Toyota has issued the biggest recall in its history. Though Toyota issued recalls in the past, this time the recall is world-wide affecting millions of cars. The monetary loss is estimated at $2 billion. What is more at stake is the reputation. Like many Japanese automakers, Toyota has built its name on reliability. Unlike the previous ones, this recall is serious in nature because faulty gas pedals if stuck could result in high speed fatal accidents.
So would Toyota's reputation go down the drain? The company has been criticized for compromising its quality by producing too many models. It's tried to be everything for everyone. It's a big marketing mistake. You can not please everyone. You must know where your strength is.
Would this recall be the beginning of the decline for Toyota and one day the company end up like its American peers. The recall will definitely change the brand association. Reliability might not be a salient association from now on. Most of all, many customers will lose confidence in the brand. It will Toyota take a long time to win it back.
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