Page 53 - Toyota Under Fire

TOYOT A UNDER FIRE

In the wake of crises to come, many pundits suggest that Toy-
ota was growing too fast during this period, introducing quality
problems and weakening the culture. But just before the recall cri-
sis, in 2009, there was no sign of a slippage in quality: Toyota
brands won 10 of the coveted J.D. Power initial quality awards
for the best vehicles in a segment—more than any other auto-
maker. The Toyota assembly plant in Higashi-Fuji, Japan, re-
ceived the Platinum Plant Quality Award for producing vehicles
yielding the fewest defects and malfunctions, averaging just 29
problems per 100 vehicles, while the industry average in 2009
was 108 problems per 100. Consumer Reports 2009 reliability
rankings (which necessarily are looking at the prior year’s vehi-
cles) found that three of the five most reliable brands were Toyota
makes (Toyota, Scion, and Lexus). The Prius was the most satis-
fying overall car. Lexus was the overall best in reliability (for the
eighth time in 20 years), and the Sienna minivan was the top-
rated nonluxury car.
Then, with the summit within reach and every part of the
company seemingly stronger than it had ever been before, Toyota
suddenly confronted one of the most difficult periods in its his-
tory. From the oil price spike in the spring and summer of 2008,
to the Great Recession, to serious allegations of major safety and
quality problems in the United States leading to the recall of mil-
lions of vehicles, the challenges, both external and self-inflicted,
just kept coming.
How Toyota rose to those challenges and turned them into
opportunities for continuous improvement is the story that we’ll
tell in the next three chapters. It’s an important story for any-
one who wants to be prepared when a crisis strikes, whatever its
source. It sheds new light on how even the best will stumble—
and what the best need to do to recover when they do.

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