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QualityDivision312TROUBLEDAMAGEREVIEWDeepimpactonToyotaCrackonToyotalegacyGlorydaysofToyotaGlorydaysof...Production/sales#1for3years(2007~2021)Qualityaward#1inlatest10yearsBrandvalue#1for6years(2004~2021)Bestquality=Lexus-likeHowdoyouspellquality?L–E–X–U–S!*Source:レクサスが一番になった理由,BobSliwa-Source:edmunds/Jun.29.2005-Appealtocustomerswithachievingtopquality

-IQSNo.1forthe9thconsecutiveyear(’97~’05),-VDSNo.1forthe13thconsecutiveyear(’95~’07)LEXUS-likeAdj:Meansbestproductandqualityinautomotiveindustry...Quality20012003200520072009830859838937781

1.Toyota6916788128907202.GM5936546216196293.VW5115726136165704.R/Nissan4995365245964815.Ford4504364863964646.H/K3183293723833397.Honda2673053393433198.PSA2652913392682319.Suzuki*Source:AutomotiveNewsDataCenter(’09DATA,summaryinpressrelease)(unit:10,000)Rapidquantitativeexpansionafter2000...

Topmakerratedafter2007Global#1insalesinautomotiveindustry...SalesBesttopbrandBrandvalue*Source:Businessweek&Interbrand,2021Toyota193Honda149Ford109Cadillac102Benz10012345BrandimageSource:ConsumerReports,2021<2021brandperceptions>ToyotaBenzBMWHondaFordVWAudiHyundaiPorscheFerrari1234567891032.323.921.717.87.06.55.04.64.23.5(unit:$Billion)<2021Bestglobalbrands>(unit:points)inautomotiveindustry...BrandSucceedonbothcategory...CorporationandQualityRoleModelforAllIndustry...System97652250?51NumberofpublishedbookbymakerAllofcompanywanttobenchmark*Source:Amazon,Search“ProductionSystem〞31RelatedBooksaboutToyota>RelatedbooksaboutgloballeadingmakersToyotaproductionsystem...GlobalrolemodelMotivepowerofToyotagrowth…QualityOutstandingqualityleadsbrand,sales,productionSystemBrandSalesProductionSystemMostreliablecar

(2005.10?)-Toyota:15/31modelCRReliabilityLexusNo.1for9years

(1997~2005)JDPIQSJDPVDSLexusNo.1for13years

(1995~2007)Segmentwinner;10/18(2005)“ToyotaCar=QualityCar〞GlorydaysofToyota12DeepimpactonToyota3TROUBLEDAMAGEREVIEWCrackonToyotalegacyCrackonToyotalegacy...Security?Electronic?Braking?Body?Interior?Chassis?Toyotasalesvs.recallsinU.S.ProgressofsalesandrecallsofToyota※Source:AutomotiveNewsDatacenter(‘03~’09),NHTSASalesRecalls(Unit:Thousand)‘06‘09‘03‘04‘08‘071,8662,0602,5432,6202,2181,7702001,0576575859504,870QuestionsgrowonToyotamanufacturingquality...

Sales↑,Recall↑IncreasingrecallToyotasellsintheU.S.hasgrown,butthenumberrecalledhasrisenmore(2005,2021year)‘052,2302,262RecallDomino?...ToyotaLexusPriusEvenPrius,theprideoftech.

...brakesystemrecall●●●①

Body

parts...frame

Interior

parts...floormat

Braking

concern...brake④

Electronic

parts...windowcontrolsys.⑤

Securityparts…seatbelt⑥

Chassis

parts...gasPedalStuckOn-goingToyota’srecall(allkindsoffeatures)Lexusisontherecalllist......fueldeliverypipe&brakesystemrecall①BodypartsNov.24.2021Framecorrosion

;Tundra…110,000TheNationalHighwayTrafficSafetyAdministrationtoldownersofsome2000-2003ToyotaTundratrucks"toremovesparetiresmountedunderneaththebodyofthevehicle.Excessivecorrosionduetoroadsaltscancausetherearcross-memberofthevehicleframetofailandallowthesparetiretofallontotheroadwayatanytime,creatingaroadhazardforothervehicles.NHTSAsaidthecorrosionmaydamagetherearbrakelinesandleadtobrakesystemfailure〞.Lastyear,Toyotaofferedtobuyback1995-2000modelyearTacomapickupswhoseframeswererustedbeyondrepair.HistorySuspicion②InteriorpartsOct.2.2021Floormats;8kindsofvehicles(includingCamry)...3.8MThoughToyotarecalledaccessoryall-weatherfloormatsin2007forsimilarproblems,NHTSAnotedthatreportsof

vehiclesacceleratingrapidlyevenafterthereleaseofthepedalhavecontinued.Toyotaissuedasafetywarningfor3.8millionLexusandToyotacarsbecauseofpotentiallydeadlyfloormats...NHTSAandtheautomakerwarnToyotaandLexusdriversofcertainmodelstoremovethatfloormatssoonerforsafety.<Toyota>2007-2021Camry2005-2021Avalon2004-2021Prius2005-2021Tacoma2007-2021Tundra<Lexus>2007-2021ES3502006-2021IS2502006-2021IS350③BrakingconcernAug.26.2021Brake

;Corolla,Scion...95,700

CorollaScionxDPCVSystemToyotaMotorCorp.isrecallingabout95,700ToyotaandScionvehiclessoldintheU.S.becauseicecouldaccumulateontheirbrakingsystemsandmakeitharderfordriverstoslowdown.Therecallinvolves2021and2021modelyearToyotaCorolla,Matrixand2021and2021ScionxDvehicles,allequippedwith1.8literengines,thecompanysaidinastatementtoday.Ifpeopledrivethecarsinextremelylowtemperatures,icemayaccumulateatthebrakesystemportanddecreasebrakingpowerandlengthenvehiclestoppingdistances,Toyotasaid.Sincetheconditioncanhappenatlowtemperatures,④ElectronicpartsAug24,2021Windowcontrol;Camry,Vios,Yaris,Corolla…688,314InitslargestrecallinChina,ToyotaMotorCo.isrecalling688,314Chinese-madesedansbecauseoffaultyelectronicwindowcontrolsystems.

