Written on February 8th, 2010 by Editorno shouts
By Jonathan Amos
Science correspondent, BBC News, Kennedy Space Center
The US space shuttle has made its final night launch from the Kennedy Space Center in Florida.
The Endeavour orbiter soared into the Florida sky on a 13-day mission to the International Space Station (ISS).
It is delivering a connecting node and a large window module in what will be one of the last ISS assembly flights.
The US space agency (Nasa) plans just four further shuttle missions after this one – and all of them are planned to launch in daylight hours.
Monday’s blast-off occurred at 0414 local time (0914 GMT), 24 hours behind schedule. Endeavour should have left Earth on Sunday but was held on the pad because of a thick layer of cloud blanketing Florida’s Space Coast.
NODE 3 – ‘TRANQUILITY’- Key unit connects and helps manage other ISS modules
- Multiple docking ports for visiting vehicles or future modules
- 7m by 4.6m; a mass of 14 tonnes, but will be fitted out in orbit
- Sophisticated life support systems will include air cleaning unit
- Cupola to be fixed to an Earth-facing port once in orbit
- Panoramic views provide ideal control room for robotic arm
- Named after Sea of Tranquility, the Apollo 11 landing site
Endeavour’s mission is an important moment for the European Space Agency’s (Esa) contribution to the station project. Both the new modules were manufactured in Italy by Thales Alenia Space.
Node 3, also known as Tranquility, will house the station’s core life-support systems.
It will also store a treadmill the crew must use regularly to exercise their bodies and maintain bone density.
One of the risks of living in microgravity conditions is that bones tend to lose strength over time.
The Cupola is an observation tower that will be used to control robots working on the exterior of the platform.
It is constructed in the shape of a dome, with six trapezoidal side windows and a circular top window of a little under 80cm, making it the largest window ever built for space.
The Cupola is travelling into orbit attached to the end cone of Node 3 but once in orbit will be transferred to a berthing point that looks straight down to Earth.
The spectacular views from the Cupola mean it is likely to become a popular place on the station for astronauts to relax.
Esa’s project manager on Node 3 and the Cupola, Philippe Deloo, told the BBC: "I heard that on orbit the most favourite past-time of the crew when they’re off duty is to watch out the window and look at Earth.
"The psychological effect of being able to look outside, to look at the Mother Earth, is something that has long been put forward as an argument to have windows on the station."
Endeavour’s crew is commanded by George Zamka, a colonel in the US Marine Corps, and includes the British-born mission specialist Nicholas Patrick.
Dr Patrick will conduct the three spacewalks to install the two modules with colleague Bob Behnken.
Jonathan.Amos-INTERNET@bbc.co.uk
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 8th, 2010 by Editorno shouts
Japanese brewing and food groups Kirin and Suntory have called off merger negotiations.
In a statement, Kirin said it was unable to agree with Suntory on ways to ensure management independence and transparency within the merged company.
Suntory blamed the breakdown in talks on a disagreement over the merger ratio which would have determined control of the new business.
A deal would have created one of the world’s biggest food group.
"Kirin had been negotiating on the premise that the new entity would be managed as a listed company in order to ensure appropriate management independence and transparency. However, it became apparent that Suntory held a different view on this matter," Kirin said in a statement.
Suntory’s founding family owns 90% of the privately held firm and were likely to have become the new company’s largest shareholder with a one-third stake.
The announcement that the deal was off caused Kirin’s shares to fall 5%.
Kirin is the maker of Ichibanshibori beer and Afternoon Tea bottled drinks, while Suntory is known for its Premium Malt’s beer and Boss canned coffee.
Last year, Kirin and Suntory posted combined sales of beer, soft drinks and food of about $42.5bn.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 7th, 2010 by Editorno shouts
By Jonathan Amos
Science correspondent, BBC News
The US shuttle Endeavour is preparing to lift off from the Kennedy Space Center in Florida.
The pre-dawn launch on Sunday will be the last time the orbiter climbs into dark skies.
Just five shuttle flights remain before the re-useable fleet is retired at the end of the year.
The mission to the International Space Station (ISS) will deliver a connecting unit and a large bay window that will be used as a robotic control room.
