Wednesday, February 10, 2010

Did a Secretive Culture Lead to Toyota's Problems?

It seems like hardly a day goes by without more bad news for Toyota. It went from sticking floor mats to sticking gas pedals to faulty brake electronics to faulty steering components and now, today, a recall for a power steering hose in 2010 Camrys. How did a company so famous for its manufacturing processes, obsession to detail, prized for its quality and lean efficiency, stumble so badly? In a provocative Page 1 article, the Wall Street Journal suggests that the answer may lie in the secretive Japanese culture that surrounds Toyota, depriving the U.S. subsidiary of any real decision making authority and understating the problem until it was too late. The most startling part of this story is description of NHTSA officials when they found out Toyota knew about the runaway acceleration problems for almost a year before telling them -- they were "steamed."

Delay in Response Led to Rift Between Toyota and U.S. Regulators - WSJ.com

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