Toyota Recall Case Study

Problem Solving and the Toyota Recall Crisis Problem solving is a key component of organizational success and challenges even the best-equipped leaders, especially during a crisis. Toyota’s reputation embodies leadership in lean manufacturing and excellence in manufacturing quality products. Despite these strengths, Toyota failed to employ a successful and effective problem solving process during the organization’s 2010 recall crisis, resulting in significant financial loss as well as causing consumers to mistrust the Toyota brand. If Toyota had implemented a timely strategic response at the beginning of the problem solving process, in alignment with the organization’s culture and mission, then the organization may have witnessed a different outcome. This paper will explore a step-by-step problem solving process as presented by Colorado State University Online (2016) as it pertains to the Toyota recall crisis.

Toyota Motor Corporation Overview Founded in 1937, the Toyota Motor Corporation is a global automotive manufacturing company with products sold in more than 170 countries and regions (Toyota Motor Corporation, 2016). The Toyota organization, headquartered in Japan, operates under the leadership of the current president, Akio Toyoda. As a global

But, since 2007, consumers lodged complaints with the company regarding potential vehicle defects like software glitches, brake system flaws, and acceleration pedal concerns (Piotrowsi & Guyette, 2010). Toyota was slow to acknowledge consumer concerns, but eventually the problem could no longer be ignored. The crisis peaked in 2010 when Toyota instituted a recall of more than six million vehicles due to consumer fears concerning sticking accelerator pedals (Rechtin, 2014). At this point, Toyota was forced to respond to the problem. The defined problem was safety concerns stemming from potentially faulty auto