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General Motors' Recalls Remain Gargantuan in First Half of 2004
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Information Media The Toyota Way: 14 Management Principles From The World's Greatest Manufacturer December 17, 2003, from McGraw-Hill Toyota Production System: An Integrated Approach to Just-In-Time Decoding the DNA of the Toyota Production System (This is an article from the Harvard Business Review.) Consumer Reports The Wall Street Journal ![]()
Harvard Business Review Auto on Info July 2004
General Motors' Recalls Remain Gargantuan in First Half of 2004
The Detroit Free Press reports that through July 2, 2004, the five auto manufacturers with the largest U.S. market shares have issued the following number of safety recalls:
Auto Manufacturer Number of U.S. Recalls (in Millions) Toyota .37 Honda 1.26 Ford 1.69 Chrysler 3.21 General Motors 7.92 If the 2003 U.S. market shares of these auto manufacturers are used to adjust the foregoing totals for the different sales volumes of these manufacturers and the resulting adjusted figures are divided by Toyota's figure, the final values give the number of times that the number of vehicles recalled by an auto manufacturer in the first half of 2004 exceeded reasonable expectation, if the number of recalled Toyota vehicles is used to define reasonable expectation.
The following table provides these final values, rounded to the nearest whole number.
Auto Manufacturer Approximate Number of Times that the Number of Recalled Vehicles Exceeded Reasonable Expectation* Toyota 1 Honda 5 Ford 3 Chrysler 7 General Motors 8 *Toyota's number of recalled vehicles is used here to define reasonable expectation. This means that GM's rate of recalled vehicles through July 2, 2004, is 8 times reasonable expectation, if Toyota's excellence defines reasonable expectation.
For all of 2003, GM's number of recalled vehicles was 13 times reasonable expectation, by this same measure of quality. (See "General Motors' U.S. 2003 Recall Numbers: A Bottomless Pit and a GM Defense?")
Source for 2004 recalls: "Vehicle Recalls Are on the Rise," Detroit Free Press, http://www.freep.com/money/autonews/recalls8e_20040708.htm
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