Also, the timing of Fenders buyout of Tacoma, with respect to market conditions, was pretty lousy. With the economic turndown, and expanding production competition from Asia, including the recent startup of Olympia, Fender was pretty much in a position of cutting their losses shortly after that buyout, as far as I can tell.
The reputed quality control issues with Tacoma are limited to the finish, in my experience. Finish de-adhesion issues affect guitars with heavy gloss finishes and the exotic woods rosewood and koa. All of the Thunderchiefs, except for a handful of customs, are built of spruce / mahogany with a light satin finish, which do not have finish issues.
Tacomas were marketed with a limited lifetime warranty, and the exotic wood finishes only lasted a few years. I can imagine that with a barage of Tacomas be returned to the Fender for refinishing, Fender would be motivated to pull the plug on the whole company, which it appears they did. The orignial Tacoma factory is now a cabinet shop.