Posts Tagged ‘toyota’

Turbulence in automobile industry..

March 9th, 2010

turbulence

turbulence

After the season of recalls, it is now time for the major players to reshuffle their stakes. The reason may be the unpredicted growth in automobile sales all over the world in the month of February. The recovery of JLR sales have increased the SPI of TATA Motors which in turn triggered Daimler to sell its 5.34% stake. Daimler, also plans to enter India by investing more than Rs.4000 crores for which it had collaborated with Hero Honda. However, the deal was called off. Now, after raising cash from stake sale at TATA, Daimler might strategically enter India and other developing nations.
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Fashion of recalls!

February 24th, 2010

maruti a-star
The automobile companies have made it a habit to recall their vehicles or is it the season of recalls. This time it is neither Toyota nor Ford but it is India’s largest seller of passenger cars Maruti. Last year it launched its A-Star in Europe to cater to the entry segment cars. The Indian version of this car already has a big pie in the small car segment. However, the 100,000 A-Stars exported is said to have some problem with oil seals (o-rings) which failed in a number of instances.
Why so many recalls?
I think that the quality checks performed before launch of the cars are not being followed religiously or there is a loophole which is being exploited liberally or the recession has made the companies to cut cost at the cost of quality. In-spite of knowing the fact that such recalls may tarnish the brand image of the company, the companies give green flags to new models to reap the benefits of first mover advantage in respective segments. Let us hope that these organizations at least continue to own responsibilities for such debacles.

Rogues

Toyota’s calls and recalls

February 14th, 2010

Cause of Toyota recalls

Global automobile giants like Toyota and Honda created a furor among their customers by announcing massive car recalls. Toyota plans to recall more than eight million vehicles while Honda has to recall more than one million. Toyota says that the drivers of these vehicles have reported unintended acceleration of their vehicles which is caused by the improper design of the pedal and the floor mat. Honda vehicles are facing problems with airbags and a switch which could cause fire. To rectify these defects a massive reverse logistic exercise will cost them millions of Dollars.
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