Accelerating into trouble

The company’s problems sharply illustrate the failings of Japanese corporate governance

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Readers' comments




"most of the accelerator pedals were supplied by an independent American partsmaker" - It's a conspiracy I say!!!

But seriously, just like that? After all the years of engineering the best made vehicles on the planet (I never owned a Toyota, but acknowledge the preceding statement. I just love Nissan's flair for flashy designs...) that owners in Third World countries have ran for decades and we are to believe that somehow the "failings of Japanese corporate governance" is to blame? Sounds like someone who couldn't wait for them to fail...

The law of averages catch up with you eventually - ask anyone.


Suggesting that bringing in "a former American senator" as part of the solution at Toyota boggles the mind. How anyone responsible for one of the most perennially dysfunctional organizations on the planet could possibly benefit a perennially capable organization which has temporarily lost its way is hard to even imagine.


It is disappointing to see that automobile companies aren't learning from each other's experiences in the past (Mercedes-Benz in China, for example). Toyota could've done a much better job explaining the problem, getting the word out, and not dragging its feet. Hiding and denying the problems initially isn't an issue of Japanese corporate governance, as many other companies in many different industries have behaved in this manner as well when there is a product defect.

Hiring outside probably wouldn't have changed much. A foreigner sitting on the executive board does not magically have the ability to receive information and feedback about product defects better than the other people sitting on that same board. While I do agree that hiring outside helps to create diverse ideas, I do not think it is pertinent to the issue of the accelerator pedal defects. A recall doesn't mean that suddenly you need an outside executive.

Amir Akeel

SensibleGaTechStudent wrote:

"Sorry, I'll take the "failings of Japanese corporate governance" over the failings of American corporate governance."

generated2136527 wrote:

"And, you forget that Honda was also "attacked" by the diabolical combine."

Oh god, let's all jump on the band wagon and bash America with unsolicited comments. Really, I guess this giant nefarious entity called the United States must be truly powerful if we have to compare unrelated issues to it.

Amir Akeel

SensibleGaTechStudent wrote:


generated2136527 wrote:



I am unsure as to the wisdom of the suggestion that westerners on the Toyota Board would benefit anyone.

The Japanese did not know there was a problem before production. In fact, there was no Japanese problem. In fact the real problem seems to be that the Japanese trusted an American pedal-maker.

The Japanese apologized for a defect that was not intended by the Japanese.
How did Americans react to dangerous cars?
May I quote from Wikipedia:



End quote.

So, American executives KNEW there was a problem, cheaply solved, but preferred to go ahead and burn hundreds of Americans alive.
And they denied everything in court, case after case, lies upon lies.

Hey, I love America, and I love my Ford pickup, but lets not be so hard on those Japanese. Toyota did put an American on their Board, and let him in on their secrets, and the traitor quit and joined the competition. How could they ever, EVER trust ANY American again?

So I do not understand the assertion of this article that some Gaijin could help Toyota, and lead Toyota to the success levels earned by the American motor companies in recent years.

I still trust Toyota more than any existing car-maker in the world.


libertarian boomer

I would prefer the Toyota Prius with the brake problem (and follow the suggested workaround of simply pumping the pedal) over any Government Motors product. Simply put, the Toyota product with flaws still outranks any American car for quality.

The next man

While most of us have much to learn from the successes of Toyota, its recent challenges are the reminders to watch our own systems and operations. The whole world will save much if everyone will cautiously take the case story of Toyota Inc.

European Union

Rather than saying "coporate governance", I think it is a Japanese ethnical characteristic, namely "over-ambitious". Remember in the 1980s, a period when Japanese bought overseas properties zealously (and arrogantly) without thinking the risk involoved. The consequences proved to be fatal. This time is automobile but the phenomenon behind is pretty much the same. They should be more catious during the expansion period.


Sir: As your article correctly points out, U.S. industry has, for decades, tried to emulate the Toyota model for quality. Does it not seem more than coincidental that the sudden failure of the proven Toyota model occurs just following the U.S. government and UAW takeover (at the expense of legal bond holders) of G.M. and Chrysler? And, you forget that Honda was also "attacked" by the diabolical combine. Neil Woodley (Estes Park, Colorado)


One of the things this article overlooks is the effect of an engineering driven culture. While great companies like Toyota have excelled by chasing an engineering vision, they can be trapped by the myopia of the same. There is a certain arrogance that comes from people who focus on perfection and when they feel they have reached it, don't recognize input from others.

So, your company has developed a significant reputation for engineering prowess. Your brains are the best. Now a customer or outsider questions a potential flaw or weakness in your design. How likely are you to take this 'peon's' opinion seriously?

I would say that Toyota is not alone in this. The German car companies as well as many companies in many other industries and countries seem to also be afflicted by it. If they had truly open minds they would look for any input to improve their designs, including customer complaints of faulty parts. Instead of acting on properly to initial input, they are now reacting defensively.

I'm not suggesting marketing driven companies are any better, but engineers are not always the most social people and it may limit their ability to accept input from others.


Were Toyota vehicles that much better than others? Compare Echo with Accent or Fiesta. Compare with Mazda or Opel or indeed many others. While they were excellent marketers many of their products were run of the mill and mainstream and not necessarily the worse for it. Their foray into FI motor racing was well below par so at the really sharp end they could not and did not cut it. Their recent attitude shows a level of arrogance and lack of understanding that will hurt them for years to come - and it could all have been avoided. Recalls are not rare in the auto industry - its how they are handled that shows the true concern and understanding of a company. That is why a broader based, less hide bound order of governance could possibly have helped. For Toyota it is too little too late. Pride goes before a fall.


You are overly optimistic about the role of independent directors. They are generally more casual than executive / insider directors and less knowledgable about the industry. At best, they serve as decorative pieces. Effective independent directors are rather the exception and not the rule. Their complicity in the fraudulent acts of some companies makes us wonder if the term "independent director" is an oxymoron.


Gas pedal and brake must be two of the most basic (and therefore proven) components of a car but Toyota and Honda managed to screw it up. This prove that you should not try to fix it if it isn't broken.

Carlos Collaco

There are of course no perfect corporations or perfect all-weather full-proof corporate governance culture to guarantee limitless upward trajectory and endless success to every single company.

Toyota, despite current problems especially highlighted because of the company's unblemished past, will rebound by reassuring customers and dealing smartly with the media responsible, as would be expected, for a lot of the hype surrounding the snags found.

In a way the company has fallen prey to its own astounding success, as happens so often.Damage control is never an easy public relations exercise when there are any number of interests seeking more blood.
There is however nothing to suggest that Toyota is not living up to its reputation or that it did too little too late only after being pushed into a corner.

For the most part Japanese corporate governance has served the country's companies right making many American and European majors - organisations and individuals - study or seek to emulate them to a degree.

Although there is no case of foul play it is nonetheless a remarkable coincidence that Toyota's troubles began just as the company became the world's biggest carmaker in 2008 - and the Big Three - more so GM and Chrysler than Ford - are finally recovering from the dumps they got themselves into.
They could do with a little extra room in the US market.
A welcome breathing space no doubt.

In a nutshell what truly counts is quality and reliability.
If Toyota stays focused on those it will only be a matter of time before current accelerator fault becomes part of technical history.
A failing only allowed to doers.

As for corporate governance the Japanese might also learn that a loosening of stiff culturally-entrenched-ways could help move ahead in changed times.


If, as this article states, the company's mishandling of the problem is due to Japanese-style corporate governance, then why does it look so similar to Intel's Pentium coprocessor problem of 1994?



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