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TOYOTA Recall ProgramA Business Ethics Implementation on Worldwide Company

Group OneReza Aryabima ( 1040000466 )

Sutji Rahmatianur F ( 1040000112 )

Karim Taruna ( 1040000056 )

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B ACKGROUND

S eptember, 1933Found by Kiichiro Toyoda and Was build as a division of Toyoda Automotic Loom Works

1934Created first product, the type A engine and the first passenger prototype car A1

August 27 1937

Toyota Motor Corporation ( TMC) was established as an independent and separatecompany in Japan.1950

A separte sales company, Toyota Motor Sales Corporation was established, anddeveloped a new prototype car Land Cruiser which sell and expand to North America.

1960Expand a new research and development facility. A presence in Thailand was

established and the ten million model was produced, and built a partnership with Hinomotors and Daihatsu.April 1963

The first Toyota offices and stores was build at Port Melbourne, Australia.

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B ACKGROUND

Toyota Worldwide Key peopleFujio Cho (Chairman and Representative Director)Katsuaki Watanabe (Vice chairman and Representative Director)Akio Toyoda (President and Representative Director)Shoichiro Toyoda (Honorary Chairman)

Type of Industry :AutomotiveRoboticsFinancial ServicesBiotechnolgy

Products :Luxury Vehicles / AutomobilesEconomy / Financial Services

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Issu e s and Challenge s

In January 2010, Toyota s Announced thetechnical fix for its sticky gas pedal, which canlead to sudden acceleration problems

Having already halted sales and production of eight of its top-selling cars in the United Statesand recalled more than 9 million carsworldwide,

By having the recalled program, Toyota facesthe prospect of billions of dollars in chargesand operating losses

Toyota Motor Corp, must maintain a goodcorporate reputation in the 21 st century, whichis tricky business indeed

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Et hical Dilemma s

Cost vs Credibility?

The offending gas pedal assembly wasmade for Toyota by a company called CTSof Elkhardt, Indiana

Who s to blame?

TOYOTA or CTS

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The Ac t ion

On January 21, Toyota announced its intention to recall approximately2.3 million select Toyota Division vehicles equipped with a specificpedal assembly and suspended sales of the eight models involved inthe recall on January 26:

Certain 2009-2010 RAV4Certain 2009-2010 Corolla2009-2010 Matrix2005-2010 Avalon

Certain 2007-2010 CamryCertain 2010 Highlander

2007-2010 Tundra2008-2010 Sequoia

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The Af t erma t h

A precision-cut steelreinforcement bar will beinstalled into the assembly thatwill reduce the surfacetension between the frictionshoe and the adjoining surface

The company has confirmedthe effectiveness of the newlyreinforced pedals through

rigorous testing on pedalassemblies that had previouslyshown a tendency to stick

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Toyota Sales

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Concl us ion

1. Aggressive growth can createunmanageable risk

2. Get the facts quickly and manage yourrisks aggressively

3. Your supply chain is only as

strong as your weakness link

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H aaaiiiik!