Unintended Acceleration: Toyotas Recall Crisis Harvard Case Solution & Analysis

In late 2009, Toyota became the subject of media and the U.S. government check after numerous deaths and injuries were attributed to accidents as a result of unintentional and uncontrolled acceleration of its vehicles. In spite of the voluntary recall of 4.2 million Toyota vehicles for floor mats that could jam the accelerator pedal and later recalled to increase the space between the accelerator pedal and the floor, the company insisted that there was no basic defect and to protect themselves from the media and regulatory reporting that think differently. As the crisis escalated, Toyota has also been criticized for failing to share information from its data recorders of the possible problems with the electronic throttle control and sticky accelerator pedals and brake problems with the Prius. By that time, Toyota Motor Company president Akio Toyoda apologized in his speech to the U.S. Congress, the stock price of Toyota were down, a little more than a month, 20 percent, $ 35 billion loss of market value. "Hide
by David Austen-Smith, Daniel Diermeier, Eitan Zemel Source: Kellogg School of management, Northwestern Univ. 16 pages. Publication Date: January 1, 2012. Prod. #: KEL598-PDF-ENG

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