Toyota Parts Used
Toyota Recall Crisis
Toyota is a motor vehicle manufacturing company with its headquarters in Japan. It is generally abbreviated as TMC and is a multinational corporation which has employed more than 71,116 employees in the whole world. This is the largest automobile manufacturer as it has the largest number of sales in the whole world. TMC was established in 1937 by Kiichiro Toyoda. It was founded as a spinoff from his father’s company. Importantly, Toyota Company is the latest automobile company to face financial crisis. In the year 2009, this company reported an annual net loss of approximately US$4.2 billion. In the same year, the Toyota Company was reported to have recalled more than eight million cars and trucks in the whole world ((Aidoo 76).
The Toyota Company recall crisis started with a single, horrendous car hurtles in California. After this, other two separate recalls were reported that covered 7.5 million cars. These instances made this company to be forced to announce its suspension of the sale of eight of the company’s best selling vehicle. This move cost the Toyota Company and its dealers a minimum of approximately $54 million loss of sales income on daily basis. Importantly, the recall crisis of the Toyota Company was a very big threat to the world’s car industry. As it has been revealed, the first recall covered about 4.2 million Toyota and Lexus models. Reports have indicated that, the Toyota cars were reported to loose control after having malfunctioning brakes. This instance in South California led to the unfolding of these crises where a car lost control and killed four people instantly. The Toyota production management was to blame as the car owners had to replace their floor mats of their Lexus cars which were thought to interfere with the gas peddles. On September 29, 2009 the Toyota Company announced that it was recalling the floor mats on the already produced 4.2 million Toyota and Lexus vehicles. This was received by the vehicle owners as a production management failure of this company and hence its sales reduced drastically. After this, Toyota Company would have managed this crisis through the public relations in order to prevent their bad reputation from being spread all over the world. In doing this a lot of methods needed to be used those were aimed in restructuring the company’s reputation. Vividly, it was the failure of the production management to foresee that the floor mats would interfere with the gas pedals and hence resulting to accidents (Regester & Larkin 132).
Crisis Management through Public Relations
Public relation has become very popular for its assistance in managing crisis. Managing crisis through public relation involves identifying the crisis and the extent to which it affects the victims. The analysis of the impacts should be followed by implementations of action plan of communicating the views of the organization and hence influence customers’ perceptions towards the company. As indicated by the experts, the Toyota Company failed in its public relations in trying to manage the crisis of recall. In this case, a lot of advices were given to this company from many other competitors and those companies that produced other products. Additionally, the case of Toyota Company was used by many companies to learn not to fall in the same trap. Public relation is a very essential management issue that should be addressed in many companies. This is because the way a company represents itself to the general public in order to win the trust of the people. For the case of the Toyota Company, customer trusted its products’ quality because of the way the company had been producing quality vehicles from the time it was founded ((Aidoo 76).
Where Toyota Failed
The way Toyota Company used the aspect of public relations to deal with the recall crisis was wanting. As could be observed on televisions, the tone and message used to address dealers and customers was not up to the standards of what is required in the media. In this case, the Toyota Company was blamed for not being aggressive in the usage of public relation strategy in winning people’s trust. From the tone it was possible to indicate that this company was trying to restore the customers’ confidence on their vehicles but the strategy used was not the appropriate one. Despite the fact that, the company admitted that it made a mistake in quality control, the strategy used in passing this message across was not convincing. From the history of customers’ views on trusting malfunctioning companies, Toyota Company customers were still willing to forgive the production managers for the mistake committed and give it a second chance but were not wholly convinced (Liker 68).
When the recall crisis unfolded, the reports about how this company produced fake products were very much spread all over the world through the use of internet. Toyota Company would have frankly announced what was the cause of the problem and the efforts made by the company to fix it. Importantly, one of the major qualities of public relations is to take the full responsibility and being empathetic to the families and customers who were affected by the problem. The Toyota Company lacked this as the people were expecting even the president and the CEO of Toyota company to explain the problem and how they were intending solve and control it in future. As could be seen from the media, the apologies given by Akio Toyoda were not enough to convince the public to remain loyal to the company’s products. According the media, there were no tears that were shed by Akio to indicate that he was empathic to those people who died. This is one of the things that made the Toyota Company to be unable to utilize the aspect of public relations to win the customers’ trust (Regester & Larkin 132).
The actions taken by the Toyota Company to solve the crisis were very late as it was after the company was advised to actively and competently utilize public relations. The crisis of Toyota Company was declared as the worst handled in the history of management crisis. This is because the strategy used in addressing the public was not convincing. It would be advisable if the management of the Toyota Company to consult from the experts before addressing the public on televisions. Additionally, the use of internet through social interaction channels like Facebook and MySpace would have worked better for the Toyota Company. Basically, it would be easy to convince and beg for forgiveness from customers while using the facebook and myspace (Liker 68).
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