The launch is timed for 0439 local time (0939 GMT). Weather forecasters say there is an 80% chance of favourable conditions.
NODE 3 – ‘TRANQUILITY’- Key unit connects and helps manage other ISS modules
- Multiple docking ports for visiting vehicles or future modules
- 7m by 4.6m; a mass of 14 tonnes, but will be fitted out in orbit
- Sophisticated life support systems will include air cleaning unit
- Cupola to be fixed to an Earth-facing port once in orbit
- Panoramic views provide ideal control room for robotic arm
- Named after Sea of Tranquility, the Apollo 11 landing site
The shuttle mission is the first since President Barack Obama announced a new vision for US space exploration.
Last Monday, he cancelled the rockets and capsule Nasa was developing to replace the shuttle, and urged the commercial sector to provide future transport needs.
Endeavour’s mission, which includes three spacewalks, will end construction on the Western part of the space station.
Once installed, the Node 3 and Cupola modules will make the platform 90% complete.
The mission is an important moment for the European Space Agency’s (Esa) contribution to the ISS project.
Both modules being ferried to orbit were constructed in Italy by Thales Alenia Space.
Their production concludes a barter arrangement made between Esa and Nasa in which Europe agreed to supply significant components for the platform in return for a free trip into space for its Columbus science laboratory and supporting equipment.
Some 7m in length and about 4.5m in width, Node 3 is built around the same design principles as Europe’s other space station contributions.
Columbus, Node 2, the ATV space freighter, and the Multi-Purpose Logistics Modules (which serve as the packing boxes for major re-supply missions carried out by the US shuttle) all have a similar cylindrical look about them.
Node 3 has several bays inside its multi-layer, meteoroid impact-hardened shell.
These bays will quickly become filled in orbit by equipment already on the station.
Chief among these will be the Environmental Control and Life Support Systems (ECLSS).
Their jobs involve scrubbing the air of carbon dioxide to maintain its oxygen concentration; and recycling waste water, including urine, so it can be drunk again and again.
Node 3 will also store a treadmill the crew will need to use regularly to exercise their bodies and maintain bone density.
The node has several berthing ports that could conceivably even allow the ISS to be expanded one day.
"Node 3 is an interconnecting module," explained Simonetta Di Pippo, Esa’s director of human spaceflight.
"It’s a door open to the future, because if we decide to develop new modules, new extensions, new capabilities, we will be able to do it because we are now launching Node 3."
The Cupola is a dome-shaped module with seven windows. At 80cm in diameter, its top window will be the biggest ever flown in space.
The module will act as a control room to direct robotic operations on the exterior of the platform, and provide a vantage point for the astronauts to view their home planet.
UK-born astronaut Nicholas Patrick will be one of the spacewalkers who will help install the modules.
"I will be undoing the bolts that hold the Cupola shutters down," he said.
"Once those 21 bolts are released, one of my colleagues on the inside can open up the window shutters and take a first look out through the Cupola windows, which will be, I think, just a fantastic thing on the space station," he told BBC News.
This will be the 130th space shuttle flight, the 24th flight for shuttle Endeavour and the 32nd flight to station.
Nasa hopes to run out the final four shuttle flights before the end of the year, although President Obama has promised the agency funding to support the schedule should it slip into 2011.
Jonathan.Amos-INTERNET@bbc.co.uk
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 7th, 2010 by Editorno shouts
Toyota is to recall the latest model of its flagship Prius cars because of a possible fault with the brakes, reports from Japan say.
The firm did not comment on the reports, but said it would be announcing soon what action it would take over problems with the Prius.
Toyota has already recalled about eight-million vehicles with faulty accelerator pedals.
Company president Akio Toyoda has publicly apologised for the problems.