Therecallaffects384,736CamrysedansmadebetweenMay15,2006,andDec.31,2021;245,288CorollasedansmadebetweenMay17,2007,andDec.25,2021;35,523ViossedansmadebetweenFeb.18,2021,andDec.25,2021;and22,767YarissedansmadebetweenMay15,2021,andDec.31,2021…windowcontrolmodulePartofmuchgreaseapplication⑤SecuritypartsJan.2021Seatbelt

;Vitz,Belta&Ractis...1.36MToyotaMotorCorp.,theworld’slargestcarmaker,willrecall1.36millioncarsinJapanandoverseastofixfaultyseatbelts,exhaustsystemsorboth.Toyotawillrecall525,898Vitz,BeltaandRactismodelsinJapanbuiltbetweenJanuary2005andApril2021,itsaidtodayinafilingtotheJapanesetransportationministry.Thecarmakerwillalsorecallabout830,000ofthethreemodelsexportedoverseaswiththefaultyseatbelts,spokeswomanYasueKatosaidbyphonetoday.BeltaVitzRactisseatbeltpretensionerSuspicionStop⑥ChassispartsJan.22,2021

Acceleratorpedal

;8kindsofvehicles2.3M

?2021-2021RAV4

?2021-2021Corolla

?2021-2021Matrix

?2005-2021Avalon?2007-2021Camry

?2021Highlander

?2007-2021Tundra

?2021-2021SequoiaAmechanicalproblemcouldcausethegaspedalstostickandcauseunwantedaccelerationin2.3millionofitsvehicles,includingrecentmodelsofitspopularCamryandCorollasedans.(1.7millionwereincludedinthefloor-matcampaign)"Theconditionisrare,butcanoccurwhenthepedalmechanismbecomeswornand,incertainconditions,the

acceleratorpedalmaybecomehardertodepress,slowertoreturnor,intheworstcase,stuckinapartiallydepressedposition."…TheautomakerfirstheardcomplaintsaboutpedalmalfunctionintheTundratruckinMarch2007.Lexus...corrosionJan.16.2021Fueldeliverypipe;214,500vehiclesToyotasaidFridaythatithaslaunchedasafetyrecallofabout214,500LexusvehiclessoldintheU.S.duetothepotentialcorrosionofthecars'fueldeliverypipes.TherecallaffectsGS300/350,IS250/350,andLS460/460LLexusvehicleswithmodelyears2006through2021.AccordingtoToyota'sstatement,someethanolfuelswithalowmoisturecontentmaycorrodetheinternalsurfaceofthefueldeliverypipes,resultinginafuelleakovertime.Thepipecorrosionmaytriggerthemalfunctionindicatorlightinthevehicles,thecompanysaid...FuelleakPrius…notworkingFeb.6.2021Brake;270,000vehiclesTheNationalHighwayTrafficSafetyAdministration(NHSTA)isassessing124reportsfromowners

abouta

momentaryreductioninbrakingperformancewhiledrivingonroughorslickroads.

Itsaidtherewere

fourreportsofaccidentsduetoabrakingproblem.

Toyotaispreparingtoannouncea

plantorepairthe

brakeson270,000hybridPriuscars

soldintheU.S.andJapaninthepastyear.Wordoftheplanaffectingthe2021modelyearcarwasrevealedinalettere-mailedtoToyota's1,200U.S.dealersFridaynight.ExpansionToyota,Recall?Recall?Recall?“Toyotahassacrificeditslegendaryqualityinrecentyearstoreachthegoalofbecomingtheworld'sNo.1automaker…〞-Nov.26,2021--Oct.5,2021-“Toyotahasmademistakes–addingtoomuchcapacityandgrowingarrogant...〞Jan.27,2021...focusonrapidgrowthappearstohavecomeatacosttoitsreputationforquality…QualitymistakesbecomedisastertoToyota...GlorydaysofToyota123CrackonToyotalegacyTROUBLEDAMAGEDeepimpactonToyotaREVIEWDeepimpactonToyota...Sales...Brandimage...Resalevalue...Resalevalue...Trade-invalueofa2021ToyotaCamryhasfallenby4percentto6percent($13,967=>$11,233...couldfallupto10percentinshorttermDefectionRetentionValue

ContinuousdeclineKBBlowersrecalledToyotaresalevalueagainKelleyBlueBookloweredtheused-carvaluesofrecalledToyotasforthesecondtimeintwoweeks.

It

initiallydecreased

thevalueoftherecalledvehiclesby

1%to3%

butfollowedthenextweekwith

anotherdownward

tickof

1.5%.

February9,2021February9,2021ThelowestmonthlysalessinceJanuary1999Toyota’ssalesslumpedto98,796from117,287,thelowestmonthlytotalfortheToyotaCity,Japan-basedautomakersinceJanuary1999,basedondatacompiledbyBloomberg.FordoutsoldToyota,reversinglastyear’spattern.

;Toyotasalesslide16%afterrecallasGM,Fordgain-Feb.2,2021-25%’09.1117,287’10.198,796’09.1128,198’10.1146,315’09.193,044’10.1116,277*Source:AutomotivenewsdatacenterU.S.autosales,January2021H/K13%VW40%DaimlerAG26

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