All is not well in Aichi and Tokyo. In 1937 a visionary established an automotive giant which for the better part of the century has been a synonym for quality, safety and reliability. A constant pursuit for perfection led to the making of better and better products that helped enhance the lives of many millions of people around the world. They went on to make the most popular car in the world which sells at the rate of one every 40 seconds (1). They made the the most popular car in the Middle East the often revered and feared 5.7L beast (2).
But cost cutting and losses to the tune of 4.4 billion in the first annual net loss registered by the giant in 59 years has probably led to a downward spiral and has resulted in the grim situation faced by it today. Herculean efforts at cost cutting to save around 8 billion this year seem to have all gone down the drain as the automotive giant that survived two separate but giant recalls last year in the US halts all production of eight of it's most popular vehicles in an effort to contain damage.
Last week they announced the recall of 2.3 million vehicles after a major defect was seen in the gas pedals. But all this action does not seem to have affected the markets here as the cars continue to sell like hot cakes even as stocks slid down 4.7% in a single day.
But I am sure the giant will pull put of it and continue making amazing cars in the future as their principles have been impeccable in the past. (3)
Which leads us to the question of consumer rights. How come the public here have not been informed of this potentially fatal flaw? The cars from this company probably outnumber cars from all the other Japanese manufacturers put together on local roads. So why are people not being informed and why do sales continue like nothing has happened? Or is it because huge corporations feel intimidated only by the consumer rights of people in the Western world? Why are these potential death traps on sale here? I wouldn't like to share the road with a car which may accelerate for no reason.
My point is WHY do people just not care about consumer rights in this part of the world? People speak up. It's your hard earned money, your rights and most importantly the lives of you and your loved ones that is at stake here.
Ps. Kindly read the links posted below.
http://www.businessweek.com/news/2010-01-27/toyota-quality-image-may-be-finished-as-sales-output-halted.html
http://abcnews.go.com/Business/wireStory?id=9679777
http://abcnews.go.com/Business/wireStory?id=9679595
http://www.cbc.ca/canada/windsor/story/2010/01/27/toyota-recall-sales-suspension.html
http://www.freep.com/article/20100127/BUSINESS01/100127041/1002/NEWS01/Toyota-and-dealer-stocks-take-a-hit-from-sales-halt
http://online.wsj.com/article/SB20001424052748704905604575027671658649384.html
http://online.wsj.com/article/http://www.reuters.com/article/idUSTRE60Q6CY20100127.html
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