Toyota Fiasco

Though hundreds of automobile manufacturers exist nationwide, few have been as successful as Toyota. Founded in 1933, Toyota gained a reputation of dependability, affordability, quality, and durability. However, in January of 2010 the company would withstand a dangerous recall, which threatened the company’s reputation and hurt them financially. Many wondered how a small easily preventative problem could affect a company so large and so successful. However, this problem was not a production issue, it was brought about by the lack of effective management. Toyota Motor Corp began in 1993, as a division Toyoda Automatic Loom Works devoted to the production of automobiles. This new division of the company, called Toyoda, was under the direction of the founder’s son, Kiichiro Toyoda.

Toyoda produced its first automobile in 1935, the model A1. The company established itself as a separate company in 1937 and was renamed Toyota Motor Co. Though Toyota faced some difficulties and financial threats subsequent to World War 2, the Korean War helped Toyota regain success, with an order of over 5000 vehicles from the United States Military. Toyota began international expansion and Toyota Motor Sales U.S.A, Inc. was formed October 31st 1957. The Corona was the first popular Toyota automobile in America. It included a powerful engine, factory-installed air conditioning and an automatic transmission.

The introduction of the Toyota Corona helped increase U.S. sales threefold in 1966 to more than 20,000 units. With the production of other automobile designs, Toyota had gained a reputation in the U.S. of quality and reliability and in July of 1975 had become the best selling import brand in the US. In 1989, Toyota established a luxury line of vehicles with the debut of the Lexus LS 400