Toyota hands over union 2006 letter to US watchdog (cost cuts had undermined the quality of its cars

[Omaha Steve]

http://www.ft.com/cms/s/0/b670c60e-2d0f-11df-8025-00144feabdc0.html

By Jonathan Soble in Tokyo

Published: March 11 2010 13:27 | Last updated: March 11 2010 13:27

Toyota has handed over to US lawmakers a 2006 letter written by Japanese employees warning that aggressive cost cuts had undermined the quality of its vehicles.

The letter, from a small dissident labour union, was sent to Katsuaki Watanabe, Toyota’s former chief executive, and accuses the company of “sacrificing safety” by curtailing vehicle testing and hiring thousands of “amateur” short-term contract workers.

Toyota turned over the letter at the request of Edolphus Towns, the New York Democrat who chairs the House Oversight and Government Reform Committee, one of several congressional committees investigating accelerator-related problems in millions of the company’s vehicles.

At the time the union registered its complaints, Toyota was struggling to contain an increase in the number of defects affecting its products. Between 2000 and 2006, the carmaker recalled an average of about 1m cars a year – a sharp rise on previous periods.

Concern over the defects reached a peak in mid-2006, when Japanese police launched an investigation into the company over the crash of a Toyota Highlander sport utility vehicle – one of the recalled models – that injured five people. Prosecutors eventually dropped charges of professional negligence against three executives in the case.

The same year Mr Watanabe ordered a broad review of Toyota’s quality control – a review whose effectiveness is now being questioned in light of the recent recall crisis. Toyota declined to comment on the complaints made by the workers’ group, the All Toyota Labour Union.

FULL story at link.

[jody]

1. Why worry about quality when marketing hype can convince Americans to buy Toyota? n/t

[AlecBGreen]

2. i think they are coasting along

riding the idea that 'toyota makes a good car...'

maybe that was true in the past but if today's stories are to be believed, their golden age may be behind them

[progressoid]

3. Damned selfish unions

guess I should add this :sarcasm: