Abstract:

New year 2010 rang in for Toyota with the good news that it took over the leading seller spot from GM but the unfortunate reality of having to deal with sticking accelerator pedals which ended with a recall of about three times what it sold in North America last year. With a $17.4 Billion bailout at the end of 2008 for General Motors and Chrysler, the Government had given the two giants three months to get their house in order. President Obama also wanted higher fuel efficiency, reduced carbon emissions and to keep jobs intact in the automotive industry. This is an industry which does not simply subsist on selling automobiles.  It also includes designing, developing, manufacturing, and marketing of the car.  Some analysts have argued lately that financing the car should become a part of the industry since many auto companies have been fully involved with this function as their own lines of credit are regularly extended to the customers.