TOYOTA RECALLS: STORY SO FAR- September 2007, US: 55,000 Camry and Lexus cars in floormat recall
- October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem
- November 2009, US: floormat recall increased to 4.2m vehicles
- January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (of those, 2.1m already involved in floormat recall)
- January 2010, US: 1.1m Toyotas in floormat recall
- February 2010, Europe: 1.8m Toyota’s in pedal recall
- February 2010, Japan, US: 200 reports of brake faults in new Prius (none recalled)
Q&A: Toyota recallsRecalls: US readers’ commentsToyota UK repairs start next weekReputation could suffer for yearsThe brake problem is thought to affect about 270,000 Priuses that were sold in the US and Japan starting last May. Toyota blames a software glitch and says it has already fixed vehicles sold this year.
According to Japan’s largest newspaper, Yomiuri, Toyota has already notified car dealers in Japan that it plans to recall its latest Prius model. It will make a formal announcement after reporting to the government, according to the reports.
It is unclear whether a similar total recall is planned for the US, but dealers there have reportedly been told that Toyota plans to repair the brakes on thousands of Prius vehicles.
The US Transportation Department said last week it was investigating braking problems in the 2010 Toyota Prius after Toyota admitted brake problems with the model.
The US National Highway Traffic Safety Administration has received 124 reports from drivers about the braking issue, including four of crashes.
There have been no reports of any such accidents in the UK.
The US investigation will look into allegations of momentary loss of braking power while travelling over uneven road surfaces. Toyota said the glitch was not legally a safety hazard, and that it had received no reports of any accidents related to it.
Toyota estimates its losses will reach $2bn (£1.23bn) in costs and lost sales from its worldwide recall of vehicles that might have faulty accelerator pedals, but a recall of Prius models would send this figure even higher.
But these losses could escalate if the trust and reputation the company built up over a period of decades is demolished, observers say.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 6th, 2010 by Editorno shouts
By Alastair Leithead
BBC News, Toyota City
There is a deep shine of pride and dedication in the black paintwork on the replica 1936 Toyota which sits boldly on its plinth at the company’s Commemorative Hall in Toyota City.
Inspired by the automobile industry in the US, Sakichi Toyoda pushed the family machine-powered loom business in a different direction and created what is now the world’s biggest car maker.
But the last few weeks have dulled the spotless image Toyota built up over the decades as a bastion of quality, attention to detail, efficiency and trustworthiness.
It has always been more than just a brand name or just another car maker.
Toyota has embodied Japan’s emergence from the ruins of World War II into one of the world’s great powers.
The company’s values parallel the nation’s ethos, and Toyota is a national icon.
So there was more behind the deep bow of apology by Akio Toyoda, the grandson and third generation company president, than just "sorry".
Hitting home
Unfortunately for most here in Japan, and in 60 or more countries where the recall has had an impact, what he had to say was just too little and too late.
TOYOTA RECALLS: STORY SO FAR- 2007, US: 55,000 Camry and Lexus cars in floormat recall
- 2009, US: floormat recall increased to 4.2m vehicles
- 2010, US: 2.3m cars recalled due to accelerator pedal problems
- 2010, US: 1.1m Toyotas in floormat recall
- 2010, Europe: 1.8m Toyotas in pedal recall
- 2010, Japan, US: 200 brake fault reports in new Prius. None recalled
Q&A: Toyota recalls
First, and perhaps most damaging, came the accelerator pedal problem which led to the recall of eight million Toyotas worldwide.
It is already expected to cost the company $2bn (£1.3bn), but the second scare over the world’s bestselling hybrid car, the Prius, has had more of an impact at home.
The harsh headlines, cutting criticisms and investigations into complaints and accidents has hit Toyota’s image hard elsewhere, but the problem cars were exported and the worldwide media furore had escaped Japan until now.
The slipping brakes on the Prius – which could still yet see hundreds of thousands more vehicles recalled – has now hit home as so many were bought in Japan under a government scheme to subsidise environmentally-friendly cars.
Despite the tarnishing of the Toyota, Friday night’s hastily-arranged press conference in Nagoya, an hour-and-a-half’s bullet train ride from Tokyo on the other side of Mt Fuji, was the first time the company president had appeared to state his case.
Test drive
Japanese chief executives don’t always come across as well as you would expect for such global players, and there were more questions than answers from a media pack hungry for snappy sound-bites.
