Friday Fact – Quality Comes First

June 21, 2019by Faber Infinite0

Did you know, one of the world’s biggest car manufacturer recalled 45,000 cars in India?

In the year 2014, the world’s biggest manufacturer of cars and who is also well known for its quality had to recall one of the world famous cars due to quality issues. The organization had to recall 44,989 cars which were manufactured in between 2005 – 2008 from across India to rectify and change the faulty cable of the steering wheel.

This move was the part of recalling 6.39 million cars from across the globe in 2014. As per the organization, the campaign was done due to the error in the spiral cable mounted on the steering wheel. The fault had led to the continuous enlightening of the airbag warning sign on the instrument cluster. In addition to which the driver’s airbag could have also got deactivated.
At that time the organization said that it was working on obtaining the necessary replacement parts. Once the replacement parts were available, the car owners will be contacted by the authorized dealers of the organization. The repair was free of cost and was expected to take one hour per vehicle to repair.

The campaign had to be conducted at the time when the organization was facing labor issues at two of its plants. Around 4,200 workers had gone on a hunger strike demanding to increase their wages. Due to this issue, the reputation of the organization for quality and safety had detained. The reason behind this is, the company was fighting to protect its brand after the recalls of the vehicles.

Apart from this, the first biggest single day recall happened in the year 2012 where the organization recalled 7.43 million models of its other well-renowned cars to fix faulty power window switches.

This was the second-biggest recall till the day where they recalled 6.39 million cars of 1 model out of 25 other models which had other quality issues as well, faulty cable errors on steering wheel, seat rails, engine starters, and windshield wiper motors.
Being the second biggest recall, the company was paying around $1.2 billion to settle against US crimes for being blamed for the dozens of deaths. Also, the share prices of the company dropped down by 3.07%.

A total number of 1.08 million cars were recalled from Japan, 2.3 million cars from North America, around 770,000 cars in Europe, and 62,000 cars in China in the year 2014.

Hence, as you can see, the world’s renowned car manufacturer who is known for its quality and safety had to face a downturn due to issues in quality and safety. No matter how good you are in terms of quality or safety, you need to be constantly careful about quality and safety. Or else, you too will face a hard downturn like this organization did. So, have you started paying attention to the quality of your offerings?

by Faber Infinite

Faber Infinite is an International Business Management Consulting Organization offering consulting solutions and services for Increase Profitability in Business.

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