Originally Posted By: d00df00d
So, the next question is whether a defect rate of 0.07% is way past the point at which they should have issued a recall. I would imagine that the alternative would have been simply replacing the defective engines under warranty, or even extending the powertrain warranty on those cars for a couple of years.
Is there anyone appropriately informed to address that? How have other companies handled similar situations?
That's how Chrysler handles its problems. There's a known issue with the rear HVAC pipes on my minivan. Chrysler has had a TSB out for fixing the issue for a while. The problem is in the design -- the rear pipes are subject to rock chips from the rear tires and corrosion...the pipes eventually pit away and you lose your refrigerant and/or coolant.
The fix? Don't actually FIX the problem...just extend the warranty until 100,000 miles. Chrysler also did this with Bendix ABS units in the '80s and A/C problems in the '90s. I think pretty much all manufacturers use this strategy to some extent. GM came up with a new game altogether...don't fix the heated washer system AT ALL. Simply tip the customer a hundred bucks for removing the feature.
Like 440magnum said above, it's a losing proposition either way, but I think Toyota has now learned that recalling the cars produces less pain in the long term. If you recall the vehicles, you have a short-term negative perception, but in the long-term, the customer is taken care of. If you don't recall the vehicles, your risk or short-term perception problems is low (did anyone here but myself know of Chrysler's HVAC pipe problem?), but your risk of long-term issues is higher, because you have this situation where it might appear like you "covered up" the problem.
Personally, I'd much rather Chrysler recall my van and fix the stupid thing. They had to do that with the 5th gen vans, because the power sliding doors were starting fires (that's a more noticeable problem). But losing a little refrigerant or coolant? Ahh, small potatoes.