"There will be some damage, but Toyota is strong and could even become stronger from the experience of this"
Worker, Toyota City
"The customer comes first," Akio Toyoda kept insisting, "and I must apologise to all our customers," but he left the details of what they were doing to his vice-president.
There was still no clarity on the Prius brakes – simply an assurance it was safe as long as you pushed the pedal a bit harder, and a promise that if the company felt a recall was necessary, the customers would be the first to know.
However, people here are still confused over why the newer models are having their software upgraded if everything is fine.
For a hybrid car which effortlessly switches from engine power to battery power as required, it’s a smooth drive.
Test driving one of the questioned batch, I found the brakes to be more than responsive, but the man taking me through its pros and cons did admit there had been problems in the cold.
Perhaps Japanese consumers are a little less militant than their American counterparts when it comes to taking up complaints or launching legal action.
Some put it down to Japan-bashing from the political voices of the US automobile industry, but cars which won’t stop accelerating and brakes which are slow in slowing you down do not make for confident drivers.
‘Worry-free’
There is still confidence in Toyota City, which hosts the company headquarters and provides a living to families of a quarter of the population.
"There will be some damage, but Toyota is strong and could even become stronger from the experience of this," said one man wrapped up from the cold and shuffling past one of the many factories in the city.
Among the many museums devoted to the family name, and product, is a future showroom where two-legged robots welcome you by playing the trumpet in reception three times a day.
Amid the high-tech visual displays is the emphasis on safety – a core of the company’s reputation for so long.
"Toyota’s efforts are aimed at realising safe and worry-free driving," the voice says.
In that regard, it has been hit hard around the world and will feel it in the company coffers for months or maybe even years to come.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 5th, 2010 by Editorno shouts
Toyota’s reputation could be tarnished for years
Toyota is considering recalling some Prius models in Japan and the US following concerns about the hybrid’s brakes, the carmaker has confirmed.
The US Transportation Department is investigating braking problems in the 2010 Toyota Prius after Toyota admitted brake problems with the model.
The carmaker had said it had fixed the problem in January.
Toyota has already recalled more than eight million cars worldwide over concerns about accelerator pedals.
"There are reasons to believe that a recall could be put in place [in the US and Japan], but it’s still early hours and early days," said Toyota UK’s managing director Miguel Fonseca.
"There is still an investigation going on with the relevant authorities."
Further investigation
The US National Highway Traffic Safety Administration has received 124 reports from drivers about the braking issue, including four of crashes.
TOYOTA RECALLS: STORY SO FAR- September 2007, US: 55,000 Camry and Lexus cars in floormat recall
- October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem
- November 2009, US: floormat recall increased to 4.2m vehicles
- January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (Of those, 2.1m already involved in floormat recall)
- January 2010, US: 1.1m Toyotas in floormat recall
- February 2010, Europe: 1.8m Toyota’s in pedal recall
- February 2010, Japan, US: 200 reports of brake faults in new Prius. None recalled
Q&A: Toyota recallsToyota UK repairs start next weekThere have been no reports of any such accidents in the UK.
The investigation will look into allegations of momentary loss of braking power while travelling over uneven road surfaces.
As depressing the brakes further activated normal braking, Toyota said the glitch was not legally a safety hazard and said it had received no reports of any accidents related to it.
‘Very disappointed’
Mr Fonseca told the BBC that the braking problem was "not a defect, but a characteristic of the way the ABS system is tuned", before adding that there had been "no issues with this in the UK".
However, he did say that "we are very disappointed to have let customers down and accept that we could have handled [the problem] better."
On Thursday, the carmaker reported a net income of 153 billion yen ($1.68bn; £1.06bn) for the final three months of 2009, compared with a loss of 164 billion yen a year earlier.
The firm also said it still expected higher sales and to make a profit this year, despite the heavy blow to the company’s reputation.
Toyota estimates its losses will reach $2bn (£1.23bn) in costs and lost sales from its worldwide recall of vehicles that might have faulty accelerator pedals, but a recall of Prius models would send this figure even higher.
"The losses could escalate if it turns out that the trust and reputation the company built up over a period of decades has been demolished almost overnight," said BBC business reporter Jorn Madslien.
