(a) Identify and discuss the type of control Hyundai and Kia were exercising when they recalled over 1 million vehicles already sold to customers? (b) Explain how Toyota can use the three control types to ensure that they meet quality standards set during the planning phase. (c) Giving examples in the case study, list two advantages of control
Case study
Hyundai, Kia under federal Investigation for engine defect recalls, report says
Hyundai and Kia have recalled over 1 million vehicles for engine defects that could potentially cause vehicle fires, but both Korean automakers are reportedly under federal investigation to determine whether or not they could have done a better job.
The US Attorney's Office for the Southern District of New York has launched an investigation into how Hyundai and Kia handled its engine-defect problem, Reuters reports, citing a source with knowledge of the matter. Both Hyundai and Kia declined to comment to Road show.
The US Department of Justice did not immediately respond to a request for comment, but a DOJ spokesperson declined to comment to Reuters, saying that it usually doesn't confirm or deny such investigations, if they exist.
Reuters' source says the DOJ is working with the National Highway Traffic Safety Administration on the investigation. The source also told Reuters that while charges are certainly possible, they're not a given, but Hyundai and Kia could be made to pay some "hefty fines" if things move in that direction. In the past, Toyota agreed to a $1.2 billion settlement with the US government over its "unintended acceleration" debacle, and VW got slapped with a $4.3 billion fine for its role in Diesel gate.
(a) Identify and discuss the type of control Hyundai and Kia were exercising when they recalled over 1 million vehicles already sold to customers?
(b) Explain how Toyota can use the three control types to ensure that they meet quality standards set during the planning phase.
(c) Giving examples in the case study, list two advantages of control and three disadvantages of failure to adhere to internal control standards?
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