What Should Toyota Do Now?

When I last wrote for Bloomberg BusinessWeek about Toyota, there had been two recalls that covered nearly 5 million vehicles, but it seemed to me that the actual defects were small.Don't get me wrong: People had died and others were claiming to be injured, which is as serious as it gets.In my mind, however, those specific problems—and even the subsequent discovery of brake problems in the hybrid Prius—were far from an indictment of Toyota's engineering and manufacturing processes.Journalists were wildly speculating about why Toyota quality had gone downhill, blaming too-rapid growth, cost-cutting, and weaknesses in the philosophy of the Toyota Way. "This is nuts, " I thought.

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