Have you experienced similar problems with the accelerator of your Toyota You can get in touch with us using the form below:
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 4th, 2010 by Editorno shouts
Toyota, the world’s biggest carmaker, has reported a huge swing back into profit in the last quarter of 2009.
Its net income was 153 billion yen ($1.68bn; £1.06bn) after a loss of 164 billion yen a year earlier.
Toyota confirmed its estimate that it would lose about $2bn (£1.23bn) in costs and lost sales from its worldwide recall of potentially faulty vehicles.
Toyota is recalling up to 1.8 million cars across Europe, including more than 180,000 cars in Britain.
Toyota in the UK says it will be nearly a week before it can start repairs on cars with defective accelerator pedals.
However, the firm said it still expected higher sales.
Its forecast last November was for sales of 7.3 million – and despite the heavy blow to the company’s reputation it now thinks it will sell 7.18 million in the next financial year.
Back in the black
It also says it will make a profit this year. It had been prepared for a loss – and that was before the crisis.
It added it had not yet worked out the cost of the latest reports of brake problems with the new Prius.
Shares in Toyota have hit their lowest level for 10 months on the Tokyo Stock Exchange with continuing concern about the safety of the company’s vehicles.
The world’s biggest carmaker has recalled more than eight million vehicles globally because of problems with defective accelerator pedals on seven models and a separate problem in the US – also acceleration-related – to do with pedals sticking in floor mats.
Alarm
At a Congressional hearing on Wednesday, US Transportation Secretary Ray LaHood alarmed both investors and consumers with the advice, which he later retracted, that owners of a recalled Toyota should "stop driving it".
He later said: "What I said in there was obviously a misstatement. What I meant to say… was if you own one of these cars or if you’re in doubt, take it to the dealer and they’re going to fix it."
He also repeated that they were studying the possibility of civil penalties against Toyota for safety violations, which could mean fines of millions of dollars.
Both he and his Japanese counterpart have ordered the company to investigate complaints of brake problems with the Prius in the US and Japan and have not ruled out a recall.
A day after falling 5.7%, Toyota shares fell a further 3.5% on the Tokyo Stock Exchange on Thursday morning and hit their lowest level for 10 months.
UK RECALLED MODELS- February 2005 – August 2009 AYGO
- November 2008 – November 2009 iQ
- November 2005 – September 2009 Yaris
- October 2006 – 5 January 2010 Auris
- October 2006 – December 2009 Corolla
- February 2009 – 5 Jan 2010 Verso
- November 2008 – December 2009 Avensis
Q&A: Toyota recallUS-listed Toyota shares ended Wednesday trading down 6% or 4.69 cents to 73.49 cents, continuing the falls of recent days.
The shares have now lost about 22% of their value since 21 January, when the company announced the recall of some 2.3 million vehicles in the US amid concerns that their accelerator pedals could become stuck. It is also recalling up to 1.8 million cars across Europe, including 180,865 in the UK.
The seven models being recalled in Europe are the Aygo, iQ, Yaris, Auris, Corolla, Verso, and Avensis, and cover manufacturing dates going back to February 2005. In the US, they are the RAV4, Corollas, Matrix, Avalons, Camrys, Highlander, Tundra, and Sequoia, and cover dates going back to October 2005.
The parts needed to repair the cars will not arrive in the UK until next week, with the first repairs scheduled for Wednesday. Toyota says the process, which should only be carried out by its dealers, takes around half an hour.
The carmaker said it was not aware of any accidents resulting from the issue and that only 26 incidents involving accelerator pedals had been reported in Europe.
Have you experienced similar problems with the accelerator of your Toyota You can get in touch with us using the form below:
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 4th, 2010 by Editorno shouts
![Sign outside [block]0[/block] offices in London](http://newsimg.bbc.co.uk/media/images/46916000/jpg/_46916332_emi_ap_226.jpg)
Record company EMI has reported an annual pre-tax loss of £1.75bn in the year to 31 March 2009 and said it needed more money to stay afloat.
The results for EMI, which has deals with Robbie Williams and Coldplay, include more than £1bn in write-offs.
The firm has been hit by illegal downloading and the move away from album sales to single digital tracks.
