A late breaking Wall Street Journal article published in the U.S. indicates that Toyota Motor Company will suspend dealer sales of eight different Toyota models that are involved in the ongoing product recall involving sudden acceleration of vehicles. Because of this suspension, Toyota is expected to suspend production of vehicles next week.
The models involved in the current recall include the Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sequoia and Tundra. Toyota had previously issued a recall of 2.3 million vehicles last week, along with other recalls in past weeks.
Needless to say, this development is unprecedented, and has potential far reaching impacts related to automotive supply chain disruption, if the suspension continues for a lengthy period. While details remain sketchy, Toyota has either reached a point of serious concern related to the safety of its vehicles, or is taking extreme measures to insure that the problem is root-cause identified and corrected. I suspect that the problem is far more than a sticky accelerator as noted in the Journal article, and probably more to do with engine control electronics. In either case, this is a significant development.
Supply Chain Matters will strive to provide more commentary as more information becomes available.
Bob Ferrari
Hello Everyone:
Toyota issued a press release with further clarification to the sales suspension. Here is the web link:
http://pressroom.toyota.com/pr/tms/toyota/toyota-consumer-safety-advisory-102572.aspx
According to Toyota, 5 production facilities will suspend production operations beginning on February 1st. They include facilities located in Indiana, Kentucky, Texas and Canada. While Toyota indicates that is not anticipating a lengthy shutdown, production will not resume until the problem of sudden acceleration is clearly identified and a mitigation plan is developed.
Bob Ferrari
Hello Again Everyone
I have penned a more in-depth Supply Chain Matters follow-up posting regarding the ongoing Toyota recall incident. You can view that posting at the following web link:
http://www.theferrarigroup.com/blog1/2010/01/28/the-toyota-dilemma-quality-safety-profit-and-risk-mitigation/
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