Toyota: Moving Forward Comes Back to Bite

By now, you've seen and heard about the massive safety recalls that Toyota is undergoing. You know that Toyota has had to recall more than 8 million vehicles worldwide for various safety issues, ranging from floormats to accelerator pedals to brakes and, soon, steering systems. At least 34 people (UPDATE: 56 as of 2/28) have died from these issues, hundreds have been injured, more than a thousand have been involved in accidents, and hundreds of thousands have been inconvenienced and are beginning to see their resale values drop. No fewer than 46 class-action lawsuits have been filed against the automaker, with claims ranging from vehicle loss-of-use and lost value to wrongful death.

The National Highway Traffic Safety Administration forced Toyota to stop production and sale of the 8 affected models because, 5 days after Toyota announced the problem with no fix ready, Toyota was still building and shipping cars with faulty parts. And from the day the production halt was announced to the ads Toyota is currently airing, the company has been taking credit for that decision when they were legally forced into it.

Not one day of this entire recall/safety debacle has provided the public with facts that have added up. Few people, if anyone at all, seem to be in on what the issue is, including Toyota itself. Toyota has pointed fingers at CTS, the supplier that builds the accelerator pedal assemblies, saying that CTS was building them with flaws. CTS has pointed its fingers right back, saying that they've built the pedals to Toyota's exact specifications. ABC News released a story showing a college professor replicating unintended acceleration through an electronic fault that failed to show up on mechanical diagnostic equipment. Toyota has questioned the professor's methods.

Who Put the "Crisis" In "Chrysler"? (Part 1 of 2)

The Chrysler Corporation is an 84 year-old with Bipolar Disorder. There is no better way to describe the company.

Their history reads like a giant roller-coaster ride of manically high highs and depressively low lows. In the last 30 years alone, Chrysler has been at death's door 3 separate times (1979-81, 1990-92, 2007-present), and taken US Government bailout money twice (in 1980 and 2008/9).

They were on the ropes in the early 1960s because they downsized their cars when everyone wanted them bigger and more powerful; the early '50s because they'd restyled the entire line way too conservatively for the first "Age of American Excess"; the mid-'30s because they'd practically bet the farm on odd-looking aerodynamic "Airflow" cars that were too far ahead of their time for people's tastes; and were founded by Walter P. Chrysler in the midst of the collapse of Maxwell-Chalmers in the mid-1920s.

But their highs have been incredible. After being saddled for half a decade with stodgy designs, Chrysler debuted new "Forward Look" cars in 1955 and '57 that sent GM and Ford scrambling to compete. Chrysler's longer, lower, wider designs, advanced engineering, and pioneering features pushed Plymouth, Dodge, DeSoto, Chrysler, and Imperial sales through the long, sweeping roof and set trends the industry would follow for years.

The late '60s and early '70s were kind to Chrysler, as well. Their big and midsize cars got slick "fuselage" styling. Their muscle cars were hot and there were plenty of them (Duster 340, Barracuda, GTX, Road Runner, Superbird, Challenger, Charger, Charger Daytona, Coronet Super Bee, and Sport Fury GT). Their all-new trucks and vans were winning people over. And their compact Darts and Valiants were selling out to the bare walls.

With Lee Iaccoca at the helm in the '80s, Chrysler climbed out of the grave by introducing the popular, economical K-Cars, the reintroding the convertible, and inventing the minivan. Chrysler came back quickly enough in the '80s to repay their government bailout loans ahead of schedule. They were doing so well, in fact, they went on to purchase American Motors, the fourth volume American vehicle manufacturer, in 1987, and picked up AMC's hugely profitable Jeep division for $1.1 billion in the process.

And as recently as 1998, the smallest of the Detroit Three was the most profitable among them. Chrysler had been totally turned around from its early '90s slump by offering swoopy "cab-forward" sedans (e.g., Dodge Intrepid, Chrysler Cirrus, Plymouth Neon), "rule-changing" Ram pickups, minivans for which they'd "thought of everything", and wild concept cars like the Viper and Prowler that were brought to production largely unchanged from their show car forebears.

So, what happened this time? Why is Chrysler once again swirling the drain, taking bailout money, and producing lousy, unimaginative products? Hadn't they learned their many lessons from the past?They probably had, actually.