Japan's reaction to TOYOTA recalls

Caught in its mushrooming recall debacle, Toyota now knows how lonely it can be at the top. Many say the development underscores the difficulty of maintaining top-notch quality amidst hasty expansion. The blowback has spawned fears amongst many in Japan that Toyota's woes will spill over into the whole Japanese economy.

Toyota President Akio Toyoda has not commented publicly on the faulty accelerators and floor mats since expressing regret for the deaths of four people in a crash linked to the problems in August last year.

But the level of attention on Toyota's woes -- from consumer groups, media and the government -- is also the manifestation of another major fear that Toyota has harbored: that public opinion can be unkind to those at the top ... even in Japan.

The Japanese Economy Minister Masayuki Naoshima was quick to blame the global economic system.

Naoshima said, "I think it's a serious issue because of the big scale. We're witnessing one of the risks of the global system. Ultimately I'd like them to cope with the situation resolutely, especially in regaining the confidence of the consumers."

Many analysts, such as Mizuno Credit Advisory founder Tatsuya Mizuno, blame Toyota's pursuit of cheaper supplies, especially to beat the strong yen overseas.

Mizuno said, "The reason why this large-scale recall is happening over and over again is because of the company's emphasis on cost-cutting measures. This is not just Toyota's internal problem but cost pressures towards parts-suppliers as well."

Many say Toyota's woes may also affect the overall image of Japanese brand names, including many that have already suffered setbacks in the recent economic crisis.

Takeo Namekata, businessman, said, "If Toyota hits hard times, there's a high probability that Japan will also. In particular, I think trade will suffer."

Others think the accelerator scare is overblown.

Toshi Komachi said, "I think there's no need to make much ado about it. It didn't cause the deaths of thousands of people."

Akio Toyoda, the grandson of Toyota's founder, has outlined broad steps aimed at returning the company to profitability and speeding up decision-making, but has yet to announce new plans to improve quality checks.