@Risk

Toyota Motor Corp is revamping its supply chain, so that it can recover within two weeks after a massive earthquake like the one that devastated Japan this spring.

The March 11 earthquake and tsunami forced Toyota and other Japanese automakers to suspend much of their production for months. Even today, some parts of the supply chain have not been fully restored.

But now, Toyota is busy establishing a buffer against supply chain risks, Reuters reports.

According to the article, the company is focusing its efforts on three main areas: (more…)

Over the past year, Toyota has agreed to pay $48.8 million –or the equivalent of about $30 per Toyota vehicle sold in the US in 2010 –in fines related to multiple product recalls.

The two latest penalties, announced earlier this month, amount to $32.425 million –$16.375 million in one case and $16.050 million in the other –in response to the US Department of Transportation’s assertion that Toyota failed to comply with the requirements of the National Traffic and Motor Vehicle Safety Act for reporting safety defects to the National Highway Traffic Safety Administration (NHTSA).
(more…)

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…)

From Toyotas and Fords to airplane seats and black pepper –it’s only February 19 and unfortunately, it already appears that 2010 is becoming the year of the recall.

Of course, that also means that supplier relationships are in the spotlight like never before. Expanding global supplier networks are under scrutiny –and for good reason. In some cases, they have proven to be unwieldy, unpredictable, and untrustworthy.

Have you taken a hard look at your own supply chain? Are you doing all you can to mitigate the possibility of key suppliers reporting misleading information, shipping sub-par products, or otherwise cutting corners in ways that could come back to haunt your business? How can you protect yourself? (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…)