to CNW Marketing, an automotive research firm.

At GM, it should be noted, "They need incentives just to get customers in the door," explains CNW President Art Spinella, while <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota </ST1:PLACE></ST1:CITY>showrooms are traditionally busy. But, he adds, "It's becoming harder (for <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota </ST1:PLACE></ST1:CITY>) to close a sale" without sweetening the deal. Much of that is offered in the form of "dealer cash," or money a retailer can use to close a deal, rather than the highly publicized rebates <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Detroit </ST1:PLACE></ST1:CITY>is famous for.

<ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota </ST1:PLACE></ST1:CITY>'s incentives vary widely, from model to model. The new Tundra has some of the biggest numbers, reflecting its slower-than-expected launch.

Since the mid-1980s, when Japanese makers came to dominate the passenger car market, <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Detroit</ST1:PLACE> </ST1:CITY>has focused most of its attention on light trucks. While Japanese makers have steadily gained ground in the SUV and crossover segments, they've repeatedly failed to crack the full-size pickup market, dominated by the likes of Ford's F-150 and Chevrolet's Silverado. But that was supposed to change with last year's launch of the new Tundra.

The new model is bigger and more powerful than ever, with more variants aimed at distinctly different sets of pickup buyers. <ST1:CITY w:st="on">Toyota</ST1:CITY> even built a new assembly plant in <ST1:CITY w:st="on">San Antonio</ST1:CITY>, <ST1:STATE w:st="on">Texas</ST1:STATE>, the heart of <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S.</ST1:PLACE> </ST1:COUNTRY-REGION>pickup country. But the plant was beset with problems, running well over budget and rolling out vehicles with a series of snags, including a reported engine defect.

 

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There have been numerous demands for a recall of the V-8-powered Tundra, which is now on Consumer Reports' "Least Reliable" list. But for the moment, "We're still investigating that issue," and have not made a decision on whether to recall the truck, said <?XML:NAMESPACE PREFIX = ST1 /><ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>'s John Hanson. The automaker's spokesman insisted that overall, <ST1:PLACE w:st="on"><ST1:CITY w:st="on">Toyota</ST1:CITY> </ST1:PLACE>has a lot to be proud about, but he acknowledged, "We didn't do as well as we did last year," and are in the process of trying to get to the heart of the worsening quality issue.

What's the problem?

Exactly what's wrong isn't clear. And it seems like every industry expert has a differing opinion. In some cases, a single defective part can lead to the recall of more than a million vehicles, as happened two years ago. But there's little doubt that the mounting problems are linked to <ST1:CITY w:st="on">Toyota</ST1:CITY>'s rapid expansion, particular in the <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S.</ST1:PLACE> </ST1:COUNTRY-REGION>marketplace. It has not only pushed past perennial number three automaker Chrysler but in recent months, <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>has also been nudging aside the seriously wounded Ford for the number-two position.

To get there, the Japanese maker has been rapidly expanding its North American production base, with factories like the one in <ST1:STATE w:st="on"><ST1:PLACE w:st="on">Texas </ST1:PLACE></ST1:STATE>. With the exception of its Japanese-made Lexus brand, the vast majority of <ST1:CITY w:st="on">Toyota </ST1:CITY>products sold in the States now are built in the <ST1:COUNTRY-REGION w:st="on">U.S. </ST1:COUNTRY-REGION>or <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">Canada </ST1:PLACE></ST1:COUNTRY-REGION>.

"Part of the problem," suggested one senior company executive, asking not to be named, "is that we're running out of sensei." The Japanese term refers to specially-trained team leaders who serve as a sort of manufacturing disciple, moving from well-established plants to newer facilities, in order to ensure the smooth transfer of the vaunted <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>manufacturing system.

On top of all that, Toyota has begun to experience an unexpected and unprecedented series of defections at its senior ranks, including its top American executive, Jim Press, who is now the number two at Chrysler; Deborah Meyer, who was a top marketing manager; and Jim Farley, seen by many as a fast-rising star at Scion and Lexus. The losses have almost certainly distracted management attention.

Further complicating matters, Toyota has been rapidly expanding its model lineup, adding new trucks, like the Tundra, crossovers, hybrid-electric vehicles, all-wheel-drive luxury sedans and more, each creating new opportunities for things to go wrong.

