Toyota Motor Corporation - Losing 'The Toyota Way'?

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Case Details:

Case Code : BSTR385
Case Length : 20 Pages
Period : 2005-2010
Pub Date : 2011
Teaching Note :Available
Organization : Toyota Motor Company
Industry : Automotive
Countries : Japan; Global

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts cont...

And quality deteriorates

The product quality related problems with Toyota came to the fore in August 2009, when a Lexus accelerated out of control, leading to the death of all the four occupants...

Managing crisis

Industry experts opined that Toyota's response to the crisis had been slow. Akio admitted that the delays in response reflected the hubris and arrogance that Toyota had developed over the years...

The aftermath

Toyota was fined US$ 16.4 million by the National Highway Traffic Safety Administration for its slow response to the crisis. The company also had to spend millions on advertising and reportedly was on the verge of paying billions in class action lawsuits...


Exhibit I The Toyota Production System
Exhibit II Toyota Motor Corporation - Vehicle Production by Region
Exhibit III Toyota Motor Corporation - Income Statements (2006-2010)
Exhibit IV Toyota Motor Corporation - Net Revenues and Operating Income By Region (2006-2010)
Exhibit V The Toyota Way
Exhibit VI Toyota Motor Corporation - Recall Timeline


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