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Over the years, the automobile industry has been continuously bedevilled by the continuous recall of vehicles as a result of manufacturing defects. The recall of vehicles in the automobile industry is not limited to any particular manufacturer. Defective components or parts have always been attributed for the reason for the recalls, while some have attributed it to uncontrolled growth and expansion. For automobile companies to keep up with the growth in the automobile industry; it must be ready at all times to satisfy its numerous customers with quality, reliable and affordable products. Reliability of the product is essential to keep a good customer base. The competitive nature of the automobile industry requires that companies comply with international safety standards in the manufacture of cars while ensuring that components and parts supplied to production shop floor are capable (CP), and where defects have been identified, Failure Mode Effect Analysis and Critical Analysis (FMECA) be carried out on such components. The aim of this research paper is to investigate the causes of manufacturing defects in the automobile industry, a case study of the remote causes and effects of Toyota’s transmission malfunctions in cars. In other to achieve this, the number of recalls from various automobile companies was investigated, with a detailed case study analysis, with SWOT and PEST analysis on the case study company.