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Is Toyota's Quality Slipping?

Surveys, Consumer Complaints Suggest It May Be

By Joe Benton
ConsumerAffairs.com

October 11, 2006

Toyota • Airbags • Engine Problems • Cruise Control • Cooling System • Safety • Toyota Motor Credit • Avalon • Echo • Prius • Tacoma • Tundra --- Reviews • 2006 Prius • 2007 Camry --- News • Toyota Raises Prices, Prius Jumps $400 • Quality Auditor Charges Toyota Cover-Up • Toyota Agrees to Oil-Sludge Settlement • Toyota Camry Named "Car of the Year" • Software Glitch Slows Some 2007 Camrys • Is Toyota's Quality Slipping? • Toyota Delays U.S. Sales of New Corolla to Improve Quality • Facing Massive Recalls, Toyota Executives Promise to Do Better • Toyota Recalls Near 800,000 for July • Japanese Probe Recall Delay at Toyota • Toyota Builds More Efficient Gasoline Engines • Toyota Cuts Entry-Level Camry Price, Boosts Luxury Model • Toyota Dons NASCAR Racing Gear • Toyota Sludge

Is Toyota's quality slipping? The company lost ground in an annual vehicle value survey. While many consumers still give the Japanese automaker high marks, some analysts are suggesting the auto giant is growing too fast in its pursuit of General Motors.

San Diego-based Strategic Vision surveyed more than 64,000 people who purchased new vehicles from October 2005 to March 2006. Consumers were surveyed after 90 days of ownership and asked if they thought they got their money’s worth.

Toyota, which had seven segment winners in 2005, took only three categories in the new study and has been moving slower than other brands when it comes to innovation, according to an auto industry analyst.

As Toyota executives struggle with their corporate image, Jennifer in Bardstown Kentucky is struggling with the foul smell pouring out of her new Toyota.

"We purchased a 2006 Toyota Avalon, we noticed when we drove it that there was a rotten egg smell to it when you accelerated or went up hills," she wrote ConsumerAffairs.com.

"This was first dismissed by the dealership as a new car smell. However about 3 weeks later we could not start the car on the first try. This does not occur all the time but does occur at least once a week. It will also cause the motor to shake violently before it starts. Every time I have taken it in to the dealership I have been told it cannot be fixed because they cannot duplicate the problem." Jennifer said.

So Jennifer and her husband took matters in their on hands in a effort to fight back, much to the dismay and anger of their Toyota dealer.

"We went in there today to get some rattling corrected in the window and had (written) on the back window about the car being a lemon. This upset them and the service manager told us to remove it or he would call the police."

During the period of the Strategic Vision value survey, Toyota car and truck buyers complained to ConsumerAffairs.com of oil leaks, poor workmanship,design, strange odors and gasoline mileage as the automaker dealt with a surge in recalls attributed to cost-cutting efforts that use the same parts on more models.

Calisandria in San Leandro told us, "I was sold a car that has an oil leak which the service department cannot find."

"I bought this car, and by the time I got home smoke was coming out from under the hood. I parked the car where there are no oil spots on the ground. The next morning I go to check to see if there are any oil spots. There are about 4 spots on the ground," she wrote.

The recent surge in recalls at Toyota peaked in July when the automaker recalled about 400,000 SUVs in the U.S., its single biggest market. The spate of recalls has led some analysts to suggest a decline may well be under way at Toyota.

"Toyota has become the recall king, something the company never had to wrestle with in the past as it won most of the JD Powers and other car quality surveys," wrote Wall Street analyst Douglas A. McIntyre. But, as the company's market share has ballooned in the U.S., Toyota had to ramp up production for North America and quality seems to have suffered," he wrote.

Other industry analysts warn that Toyota may be becoming complacent as the company attempts to overtake General Motors as the world's largest car company. They cite the Strategic Vision survey as new evidence that growth may be undermining quality at Toyota.

Perception Is Reality

A ConsumerAffairs.com reader in Portland, Oregon, agrees with that assessment of the Japanese automaker.

"Perception is reality in auto industry and with such perception I bought Camry but the reality is it is a lemon." she wrote.

From Sacramento, Donna complained about the fit and finish of her new Toyota. "My 2006 Corolla has irregular paint drips along an inch strip between 5 and 7 inches up on car doors. I asked a record be made of the paint irregularities in case this leads to any early paint deterioration."

"I had noted other cars (at the dealership) had varying degrees of the drip strip immediately below the dip in the door. I received the ridiculous explanation from the service manager that this was 'orange peel & they can't help that the customer doesn't like where the manufacturer put it.'"

Art in Florida is fed up with his 2006 Toyota Tundra truck.

"I have never paid so much for a truck and got so little. From the 20-inch tires to the seats that have been lowered so nothing can be stored under them. I hate this truck."

Finally, Deborah in Louisville is finding her new Prius to be a big-time disappointment.

"I feel there was false advertising by Toyota in stating there was 50 miles per gallon on the highway and 60 miles per hour in the city driving my Toyota Prius hybrid. They jacked up the price $8,000 from sticker stating it was a car hard to come buy and that was their price and I would actually save money on gas."

Not so, says Deborah.

"After six months of tracking, the best mileage I ever got was 43 miles per gallon. Most often my mileage is between 30-36 miles per gallon which is no better than cars I have had in the past."

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