Safety Panel Advises Toyota To Decentralize Power

Law360, New York (May 23, 2011, 4:12 PM EDT) -- Toyota Motor Corp.’s Japan-centered management structure led to its North America safety issues, an independent advisory panel reported Monday, advising the automobile giant to tap one chief executive to be responsible for North American regional operations.

Toyota allowed its Japanese headquarters to have too much control over recalls, marketing and vehicle design, and it made a mistake by having silos around the world report separately to Japan, the North American Quality Advisory Panel found.

“In the modern world, major automotive manufacturers need to be global to...
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