Did Toyota Overreach?

The car company's recent problems suggest a systemic issue. Did they simply grow too quickly?

We have all read about the problems that Toyota is having – sticky pedals, interfering computer systems, one recall after another – none of this is good for the world’s largest car maker.

Why is all of this happening now? Was it a culmination of years of declining quality that came to the surface all at once? Did Toyota grow too fast? Have their corporate principles changed? Did outsourcing change the way that they do business so much so that they lost all control of quality?

Toyota’s leadership changed a few years ago, and with it came a change in attitude. It was no longer good enough to be the best; they wanted to also be the biggest. Can anyone blame them? It is only natural that, when you are the best at something, you want to grow.

But can a company be both the best and the biggest in the auto industry? History tells us no. General Motors was the biggest for a long time, but has not been the best for years.

If it is true that these troubles are due to Toyota growing too fast and sacrificing their principles of quality, while at the same time trying to suppress stories of sticky pedals and other issues from customers, then they have a large hill to climb to get their reputation (and customers) back.

In the case of the sticky gas pedals, the contracted manufacturer said that it followed Toyota’s specifications to the letter, something that Toyota has acknowledged. This means that the issue stems from Toyota’s engineering and design, not the manufacture of the cars.

Were they in a rush to get the new design out? Have they grown so large that they have difficulty collaborating with others? Did they eliminate quality checks and internal reviews?

We may never find out the answers to these questions. But one thing is clear – these issues did not come to bear overnight. There is something systemic that needs to be addressed.

All of this tells us that we can never rely on the past to guarantee future success. Toyota has been synonymous with quality and efficiency, having found a way to build high-quality cars for a reasonable price. They may now be losing that reputation. It will be interesting to see what happens. It has taken other car companies years to shake poor reputations attached to them when they made a few big mistakes, and Toyota is trying to recover from their biggest mistake yet.