Wednesday, October 27, 2010

The Year of the Recall

Toyota recalled 750,000 Lexus and Avalon cars this past week, which marked the corporation’s eighth recall in the past six months. However, Toyota is not the only auto maker to recall their vehicles this year.

Also last week, Chrysler recalled over 26,000 vehicles with power steering problems, while Volvo recalled almost 10,000 cars for airbag complications. Shockingly, CBS News.com reported that news of these safety announcements was nowhere to be found on their company websites. Additionally Honda says it is also planning a recall for brake fluid leaks.
It appears that everyone is jumping on the recall bandwagon. Within the last six months, GM and Nissan have had seven recalls, while BMW, Chrysler and Ford had five each. Overall, the auto industry has had 56 safety recalls for passenger vehicles, according to government data. I began to question the automotive industry as a whole. Are automotive tycoons cutting back on safety procedures and selling cars that are inadequate?

According to a blog by Laurent Belsie, the author suggests no. Belsie states that a J.D. Power and Associates survey showed that overall car quality actually went up this year. In addition, Belsie believes the recalls may be evidence that auto makers are becoming more proactive by addressing potential hazards before they lead to accidents.

Although I am skeptical of Belsie’s suggestions, I did take a look at J.D. Power and Associates website. I was happily surprised to see that Toyota’s Compact Crossover SUV, the FJ Cruiser, made the list for customer quality recipients.



With all this talk of recall in the news media, one would think that the auto industry is hurting hard for money. However, for Toyota, it has not hindered business. The corporation has announced that sales were up 16.8 percent this September as compared to last year.




That's all for now!!

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