Toyota Problems a Result of Greed?

The latest problems with Toyota cars and trucks have to make people wonder whether greed really is the best way to run a company. As the fictional Gordon Gekko once said "Greed is good", however, in this case it is only good until those being taken, will cut off the flow of money. When customers have a clear choice on most likely their second biggest purchase, borrowing money to buy an inferior problematic product makes no sense. From poor quality steel to unsafe engineering practices, Toyota customers who have never been particularly loyal to any brand will simple take their money to the better or cheaper products on the market and there are many out there. This list of problems have been piling up for almost 10 years. Now the recent recalls and extreme safety issues, have really brought the Toyota problems into focus.

Here are the current facts:

  • 2,300,000 cars being recalled worldwide because of a dangerous gas pedal that sticks. Includes Avalon, Camry, Corolla, Highlander, Matrix, Prius, RAV4, Sequoia, Tacoma, Tundra, and VENZA.
  • 437,000+ Toyota Prius cars recalled because of faulty brakes
  • 14,500 Lexus HS 250h recalled because of faulty brakes
  • 2,000,000+ Toyota Corolla speed control and brake issue recalls
  • Unknown numbers of Toyota Tacoma trucks with very poor steel. Toyota has refused to recall.
  • Over 10 years of Toyota Camry transmission problems
  • Toyota Highlander vehicles with very low quality steel. Toyota has yet to recall.
  • Toyota has now protested News agencies from covering the recalls by threatening to stop advertising on the news agencies television networks.

It is evident that as the overall car and truck market condensed in the mid to late 2000's Toyota continued to try to maintain a profit. It is amazing that as most other world wide car makers experienced losses during this time period, yet Toyota was able to stay in the black. A great way to stay profitable is to cut corners, by cutting spending on engineering, materials, and research and development. This tactic of course is only a temporary solution, as was the case with Toyota. The dam finally broke in 2009 when they posted their first quarter loss. Now in 2010 the floodwaters continue to flow as poor management of the company rears it's ugly head. The cut corners are now piling up as customers are considering trading in their Toyota while it still has some value.