Toyota Motor Corp. is a global company that symbolizes Japan’s manufacturing might. But now, consumer confidence in the safety of Toyota cars, the very foundation of the company’s international competitiveness, is being badly shaken.

Problems with accelerator pedals in popular models in North American and European markets have forced the company to recall millions of vehicles worldwide and suspend production and sales of several models in the United States.
These developments have begun to make customers feel less secure about the quality and safety of Toyota’s products. The rapid succession of recalls has tarnished the carmaker’s image, which was cultivated through years of steady effort. The blame for Toyota’s safety woes should fall on the company’s management.
One factor behind the current predicament is Toyota’s rapid globalization, which has apparently seriously affected product quality. The gas pedal component in question is supplied by a U.S. maker. It appears Toyota failed to ensure the supplier’s products were free from design flaws and quality problems.
The way Toyota dealt with the recall crisis shows troubling signs of the overconfidence and complacency that have infected the manufacturer as it passed G.M. to become the world’s No. 1 automaker.
While the problem has become global, Toyota has not offered an adequate explanation to customers in Japan and other countries that have not been affected so far.
Some recent consumer surveys in the United States have shown Hyundai Motor Co. of South Korea outperforming Japanese makers in terms of product quality.
Japanese carmakers still hold the lead in development and commercialization of next-generation cars like hybrid and electric vehicles. With international competition getting fiercer by the day, however, there is no room for complacency.
As next-generation cars become more popular, there will be a major shakeout in the world car industry in which manufacturers with unsatisfactory safety and quality records face the danger of being weeded out.
In the 21st century, the world will likely go through turbulent periods as radical changes in market structure and transformative technological innovations take place simultaneously.
Under such circumstances, sensitivity to product safety and quality will be a vital factor for the competitiveness of all Japanese industries. This is a challenge not limited to the auto industry. Toyota’s current plight offers a cautionary tale that Japanese companies can only ignore at their peril