EMI is at the centre of a legal dispute between private equity owner Terra Firma and US bank Citigroup.
Terra Firma is seeking billions in damages linked to its £4bn purchase of EMI in 2007.
It accuses the bank of inflating the price of the firm by not revealing that the only other bidder, Cerberus Capital Management, had withdrawn.
"Every single cent of Terra Firma’s equity has been wiped out."
Robert Peston
BBC Business Editor
Read Robert’s blogEMI and its Beatles relianceCitigroup is contesting the claim, saying it will defend its role in the proceedings "vigorously".
Shortfall
EMI is now the smallest of the four major record labels, and has launched a turn-around plan to try to cut costs and boosting internet sales to compete against the likes of Universal and Warner.
It has also cut about 2,000 jobs but lost some of its acts, including Radiohead, in the row that followed.
BBC business editor Robert Peston said the results showed "one of the biggest ever losses on a private equity investment".
EMI was sold at the height of the private equity buyout bubble in 2007. The business has been battered by its high debt levels and a weak performance as record companies struggle to make cash .
The group warned of a "likely significant" shortfall when it had to meet covenants on its £2.6bn debt at the end of March 2010.
Excluding its huge one-off write-offs, EMI saw operating profits of £143m, compared with £101m the previous year.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 4th, 2010 by Editorno shouts
Toyota vehicles made and sold in South Africa are to be recalled after similar moves in the US, Europe and Asia, a company spokesman has told the BBC.
Leo Kok said none of the problems with brakes or accelerators seen elsewhere have yet been reported in South Africa.
He said the recall was purely preventative and customers could continue driving their vehicles until they were asked to take them in.
Some 23% of vehicles sold in South Africa are Toyotas, he said.
TOYOTA RECALLS: STORY SO FAR- September 2007, US: 55,000 Camry and Lexus cars in floormat recall
- October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem
- November 2009, US: floormat recall increased to 4.2m vehicles
- January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (Of those, 2.1m already involved in floormat recall)
- January 2010, US: 1.1m Toyotas in floormat recall
- February 2010, Europe: 1.8m Toyota’s in pedal recall
- February 2010, Japan, US: 200 reports of brake faults in new Prius. None recalled
Q&A: Toyota recallsToyota’s reputation could be tarnished for yearsEarlier on Thursday, the US transportation department opened an investigation into brake problems in the 2010 Toyota Prius.
This latest alarm for the beleaguered carmaker – one of the world’s biggest – follows worldwide recalls of almost eight million cars because of floor-mat and pedal problems.
"We will be included in the recall," Mr Kok told the BBC’s Focus on Africa programme.
He said all Toyota customers in the country would be contacted and could then take their vehicles in to have the necessary adjustments made.
The seven models being recalled in Europe are the Aygo, iQ, Yaris, Auris, Corolla, Verso, and Avensis, and cover manufacturing dates going back to February 2005.
In the US, they are the RAV4, Corollas, Matrix, Avalons, Camrys, Highlander, Tundra, and Sequoia, and cover dates going back to October 2005.
Have you experienced similar problems with the accelerator of your Toyota You can get in touch with us using the form below:
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Written on February 4th, 2010 by Editorno shouts
Analysis
By Jorn Madslien
Business reporter, BBC News
Toyota is on the verge of "capitulation to irrelevance or death".
Not my words, but those of Toyota president Akio Toyoda.
He said it, not in response to the continuing recalls of more than eight million cars worldwide, but in a speech at the Japan National Press Club on 2 October 2009.
At the time, long before the latest safety scares, a slew of quality and safety problems had sent Toyota’s reputation sliding.
The decline was there for all to see. It was written into the company’s sales and earnings reports, which revealed months of steady decline.
Big and distant
"Toyota has become too big and distant from its customers"
Toyota president Akio Toyoda
Selling more cars than General Motors (GM) and thus becoming the world’s biggest carmaker had never formally been a target for the Japanese carmaker.
But volume growth had: in 2002, when the company’s global market share stood at little more than 10%, then Toyota president Fujio Cho outlined a plan to reach 15% soon after 2010.
