Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Toyota Safety Audit Finds 'Misunderstanding' with Suppliers

October 14, 2010
3 min to read



LOS ANGELES - Toyota Motor Corp. set out to audit suppliers in North America following its biggest recall crisis and discovered testing of components wasn’t as rigorous as it expected, reported Bloomberg.


Some suppliers believed to be testing products four times a year were only doing so once a year, Dino Triantafyllos, vice president of North American product quality, said today.

Ad Loading...


“We have found areas where maybe there was a misunderstanding about some aspects of the process,” said Triantafyllos, who will attend a global quality meeting today at the carmaker’s Toyota City headquarters in Japan. “These improvements we’re making, if we’d made them two years ago, maybe some of these issues wouldn’t have happened.”


The world’s biggest carmaker is seeking to regain customer trust and market share after recalling more than 8 million vehicles globally for defects linked to unintended acceleration. In Toyota City, it added 40 engineers and created teams to scrutinize the designs of components, according to the company and an outside consultant.


“This crisis was a problem that came from the design- development stage,” said Hiroshi Osada, who leads a panel formed by the Union of Japanese Scientists and Engineers to help Toyota evaluate its efforts to boost quality.


Closer examination of components “should be able to help prevent quality defects,” said Osada, a professor of management at the Tokyo Institute of Technology and the 2009 Deming Prize winner for contributions to quality control.


Suppliers’ books

Ad Loading...


Toyota also needs to look more carefully at the quality of suppliers’ finances, management and ability to expand their operations, he said.


The individual reviews in North America typically take about a week and include checks to ensure that assembly processes, such as arc welding of metal, are consistent. Engineers are examining parts considered critical to vehicle safety, such as those involved in braking and turning.


CTS Corp., the Elkhart, Ind.-based maker of accelerator pedal components that triggered the recalls in January, was among the first companies reviewed under the new system.


“They remain a supplier,” Triantafyllos said. “We have a good relationship with them.”


No parts suppliers have been dropped so far, he said.

Ad Loading...


The initial reviews, covering a quarter of the suppliers in the U.S., Canada and Mexico, uncovered no new defects. Toyota is a third of the way through audits of suppliers of “the highest priority” parts, and once they are completed, Toyota will expand them to all 700 partsmakers there, Triantafyllos said.


Fewer projects


With its heightened focus on quality, Toyota is reducing the number of new development projects, Masami Doi, a Toyota spokesman, said without specifying the scale of the cuts.


Until recently, Toyota’s North American operations had a limited role in design development and quality issues for vehicles made in Japan and sold in North America, said Steve St. Angelo, the region’s chief quality officer.


The carmaker said last week it added three chief engineers at its technical center in Ann Arbor, Mich., to focus on design. It is opening more than 30 field offices gathering quality-related data in each region, including seven in North America.

Ad Loading...


“We now play a decisive role in quality issues in Japan- made vehicles on the road today and vehicles being designed for the future,” St. Angelo said.


More Industry

text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →
Photo of rear of electric 2026 Mercedes VLE
Industryby Hannah MitchellMarch 10, 2026

No End in Sight for Vehicle Inflation

The February average transaction price was well above a three-year average annual bump, but Cox analysts consider today’s prices to be on the normal side.

Read More →
Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →