@Risk

For Toyota, the bad news just keeps coming.

Now, ABC News is reporting that U.S. regulators are reviewing more than 60 complaints that the fixes made on Toyota cars recalled for unintended acceleration have not solved the problem.

Toyota says a partial review of these complaints has found no evidence of failure in the electronic throttle system or in the repairs. The company also says it hasn’t found problems in the brake override system.

Still, there’s no doubt that news like this is making a very bad situation even worse.  As Toyota technology chief Takeshi Uchiyamada told ABC News, “The Toyota brand is in a deep crisis.”

How did we get to this point, where long-revered Toyota supply chain management strategies are now a cautionary tale? What lessons can be learned from this devastating series of global safety-related recalls? (more…)

Two weeks ago, the Toyota recall put the spotlight on supplier collaboration.

Now, Ford has announced that it will update brake-related software on its 2010 Ford Fusion Hybrid and Mercury Milan Hybrid, and there are new questions about the safety of 2009 – 2010 Toyota Corollas and 2005 – 2009 Chevrolet Cobalts.

In short, what seemed at first to be an isolated brake problem has mushroomed into something more. Now, it appears that vehicle manufacturers (VMs) are awakening to the potential dangers of the increasing electronics and software content in today’s cars.

Many electronic automotive technologies (the advanced driver assistance systems (ADAS) and anti-lock brake systems (ABS), e.g.) have long been perceived as safe and dependable.  But, the recent recalls have made me wonder, could we now have a case where cars have too much of a good thing? (more…)

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In the videoclip above, Matt Lauer from NBC’s Today Show interviews Jim Lentz, president and Chief Operating Officer, Toyota Motor Sales. Recorded earlier this morning, this is Lentz’s first interview since the troubled automaker has recalled nearly nine million cars worldwide because of sudden unintended acceleration problems.

Lentz says that the unintended acceleration stems from either:  1) entrapment of the gas pedal in the floor mat (an older problem that has been addressed with redesign of components), or 2) a sticking accelerator pedal (the newer, more serious, concern). (more…)

Analysts are expecting automobile sales to rebound this year as the economy improves, but by all accounts that I’ve seen, automotive suppliers aren’t out of the woods yet.

There is still too much capacity. Plus, many suppliers continue to face difficult credit markets.

The Detroit News reports that the Original Equipment Suppliers Association (OESA) recorded almost 60 automotive suppliers seeking bankruptcy protection in 2009.  200 others simply closed. (more…)

Reports from the Reuters Auto Summit, which is taking place this week at Reuters’ offices in Paris and Detroit, tell the story of just how hard the recession hit automotive suppliers.

Industry execs at the Summit said suppliers are the now the most at risk in the entire sector. Automotive suppliers should anticipate a wave of consolidation as businesses try to regain footing by restructuring, boosting economies of scale, and accessing new technologies. (more…)