Toyota's Recall Budgetary Nightmare
$19.95 Buy and instantly download this paper now
This paper addresses how financial managers manage an organization's need for cash investments. It explores the sources, advantages, disadvantages, and structuring of these investments. In particular, it identifies a need for Toyota to finance a massive recall for multiple models due to premature steering problems. Toyota needs approximately $925 million in order to take care of the full cost of this recall.
From the Paper:"In the wake of 2005's recalls, which outnumbered Toyota's sales in the U.S. by about 200,000 vehicles, the company installed some stricter quality mandates internally. Another company would have moved on, but Toyota reviewed its service plans, made a public apology and hired 8,000 new quality engineers. Still others believe that with a quality gap that is closing rapidly between the "Big Three" made products and Asian automakers, Toyota somehow manages to keep its image as the essence of quality."
Sample of Sources Used:
- http://pages.stern.nyu.edu/~adamodar/pdfiles/ovhds/ch8.pdf, downloaded 16 Jun 2007
- Chapter on the Capital Structure Decision, F:\Modules\Module05\chapter6.doc, downloaded 16 Jun 2007
- How do CFOs Make Capital Structure and Budgeting Decisions, http://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P76_How_do_CFOs.pdf, downloaded 16 Jun 2007
Cite this Case Study:
Toyota's Recall Budgetary Nightmare (2007, September 17) Retrieved January 23, 2020, from https://www.academon.com/case-study/toyota-recall-budgetary-nightmare-98288/
"Toyota's Recall Budgetary Nightmare" 17 September 2007. Web. 23 January. 2020. <https://www.academon.com/case-study/toyota-recall-budgetary-nightmare-98288/>