Toyota Motor Corporation Essay Example | Topics and Well Written Essays - 3000 words

Toyota Motor peck - Essay ExampleToyota started announcing recalls of 8 9 millions after reports of 2000 fatal accidents and 19 deaths from its defective vehicles with accelerator and brake pedal issues. By February 2010 (just in the first place ending of fiscal year on March 31), Toyota had recalled expertly 2 million vehicles from its main markets that as well reflected in Income Statement, Cash Flows and Balance Sheet. In fact, the assets and liabilities / debts section were greatly affected from that recall because sales declined and products recalled simultaneously. Toyota Corporation estimated that recall would cost, at least, $2 billion in 2010 2011, which may increase in near next if suppliers would increase raw-material / inputs prices followed by high labour expenditures. It is worth mentioning that Toyotas sales in North America bring down by 16% alone in February 2010 in comparison to February 2009 just after the recall. On the other(a) hand, the competitors oper ational in American markets were among the actual beneficiaries, since General Motors recorded sales increase of 15%, cover observed a growth of 24%, Nissan recorded the growth of 15%, and Hyundai observed a phenomenal 24% growth in USA. Indeed, the recall enabled Ford Corporation to become second largest automobile vendor across North America after General Motors.The recall sabotaged Toyotas strategic and financial slip because customers started switching to other brands, which later resulted in decline in market share. This just happened when Toyota had certain plans / aspirations to further from improvements in global economic outlook. Without any doubt, the company in the short - run has been unable to win trust of potential customers and maximise its monetary gains because of additional repair and delivery costs to be incurred from this recall. In addition, the loss of goodwill and reputation alone could prove quite devastating for company in near future when it will launc h newly developed products. For instance, potential customers and industry analysts may raise questions almost safety, security and reliability of Toyotas vehicles. In a nut shell, it is justified to argue that Toyotas rest period sheet figures (assets and liabilities) position will deteriorate in fiscal year of 2011 because of mixed consumer confidence on Toyotas market offerings.