The problem is clearly not limited to the <ST1:PLACE w:st="on"><ST1:COUNTRY-REGION w:st="on">U.S.</ST1:COUNTRY-REGION></ST1:PLACE> At the same time Consumer Reports took <ST1:CITY w:st="on">Toyota </ST1:CITY>to task, the automaker was announcing the recall of 470,000 vehicles sold in <ST1:PLACE w:st="on"><ST1:COUNTRY-REGION w:st="on">Japan </ST1:COUNTRY-REGION></ST1:PLACE>for problems including defective engines, steering, and fuel pumps.

Soon after taking the helm at <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>two years ago, president Katsuaki Watanabe was forced to go onto television and apologize for the way the company had handled some serious quality issues. The executive responded with the Customer First program, assembling every senior engineer in the company and demanding that they come up with ways to get their arms around the problem.

Even though it has one of the fastest R&D operations in the business, lead times in the auto industry are long, and the first product developed under Customer First is just now hitting market. To ensure things go right with the 2008 Highlander SUV, <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>tacked on an extra 30 days to the development process, mostly to search out unseen gremlins.

Whether Customer First resolves matters remains to be seen, but spokesman Hanson says, "We feel this pilot program will be the template for everything that comes after."

Things gone right?

No matter now good a manufacturer gets, some things invariably go wrong. According to one senior <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>official, the damage to Suzanne Oshry's tires could have taken place "in nearly a dozen different locations" between the supplier and the dealer. But those retailers have often been cited as one of the weakest links in the entire <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>system.

<ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>has traditionally limited the number of retail outlets, good news for dealers who sell, on average, several times more vehicles per store than even the best of their Big Three rivals. But that also has meant that their staff "are little more than order takers, rather than salesmen," asserts analyst Spinella. And numerous studies, including the J.D. Power Dealer Satisfaction Index, show <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>dealers ranking low in terms of addressing customer problems.

As TheCarConnection.com first reported in June, <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>is preparing a new program, dubbed Everything Matters Exponentially, or EM2, to deal with snags on the service side. "The company is trying to address the entire sales and service experience (because) if we really want to keep growing, we have to do it by increasing customer loyalty," explained Jack Hollis, the corporate manager who oversaw the initial development of EM2.

The work in progress didn't seem to help Oshry, which only underscores the danger <ST1:CITY w:st="on"><ST1:PLACE w:st="on">Toyota</ST1:PLACE> </ST1:CITY>faces. For nearly two decades, the Japanese maker has built a reputation for doing the right thing: building reliable, if somewhat bland, products, and then standing behind its customer. Word-of-mouth, as much as all its corporate ad campaigns, have turned <ST1:CITY w:st="on">Toyota</ST1:CITY> into the force to be reckoned with in the <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S.</ST1:PLACE> </ST1:COUNTRY-REGION>market. But if the current spate of problems continues, the automaker's momentum could reverse.

Has that process already begun? The automaker's <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S. </ST1:PLACE></ST1:COUNTRY-REGION>sales dipped a slight 0.6 percent in September. But it's easy to read too much into those numbers, especially when compared to the all-time record the maker set a year ago, cautions analyst Spinella.

But even so, he insists that, "Frankly, this is the downside of the slope for them. If they're unable to fix this, in five years, I think their position in the <ST1:COUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">U.S.</ST1:PLACE> </ST1:COUNTRY-REGION>could resemble GM's, with shrinking market share."

http://www.thecarconnection.com/Auto_News/Daily_Auto_News/Is_Toyota_in_Trouble.S173.A13529.html?pg=1

 

JAPAN: Another Toyota recall: 470,000 cars
17 October 2007 | Source: just-auto.com editorial team

Article summary:
On the day the influential US organization Consumer Reports dropped some of its models sold there from its 'recommended' list, Toyota announced a recall of 470,000 vehicles in Japan to correct fuel system and steering problems.

http://www.just-auto.com/article.aspx?id=92776

Toyota to recall 470,000 cars due to defective parts

Highlight:
Toyota was last year instructed by Japan's transport ministry to improve its operations after local police alleged that the company knowingly failed to respond to a defect in a sports utility vehicle.

http://afp.google.com/article/ALeqM5...d_Wo3hUo1P_0Iw

No wonder so many Toyota executives are jumping ship.