Toyota Motor Corporation is the latest automotive maker to be confronted with production woes; unlike several of its competitors however, it is not centred on a bailout. The massive Toyota recall which has captured the attention of consumers, as well as transportation regulators, began in 2009 and has since grown to include 270,000 vehicles in Canada and 2.3 million in the United States. Several problems have been identified in recent months, from poorly fitted floor mats which threaten to jam pedals, to defective accelerator pedals that stick and cause sudden, unintended acceleration.

Toyota has garnered attention not only from consumers, some of whom are threatening class-action lawsuits to recoup the lost resale value of their affected cars, but also from US regulators who have suggested that the company may be faced with civil penalties for dragging its feet in fixing the problems. Up to five fatalities have already been linked to the affected vehicles, including four deaths in December 2009.

In January 2010, Toyota decided to stop the production and sales of eight of its models until an effective solution to its accelerator pedal problem was found.  Now, according to a statement on its website, Toyota believes it has found the solution: a precision-cut steel reinforcement bar, installed into the assembly. The scheduled repairs on affected vehicles are reportedly to begin this week.

Amidst mounting pressure, how Toyota has handled its consumer relations has become a focal point for the media. Toyota President Akio Toyoda refrained from speaking publicly on the matter for months and issued his first statement, which included an apology, on February 5. Separately, Toyota's international divisions and at least one of its US suppliers have spoken out. In a video statement, Toyota USA President and COO, Jim Lentz, has apologized for any loss of consumer confidence. Similarly, Indiana-based CTS Corporation has spoken out in defense of its product, stating that its pedals should not be linked to the reported unintended acceleration problems. However, Mitch Walorski, director of planning and investor relations for CTS has admitted that the pedals do have a less-serious flaw. "The pedals that are the subject of the recall have to do with a slow-return phenomenon -- which is a very rare condition -- which occurs under certain environmental conditions such as heightened humidity," Walorski said.

While at least one report has dubbed the recent media frenzy "The War on Toyota" and charged that it is simply an "American nationalist assault on a foreign corporation," the reality remains that the financial impact of the recall has been estimated at upwards of US $2 billion. This setback, coupled with a 10-year low in sales in January, has made room for Toyota's competitors in the North American and global auto market. While Toyota was the leader in US sales in 2009, other automakers like Volkswagen, Honda, Mitsubishi, and even bailout recipients General Motors and Ford, are reporting gains and taking aim at Toyota's top spot in the wake of its recall troubles.

Most recently the performance of the company's hybrid car, the Prius, has been called into question for its poor braking ability on uneven road surfaces. While no official recall has been issued for the Prius, the American National Highway Transportation Safety Administration (NHTSA) has already registered 171 complaints concerning the 2010 Prius (124 explicitly regarding braking problems) - five times the recalled 2010 Toyota Corolla and far more than the recalled 2010 Camry which garnered 21 complaints, suggesting that the company's troubles are far from over.

Related:

• In the Classroom: The North American Auto Industry
• Experts: Auto Industry
• Past Feature: 2010: Consumer Optimism's Return To America?
• Past Feature: Expecting Bankruptcy: General Motors
• From the Library: Auto Industry on the Brink: Why Our Industry is in Crisis, Why Concessions Can't Save the Industry and What Should Be Done

(Image credit: Flickr User Philip Rood)