Often we read news related to the recall of several products that have been circulating in the…

Often we read news related to the recall of several products that have been circulating in the
market. One example is what was done by PT Toyota Astra Motor (TAM) and PT Astra
Daihatsu Motor (ADM) some time ago. They officially announced the recall or recall of several
product models. The following are excerpts of news published in Kompas related to the recall
of TAM and ADM products:

A few days ago, PT Toyota Astra Motor (TAM) and PT
Astra Daihatsu Motor (ADM), officially announced the recall or recall of several
product models.
The source of the problem is indicated by a malfunctioning fuel pump impeller. For
Daihatsu, there are three models that experience this problem, namely Sirion, Xenia,
and Terios with a total of 97,290 units in Indonesia.
For Toyota, the fuel pump problem is even wider in its lineup of units, from Rush,
Avanza, Voxy, Alphard, Camry, Hilux, Corolla, Fortuner, Innova, to the C-HR. The
total is approximately 286,000 units.
Well, it is important to know that recall is a form of responsibility from the
manufacturer to make repairs or replacements on problematic components in products
that have been marketed.
Previously, the Marketing Director of PT TAM, Anton Jimmi Suwandy, said that his
party chose to carry out a recall campaign with broad announcements so that the public
would be more aware. “Recall is the obligation of producers to consumers to repair
products that have been sold. We will inform the government before carrying out an
open recall, because it is open to consumers,” said Anton to Kompas.com some time
ago.

The same thing was said by the Executive Coordinator of the Technical Service
Division of PT ADM, Bambang Supriyadi, when he announced the recall for his 97,290
units in Indonesia. According to Bambang, the recall or repair campaign is a form of
service from Daihatsu to its users, be it first-hand cars to units that have been sold again
or have changed hands.

Question:
1. a. What do you think about Toyota Astra Motor and Astra Daihatsu Motor’s policy
regarding recalls?
b. Explain your opinion about risk mitigation in this case!
2. Mention and explain risk events from operational risk caused by 4 factors that may be faced
by automotive companies such as Toyota Astra Motor and Astra Daihatsu Motor!

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