Toyota Motor Corp. is a global company that symbolizes Japan's manufacturing might.
But now, consumer confidence in the safety of Toyota cars, the very foundation of the company's international competitiveness, is being badly shaken.
Problems with accelerator pedals in popular models in North American and European markets have forced the company to recall millions of vehicles worldwide and suspend production and sales of several models in the United States.
These developments have begun to make customers feel less secure about the quality and safety of Toyota's products in general.
The recall saga started with a fatal accident involving a Lexus sedan in California in August last year. The driver lost control and crashed into a ravine after the accelerator pedal became jammed with the floor mat and didn't spring back when the driver's foot was taken off the pedal.
Toyota insisted that there was no fault in the car itself.
But after much public criticism, Toyota decided in November to recall 4.26 million vehicles. The company's belated response seems to indicate its sensitivity to safety issues has weakened.
Next, it was revealed a component in the pedal could wear out and prevent the pedal from returning to the idle position. Toyota recalled 2.3 million cars in the United States over the problem and took similar actions in Europe and China, where the cars using the same pedal component are sold.
In a drastic move, the auto giant decided to temporarily stop building and selling the eight affected models manufactured at five North American plants.
Toyota has also decided to recall an additional 1.09 million vehicles over a design flaw that could cause the gas pedal to be jammed with the floor mat.
This rapid succession of recalls has tarnished the carmaker's image, which was cultivated through years of steady effort.
The economic crisis that has decimated Toyota's profits and slammed the brakes on the firm's growth is an external factor.
But the blame for Toyota's safety woes should fall on the company's management.
One factor behind the current predicament is Toyota's rapid globalization, which has apparently seriously affected product quality.
The gas pedal component in question is supplied by a U.S. maker. It appears Toyota failed to ensure the supplier's products were free from design flaws and quality problems.
As the company has moved toward sharing more parts between a wider range of models, the number of cars affected by each recall has grown sharply.
The way Toyota dealt with the recall crisis shows troubling signs of the overconfidence and complacency that have infected the manufacturer as it passed GM to become the world's No. 1 automaker.
While the problem has become global, Toyota has not offered an adequate explanation to customers in Japan and other countries that have not been affected so far.
Recent consumer surveys in the United States have shown Hyundai Motor Co. of South Korea outperforming Japanese makers in terms of product quality.
Japanese carmakers still hold the lead in development and commercialization of next-generation cars like hybrid and electric vehicles. With international competition getting fiercer by the day, however, there is no room for complacency.
As next-generation cars become more popular, there will be a major shakeout in the world car industry in which manufacturers with unsatisfactory safety and quality records face the danger of being weeded out.
In the 21st century, the world will likely go through turbulent periods as radical changes in market structure and transformative technological innovations take place simultaneously.
Under such circumstances, sensitivity to product safety and quality will be a vital factor for the competitiveness of all Japanese industries. This is a challenge not limited to the auto industry. Toyota's current plight offers a cautionary tale that Japanese companies can only ignore at their peril.
--The Asahi Shimbun, Jan. 30