A year ago, when GM stumbled towards bankruptcy, Toyota’s ascent into the top slot was inevitable. In 2008, Toyota sold 8.9 million, while GM sold 8.3 million vehicles.
But the rot had already set in; Toyota had just issued its first-ever profit warning for the year as a whole. Then, in spring 2009, it reported a 436.9bn yen ($4.4bn; £2.9bn at the time) operating loss for the fiscal year to March.
The company was in crisis mode.
In June, Mr Toyoda stepped in at the helm of the huge carmaker, four months after former Toyota president Katsuaki Watanabe was ousted in a humiliating ritual in front of some 400 Toyota executives.
Akio Toyoda was clear in his criticism: the executives running the company that his grandfather Sakichi Toyoda founded had run it into the ditch.
"Toyota has become too big and distant from its customers," he said in his autumn speech, castigating the firm’s executives for their "undisciplined pursuit of more" and for their arrogance, which he referred to as "hubris born of success".
Quick fix
"The best thing to do now is not to hold Toyota shares"
Kazutaka Oshima, chief executive, Rakuten Investment Management
Within weeks of taking charge, Mr Toyoda was informed of an accident in which an off-duty traffic officer and three of his relatives had died. The accelerator getting caught in the floor mat of the brand-new Lexus was deemed a possible cause.
"Four precious lives have been lost," Mr Toyoda said at the time. "I offer my deepest condolences."
A recall of 3.8 million Toyotas followed, involving a so-called "semi-permanent floormat installation process" – or rip-zipping the driver’s side mat to the seat rails.
Reputation risk
The current pedal problem, which has led to the latest recall, is more complex and the fix is proving considerably more costly.
"I think it’s going to take Toyota years to get out of this one"
John Huntley, crisis communication consultant
Toyota estimates its losses will reach $2bn (£1.23bn) in costs and lost sales from its worldwide recall of vehicles that might have faulty gas pedals, although this figure does not include other potential problems – for instance, reported issues with the brakes on the carmaker’s Prius model.
But the losses could escalate if it turns out that the trust and reputation the company built up over a period of decades has been demolished almost overnight.
Crisis communication consultant John Huntley, managing director of John Huntley Training, says such concerns are well founded.
"Something has gone wrong and it seems people may have died," he points out. "I think it’s going to take Toyota years to get out of this one."
To Mr Huntley, there is no doubt: Toyota had to face the music, as failure to do so could have been even more disastrous. And for what they are worth, Toyota’s apologies have been a useful first step in terms of alleviating the situation.
But acknowledging that something has gone wrong is not in itself enough, Mr Huntley points out.
"People want to know what they’re going to do about it, and at this stage it’s a complete dog’s breakfast. There’s just too much conflicting advice out there," he says.
Mr Huntley is particularly critical about advice that says only customers who "experience any issues with their accelerator pedal" should contact their dealership, pointing out that any advice that relies on customers’ own judgement about whether or not their actions are safe is flawed.
Ong Hock Chuan, from crisis management firm Maverick in Jakarta, agrees.
"In moments of a business crisis, people want to see [the head of] a company take full responsibility, be empathic to the victims and their families and be in control by outlining the problem and how they intend to solve it," he says.
"Toyota seems to have failed on all counts. Its admission of the problem has been half-hearted and almost reluctant, it has failed to apologise unequivocally to victims and their families, and it’s failed to articulate and communicate what it intends to do to regain control of the situation."
Investors flee
Spooked investors have been keeping a close eye on the situation. Many are already taking flight, as can be seen by sharp falls in the share price.
"There are simply too many uncertainties surrounding Toyota at the moment," says Kazutaka Oshima, chief executive of Rakuten Investment Management in Tokyo.
Benedicte Mougeot, fund manager at HSBC GIF Japanese Equity Fund in Hong Kong, is also concerned. "Taking into account the increased risk and reduced profitability, we will review our investment."
Risk-averse investors fear car buyers will also shy away from risk too. "We are not certain about how Toyota’s damaged reputation will affect its earnings in the future," says Mr Oshima.
"The best thing to do now is not to hold Toyota shares."
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