Silver Lining

MANILA, Philippines - Over the past couple of weeks, the buzzword in the automotive industry has been “recall”. It all started late last month when Toyota Motor Sales (TMS) USA announced the recall of approximately 2.3 million vehicles to correct sticking accelerator pedals on specific Toyota models. Well, it actually started earlier than that as Toyota had been doing research prior to the big news breaking. It all came to a head on January 21, though. That’s when the huge recall announcement was made.

In a statement, Toyota explained it thus, “In recent months, Toyota has investigated isolated reports of sticking accelerator pedal mechanisms in certain vehicles without the presence of floor mats,” said TMS Group Vice President Irv Miller. “Our investigation indicates that there is a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position. Consistent with our commitment to the safety of our cars and our customers, we have initiated this voluntary recall action.”

The recall talk was further bolstered earlier this week when Toyota announced the voluntary recall of approximately 133,000 2010 Model Year Prius vehicles and 14,500 Lexus Division 2010 HS 250h vehicles to update software in the vehicles’ anti-lock brake system (ABS). Both recalls will bring no added cost to affected customers.

Now, understandably, this whole recall business has created a dent in Toyota’s erstwhile rock solid reliability image. But one must understand that there is a very positive lining to this, what seems to be a very dark cloud in Toyota’s horizon. Because here are the facts: Yes, Toyota has admitted to releasing sub-par products via the recall. But along with the admittance comes a sincere desire to correct a shortcoming that could potentially be dangerous. In other words, what better responsible corporate practice is there than owning up to one’s shortcomings and subsequently correcting them? Frankly, it’s the best thing that a corporate entity can do, given the harsh situation, of course.

Recalls have been around almost as long as the automotive industry itself has. As with anything, certain manufacturing processes have potential Achilles heels. Market research often leads to discoveries of one faulty feature or another. That’s when talk of recalls begin.

We’ve sat with our fair share of automotive industry officials and the general assessment (even amongst non-Toyota executives) is that Toyota has done the right thing by not just calling for early recalls, but also by going as far as to halt sales efforts. In the interim, Toyota affiliates in the affected regions are exhausting efforts to fix the recalled vehicles and educate their customers in what is being done to ensure their safety. Toyota has bitten the bullet, so to speak. And while this move is hurting their current financial status, it will ensure their viability and reliability as a company worthy of their customers’ trust.

Prior to writing this article, I have spoken openly about how I admire the firmness and swiftness of the Japanese carmaker’s move. It is the height of professionalism to go the extra mile to ensure that one’s products are of the highest quality, even after they have been sold. Our family has a Toyota in our garage, and though it is not affected by the recall, I feel very safe knowing that the company who put the vehicle together is the kind that will exhaust resources just to assure that customers like us feel safe. Despite this unfortunate turn of events – actually, no – because of it, I have so much more respect for and confidence in car industry players like Toyota.