During its earnings announcement earlier this month, it looked like Toyota (NYSE: TM) was recovering nicely from its two-year recall blitz – where a total of 10 million vehicles were taken off the road between 2009 and 2011.
The company raised its full-year net profit forecast to $9.7 billion, thanks in large part to solid vehicle sales.
That’s pretty incredible, considering that Toyota had just recalled another 7.4 million cars with faulty window switches in October.
The company might have spoken too soon, however. Because it just issued yet another recall – this time for 2.8 million cars (specifically the second-generation Prius and some Corollas).
According to Clarence Ditlow, Executive Director for The Center for Auto Safety, “The fundamental issue is this: In the early 2000s Toyota concentrated on becoming number one in world sales of vehicles. What they did is they shortchanged quality and engineering in that process. So, they were successful in getting to number one, but now they have a backlog of vehicles with poorer quality. And so, while they focus on restoring quality to the new vehicles, they have all these older vehicles with defects that keep getting recalled and recalled.”