Productivity push sacrificed quality for Toyota
According to a company memo, managers at Japanese automaker Toyota Motor Corp. warned executives in 2006 that the firm's productivity push sacrificed quality.
The Los Angeles Times reported on Monday that Union veteran Tadao Wakatsuki was one of six managers who sent a two-page memo that warned the 36 percent recall rate from 2000 to 2005 was an alarming figure.
The incident is one of several warnings about quality and production the company received in recent years as it geared up production to take over General Motors' spot as the top selling automobile company.
Wakatsuki said," We used to test every one of our cars for safety and quality. Now we do maybe 60 percent. The old 100 percent is a thing of the past."
Toyota conducted "secret recalls," by calling car owners in for a checkup in which a defective part was replaced, said Fumio Matsuda, founder of the Japan Automobile Consumer Union and called the Ralph Nader of Japan.
He further said," I believe there will eventually be criminal charges. They knew there were problems with their cars, but they didn't do anything." (With Inputs from Agencies)