Toyota Screwed Up - But Who's Going To Pay For It?

By
Real Estate Agent with Douglas Elliman Real Estate in Babylon NY

Toyota Screwed Up - But Who's Going To Pay For It?

A few million Toyota cars were recalled due to the gas pedal sticking. Those 8 models represent 57% of Toyota's 2009 U.S. sales.

Toyota dealerships across Long Island and the rest of the the country have to halt sales. They spend hundreds of thousand of dollars for new inventory. Toyota has asked those dealerships to not discuss the financial situation with consumers. They are being told to call Toyota. Oh right, that's going to help.

6 of Toyota's North American manufacturing plants will stop manufacturing on February 1st and there is not a date set for manufacturing to resume.

Toyota shares in Tokyo Wednesday closed down 4.3%—its trading volume was twice its 25-day moving average—while the benchmark Nikkei Stock Average of 225 companies closed down 0.7%.

Seems to me that quality control fell asleep at the wheel (yes, pun inteded). Because of this, it's created a domino effect. That leads me to this.........

Who is going to pay for this "mistake"?

Hundreds of thousands of employees that's who.

Toyota spokesman Mike Goss said most workers were expected to be at their jobs during the assembly line shutdown. Workers will receive additional training or work on improvements to their assembly processes. They can also take vacation or unpaid leave, he said.

And how much vacation time do they get? Will it be enough to hold them over until this mess is cleaned up?

And how many can actually afford to take unpaid leave? Probably not a lot.

Seems like Toyota's quest for market-share dominance has compromised quality and the employees and shareholders are going to pay for Toyota's mistake.

 

Comments (6)

Jon Budish
Resident Realty - Fort Collins, CO

Hopefully they'll resolve the problem quickly, make drivers safe, and get their employees back to work. We don't need any more unemployment.

Jan 27, 2010 03:32 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Jon, I hope you are right. It's going to be interesting to see how this plays out. No more unemployment and certainly no more bail-outs either!

Jan 27, 2010 03:34 AM
Susan Brown
Keller Williams NE, Kingwood Texas (Humble & Atascocita too) - Kingwood, TX

Jackie, Good point on where the bottom line is going to come to rest - I too hope they get it resolved quickly so the workers don't have to suffer more.

Jan 27, 2010 06:52 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Susan, I agree. Someone told me today that only 16 cars out of those 2.3 million had the defect? That doesn't make sense.

Jan 27, 2010 07:06 AM
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

ToulaRosebrock,com

Hi Jackie:

WOW....that is definitely one thing that cars should not have!

Talk about accidents waiting to happen.

Jan 28, 2010 12:01 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Toula, that's the thing. Have you heard about any accidents? I haven't.

Jan 28, 2010 12:57 AM