Tag: Tacoma

Will we Witness Toyota Gain or Lose Trust?

Author: nst - February 24, 2010

Toyota is curiously sitting at no. 7 in Millward Brown’s top-10 list of most trusted brands as Congress spent the better half of the week giving Toyota a tongue-lashing for its handling and mishandling of the automaker’s quality control crisis.

The study’s authors readily point out that the data was collected over the course of 2009 and doesn’t reflect Toyota’s current dilemma as it unfurled at the beginning of this year.  The authors also note the automaker could learn from Tylenol, which in 1982 recalled 31 million bottles of pills after seven people were killed in the tampering scare.  That brand, which was forced to recall children’s liquid medicine last year, sits at no. 6 in the study.

Tylenol maker Johnson & Johnson has a history of effectively managing crisis situations, though the FDA earlier this year ridiculed the company for being slow to respond in its most recent crisis.  What this goes to show you, however, is a history of doing the right thing and acting aggressively in a crisis situation can maintain and build trust among stakeholders, consumers in particular.  Trust is fragile, and how you respond in a crisis situation can build and maintain trust, the authors state.

Toyota started off this week with public apologies before Congress.  How it fixes its problems, communicates with stakeholders and develops systems to prevent further lapses will determine if the automaker regains or builds trust, and where it will stand in next year’s report.


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Toyota Took a Wrong Turn on Crisis Management

Author: nst - February 3, 2010

Driving any highway or back road, you can barely miss a Toyota.  The brand is an automaker’s version of the six degrees of separation.  Wherever you turn, you see one, or you know someone who has one or know someone who knows someone who drives a Toyota.  Quality was the axis of its brand.  I had a Camry a few years ago; loved it and wish I got another after wrapping my front end around the rear of an F-150 (even the best-made car won’t hold up to a monster truck).

Expectations were high when word got out that Toyota had a problem. Surely, a company that built a brand and a massive following of consumers into the world-leading automaker would do the right thing: Aggressively address the issue head-on, right its wrong, profess mea culpa and produce a solution.

And that’s precisely what Toyota did this week.  Problem is, Toyota’s crisis began to unfold last fall, and when the automaker unfurled its media-mix campaign this week, including plopping U.S. honcho Jim Lentz in network studios, critics attacked – and rightly so.

Toyota succumbed to the growing media and governmental pressure too late.  The automaker, and this isn’t backseat driving, knew well enough and long ago it had a problem that would only get worse.  Instead of being proactive, Toyota chose to stick its head in the sand.  That right there can tarnish any brand.

The very premise of issue and crisis management is prevention – not just stopping the headlines or social media storm, but anticipating internal and external threats or vulnerabilities and shoring up those gaps at the operational level.  It’s spending painstaking hours in the C-level suite agonizing over what gives the CEO insomnia and working with the senior management team on systems and protocols, and collaborating with industry, academia, vendors, suppliers and any other party in the supply chain.  It’s putting procedures in place to minimize the likelihood of disruption in business.

The automaker had to have had a crisis plan in someone’s filing cabinet.  Instead, millions of Toyotas are sitting idle in sales lots; even more consumers are now questioning the company’s mettle.


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