Economics-toyota fafa

Toyota Cars Recall

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Toyota Cars Recall

The recent global recall of Toyota cars adds to the list of Toyota vehicle recalls dating back to September 1986 , when the National Highway Traffic Safety Administration recalled the first Toyota cars due to problems with speed control (Steinmetz , 2010 . Steinmetz goes ahead and points out that in April 2010 , the National Highway Traffic Safety Administration (NHTSA ) received a petition to investigate the throttle control in Toyota vehicles , a problem aggravated by an accident that kills a

family due to uncontrollable acceleration . She goes on to note that in December 2009 , the NHTSA met with the Toyota to plan on the process of vehicle recall which started in January 2010 . Since then more cars with brakes and anti-lock system problems have been recalled and the Toyota 's North American president and other company officials set to testify before the House Oversight and Government Reform Committee (Steinmetz , 2010 . Wearden (2010 ) notes that Toyota has been asked to pay a fine of ?10 .8m

Manufacturers have in the past considered product recall as the last option . This is because the implications of product recall are extensive . However , with the ever increasing litigious environment and increased awareness by the consumers on the potential liability claims have led to recall becoming a common move even when the risk is minimal .This article will look at the short and long term effects on demand of the Toyota vehicles . In analyzing these effects , the article will...