Wk 3 Essay Example | Topics and Well Written Essays - 750 words - 1

Wk 3 - Essay ExampleToyota overhauled its safety practices a few years ago after a rush of recalls for unintended acceleration resulted in a criminal penalty in March of $1.2 billion. General Motors has in recent past spent billions of dollars fixing recalled cars and setting up a fund to compensate ignition-switch throw victims and their families, the party has had to take extreme measures to restore trust in its products and management (Bapuji, 2012).In the period amongst 1999 and 2011, Toyota Motor Corporation had to recall some of its vehicles from the join States market in three instances. The first dickens instances came under the assistance of the U.S National Highway Traffic Safety Administration upon receiving reports a large numerate of vehicles from the union were experiencing unintended acceleration. The first recall was aimed at correcting a possible incursion. The second recall was cod to a possible sticking of the accelerator pedal that led to unintended accel eration.The recall impacted negatively on the company as it came at a time when it was struggling from recession and it had also suffered from a decrease in sales in the previous year. The period was also marked by a low exchange rate of the U.S dollar against the Yen. This further led to loss of about 750 jobs at the company in its bid to lower its operating costs. The company may also have been economically unnatural by the recall as the damage to Toyotas reputation negatively affected the resale value of used cars. The company was able to overcome the situation by making the undeniable correction on the recalled vehicles. It further ensured that the freshly cars that were in the production process were well checked and corrected so that they could not be recalled back. The United States government then allowed the sale of the companys vehicles into the country after they had done all the necessary inspection to ensure that the problems were well taken care of.Another case of r ecall