Accelerating Into Trouble:. An Analysis of Toyota Motor Company and its Recent Recalls. The multiple recalls of 2009 and 2010 concerning Sudden Unintended Acceleration involved over 10 million vehicles and resulted in tremendous financial losses for Toyota.
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An Analysis of Toyota Motor Company
and its Recent Recalls
Off-duty California Highway Patrol officer Mark Saylor Unintended Acceleration involved over 10 million vehicles and resulted in tremendous financial losses for Toyota.was driving with three family members in a Lexus ES350 when it suddenly accelerated out of control, hits another car, tumbled down an embankment and caught fire. While the car was careening down the highway at speeds estimated to exceed 100 mph, one of the occupants called 911 and reported that the car had "no brakes." All four people were killed in the ensuing crash.
Source: Channel 10 News, San Diego, California
1. Tell the truth Unintended Acceleration involved over 10 million vehicles and resulted in tremendous financial losses for Toyota.
Initially, Toyota withheld information and misled consumers concerning information about the recalls. The true extent of how much was left unsaid my never have surfaced if it wasn’t discovered by mass media, which led many stakeholders to question the integrity of the company.
2. Prove it with action
Toyota expressed strong remorse for the trouble caused by their recalls through numerous apologies, but they never offered a solution. Toyota would have greatly benefitted by seeking a solution amidst the apologies.
3. Listen to the customer
It’s vital for Toyota to listen to their customers for obvious reasons. Their success as a company on that mutual relationship, and their expectations must be identified and fulfilled.
4 Unintended Acceleration involved over 10 million vehicles and resulted in tremendous financial losses for Toyota.. Manage for tomorrow
Toyota did both a commendable and condemnable job in regards to managing for tomorrow. While they rebounded well with public relations efforts, the short-term gain may be overshadowed by long-term problems ahead caused by clumsy communications at the inception of the crisis.
5. Conduct public relations as if the whole company depends on it
Public relations is not to be used strictly in times of emergency, and Toyota, like many other automotive companies, realize this now more than ever. A solid public relations presence will be crucial in ensuring Toyota doesn’t take steps backward in the wake of its recalls.
6. A company’s true character is expressed by its people Unintended Acceleration involved over 10 million vehicles and resulted in tremendous financial losses for Toyota.
For nearly six months after the California accident, Toyota’s top management was nowhere to be found. In this study, character and integrity determined what course of action was taken and what would become of those actions.
7. Remain calm, patient and good-humored
Toyota did an excellent job at remaining calm during the beginning stages of the crisis. However, this patience eventually turned into inaction and launched the situation into a crisis.
Toyota has, for the past few years, has been expanding its business rapidly. Quite frankly, I fear the pace at which we have grown may have been too quick. I would like to point out here that Toyota's priority has traditionally been the following: First; Safety, Second; Quality, and Third; Volume. These priorities became confused, and we were not able to stop, think, and make improvements as much as we were able to before…We pursued growth over the speed at which we were able to develop our people and our organization, and we should sincerely be mindful of that…I will do everything in my power to ensure that such a tragedy never happens again.- Akio Toyoda, statement during Congressional hearing on Feb. 24, 2010