Expert: Toyota shutdown could impact company’s long-term sales

RP news wires
Tags: manufacturing

Art Wheaton, Cornell University automotive industry expert, comments on the impact of accelerator-part problems in several Toyota cars and trucks. He is the senior extension associate in workforce, industry and economic development in Cornell's School of Industrial and Labor Relations.

He says: “Toyota has taken the unprecedented step of closing down most of their North American production and stopping sales of eight of their most popular vehicles in the United States. Toyota has been repeatedly forced to change its strategy concerning the accelerator parts found in their most popular vehicles. Toyota originally blamed the deadly recall on floor mats and has now stopped producing and selling eight popular vehicles until a more permanent fix can be found.

“This repeated quality and safety recall has come at a bad time in corporate history and may impact long-term sales and profits for Toyota. Toyota is currently assessing what to do about the vehicles on sale in Europe with the affected parts. Toyota is a global company with a global supply chain facing global headaches in a tough market.”