Toyota is to pay a fine of $32 million to the US transportation department for not notifying them on the safety issues in the stipulated time. The auto giant has agreed to do so and this it hopes will bring an unfortunate year to an end.
In a year of major reputation crisis Toyota had it the worst in the auto sector with the recalls and the reputation blitz that followed. Toyota was the worst performer among major automakers in the U S this year, with a rise of just 0.2 percent in its single-biggest market.
While the famed management style – ‘ The Toyota Way‘ may have been great all these years, being such a global leader with a huge US market and managing it all from far far away has had its effects. Traditional management rules from Toyota city, in Japan, probably brought out these problems in the first place.
As far as business reputations go the automaker has had its worst year till date. Recalling 11 million vehicles worldwide and now being slapped a record fine has brought up the pay-out made by the company to nearly $50 million. And billions could follow if related lawsuits succeed.