Toyota Admitting to Lowering Their "Acceptable Quality" Standards while Increasing Profits 12%

[JASmith]

Toyota is now openly admitting to lowering their acceptable quality standards for parts on their vehicles, due to supply shortages to keep the production lines going. Previously rejected "scratch and dent" parts will now be used on brand-new vehicles as part of corporate policy.

“We are careful about the outside of our vehicles, the parts you can easily see. But there are plenty of places that people don’t notice unless they really take a good look,” Takefumi Shiga, Toyota’s chief project leader for vehicle development, said during a press briefing.

In short, while you won't have dented door panels or scratched dashes, you may buy your 2022 Toyota with a dented muffler or scratched up control arm.

Toyota is now using 75% of parts that previously would have been considered poor enough condition to reject.

Personally, I believe they simply know that the vehicles will sell in this market one way or another, regardless of blemishes. In spite of lower production, the high profit margins per vehicle with no need for incentives to dealers or customers has healthy profits, and Toyota has increased its profit projection for the year by 12%.

Thoughts?

Source: https://www.motorbiscuit.com/toyota-scratch-dent-parts-new-cars-save-money-amid-supply-chain-issues/

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[JASmith]

Oh, and as icing on the cake, Toyota is now charging customers to use the "remote start" feature on their keyfobs, because $*#! you, that's why.

 

[MattIngram]

I’ve heard about the so-called Toyota quality, and regretted it after I bought a Tacoma TRD Off-road. Day one, I had rust weeping from the drain holes at the bottom of the door and found out about the rusty frames and decided not to chance it, even though we get little snow in the Southeastern U.S. Ford quality has always been pretty good to us. Don’t like the clear coat, too thin, or too cheap but everything else has held up well, knock on wood. It keeps us coming back despite the poor sales experience.

 

[NewBernWolf]

Toyota is now openly admitting to lowering their acceptable quality standards for parts on their vehicles, due to supply shortages to keep the production lines going. Previously rejected "scratch and dent" parts will now be used on brand-new vehicles as part of corporate policy.

In short, while you won't have dented door panels or scratched dashes, you may buy your 2022 Toyota with a dented muffler or scratched up control arm.

Toyota is now using 75% of parts that previously would have been considered poor enough condition to reject.

Personally, I believe they simply know that the vehicles will sell in this market one way or another, regardless of blemishes. In spite of lower production, the high profit margins per vehicle with no need for incentives to dealers or customers has healthy profits, and Toyota has increased its profit projection for the year by 12%.

Thoughts?

Source: https://www.motorbiscuit.com/toyota-scratch-dent-parts-new-cars-save-money-amid-supply-chain-issues/

I must be missing the point here. If I can't see the scratch on the seatbelt assembly or the topside of the muffler, why would I care? If it means more vehicles can be produced, great. The whole article just feels like clickbait to me.

 

[JASmith]

I must be missing the point here. If I can't see the scratch on the seatbelt assembly or the topside of the muffler, why would I care? If it means more vehicles can be produced, great. The whole article just feels like clickbait to me.

Traditionally, its considered unacceptable for a new car to be assembled with damaged components, even if still functional. If you have very low standards and don't mind that your new car is using parts that pre-COVID would have been rejected, while paying more for those scratch&dent parts than you would have in the past, then this doesn't affect you and is no reason to be mad.

Toyota is certainly happy with customers that are willing to pay more money for lower quality.

 

[DryHeat]

Toyota is certainly happy with customers that are willing to pay more money for lower quality.

I think @NewBernWolf's point was about exactly that... quality.

I'm not sure what exactly Toyota is doing, but to me there are some "blemishes" that might affect the quality of the vehicle and others that won't. To use your example, I don't really care very much if the muffler is slightly dented in a way that doesn't affect its performance.

As for the customers... Maybe some would prefer not getting a vehicle at all to getting one with a dent in the muffler. But my guess is that more would prefer Toyota to manufacture enough vehicles so that they can actually get one -- even if the muffler is dented.

 

[Bushpilot]

It sounds like a reasonable plan to me.

 

[abcinv]

Comparatively speaking does Toyota join the rest of the automotive world with this move or does this move put them on an island? The answer to this decides, in my mind if this is news.

 

[FloodingdowninTX]

Toyota alone makes more of a continent than an island in the automotive world, I would think.
Thanks for posting this.
I noticed their seatbelt supplier is mentioned in the article. Seems right up there with the airbag fail industry wide, from not that long ago. Also reminiscent of VW diesel-gate. Legal team probably innoculating by not covering up though.

 

[JASmith]

Comparatively speaking does Toyota join the rest of the automotive world with this move or does this move put them on an island? The answer to this decides, in my mind if this is news.

They are the first to admit it openly after the new global policy made it to the press. Personally, I've purchased scratch&dent items before, but it was disclosed that it was damaged and I paid ~60% of new price for it. Toyota won't label the vehicles individually what is damaged so you can inspect it, and they aren't discounting the vehicles that are damaged from the factory and in fact are raising prices and increasing profits.

I think its simply a case of knowing that its a seller's market, so they can reduce quality and increase prices and consumers will still ask for more anyway.

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