Wednesday, March 3, 2010

Total Recall, the Secret to Higher Profits!

So I have been discussing this with my wife the last few trips home. Luckily we have about 45min each way to chit chat and argue, which leads to time listening to the radio.

You all have heard that Toyota did a recall for gas pedals, a issue that I have known about since my 1982 toyota 4x4 (love that truck). But all of a sudden it's a big deal? its a conspiracy. Think about it, not proven, but think about it. 100 people complain about a issue, in their cars/trucks/SUV's and then Toyota does a massive recall. Potential to bring the big corporation down to it's knees. That was the prayers of GM, Dodge, and Ford. It is easy for a corporation to purchase 100 vehicles and then complain about a issue causing the recalls, thus making North Americans wary about buying toyota and choosing honda. Dammit that back fired in their face.

Remember that whole cash for clunkers, well more 90% of the fords were explorer models, and were traded in for Honda and Toyota Hybrids. MOTIVE!!

So here we are toyota did the recall of millions of cars, and a scared North America does not want toyota no more. WRONG! Toyota recently released that since the recall and their due diligence to fix the issue and very clever press releases, have now gained a 25% Profit margin. 25%!! is huge when you already have 50% or more of the market!

Now the bad guys here, are GM, Ford, and Dodge, they started it pointing fingers to try and bring in profit for themselves. But it backfired, it did not work, Toyota got more business. Now what are they to do?? We'll in their scarred little antic way of a child of age 5, they see all the other kids playing nice and want their toys, so now they have released a recall for Pontiac, Ford, GM and Dodge vehicles that they have known about since 2005 or sooner, but neglected to give 2 shits about unless someone forced them to.

What does this mean for us? Don't promote the destruction of a well established company just because the radio says so. I love Toyota for good reason, I have personal experience with the reliability of Toyota's 4x4's. I have personal experience with the reliability of Honda cars. Ford, not so much, gm, seen them break, dodge, well I love the caravan, great rental. "rental" anyway another topic.

When this all started I had to ask myself who started it. Like a episode of NCIS the trail leads back to those who have the most to loose. And that is who I will stay away from.


Take a look at the Top 5 Recalls of all Time. Toyota's not involved.

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