Is Toyota a victim of its own success ?

Quality considered as DNA of Toyota

Toyota's products were a byword for quality for customers so much so that its manufacturing techniques were followed by its competitors world over.

But in the mid-2000s Toyota expanded its production facilities rapidly in a bid to grow globally and to achieve its goal of becoming the number one auto maker in the world. Toyota's rapid growth affected its product quality with the company reportedly compromising on its manufacturing techniques. Customers began to face safety related problems in Toyota vehicles. 

Later a series of recalls followed which put the company's hard-earned reputation for quality at risk. 

• On January 21, 2010, Toyota Motor Corporation (Toyota) recalled 2.3 million select Toyota Division vehicles in the US. The recall was done to fix sticking accelerator pedals which caused unintended acceleration, leading to accidents. 

•  Earlier in November 2009 too, the company had recalled 4.2 million cars in the US to rectify accelerator pedals which were getting lodged under the floor mats of the vehicles.

• Subsequently on February 1, 2010, Toyota suspended the sales of eight of its popular car models involved in the recall and discontinued production at six of its North American car-assembly plants in response to growing customer concerns. The eight car models represented 57% of Toyota's sales in the US in 2009.

To verify the cause of recalls and improve quality, Toyota set up a committee headed by its president Akio Toyoda in early 2010. The committee was to inspect every process in the Toyota Production System (TPS - responsible for transforming the company from a small auto manufacturer into an iconic carmaker.) to ensure delivery of quality products to customers. .

 Analysts opined that constant recalls had damaged the reputation and brand image of Toyota and hindered its return to profitability. In a quest for market share, Toyota had sacrificed its legendary quality and ignored its own management principles and customers, they said.

Is Quality taking a backseat in Toyota and brand loyalty getting eroded?