Monday, January 25, 2010

Toyota recalls cars!

I recall Paris. Not the city but the old Toyota Silver Edition, with Plate Numbers CET 931 that I used to drive back in the mid-90s. Those were the CITEM years. Paris would be parked in front of Hall 3, International Trade Center. Besides Paris, Rene Sale would park his Galant and Kaye Tyapon her Toyota Rav 4. Where is Paris now? Really don’t know. But Paris is definitely not among the thousands of Toyotas being recalled by the Japanese company.

Last January 21, 2010, Toyota announced the recall of 2.3 million (and counting) vehicles which includes Camrys and Corolla. Chief used to drive a Corolla. Other models or types involved in the recall, with a specific pedal assembly, are:
Certain 2009-2010 Corolla, Certain 2009-2010 RAV4, 2009-2010 Matrix, 2005-2010 Avalon, Certain 2007-2010 Camry, Certain 2010 Highlander, 2007-2010 Tundra and 2008-2010 Sequoia. Forbes Magazine reports that the eight suspended models account for 57% of the company’s U.S. sales.

According to the website, there are two safety recalls, the “Floor Mat Entrapment” which could interfere with the accelerator pedal and “cause it to get stuck in the wide open position” and the “Pedal” where a there is a possibility that “certain accelerator pedal mechanisms may mechanically stick in a partially depressed position or return slowly to the idle position.”

Last January 26, the company also suspended sales of the eight models involved in the recall on January 26.

"Nothing is more important to us than the safety and reliability of the vehicles our customers drive," said Jim Lentz, president and Chief Operating Officer, TMS. "We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can – as fast as we can – to make things right.

2.3 million cars means X amount of man-hours that Toyota dealers, mechanics and production people will work on to fix the problem. But the problem isn’t just mechanical. But from a communication’s standpoint, a crisis situation. Would be interesting to know and learn what is happening inside boardrooms as both Toyota and its advertising and PR agencies work out strategies to resolve this crisis.

Toyota is expected to lose millions of dollars. It would be tough to measure how this recall would affect its corporate image and reputation.



The U.S. National Highway Traffic Safety Administration says “it has no proof that anyone was injured by a stuck pedal.” It said it has confirmed to its satisfaction that five people have died as a result of floor mat entrapment. But lawsuits are coming down the road for the Japanese auto giant. At least 10 lawsuits seeking class-action status have been filed U.S. and Canada against Toyota .

Already, it has come out with full-page ads which says that what is happening is pause "to put you first." Lentz has also and will continue to make the rounds of morning and news shows. "This is embarrassing for us to have ... this kind of recall situation," Lentz told reporters. "But it doesn't necessarily mean that we have lost our edge on quality. But we do have to be vigilant. We have to redouble

When I used to teach PR in St. Paul College, Quezon City, I used the 1982 Johnson and Johnson Tylenol case as part of my crisis management lectures. It was a good case study of how the brand effectively handled a crisis. Now, we have tamper-resistant packaging because of that incident. But let us not forget 6 persons lost their lives as they took cyanide-spiked Tylenol.

While technology can fix this problem mechanically, a strong and convincing communications campaign would be needed for the customers and various stakeholders to bring back their trust and confidence on the Toyota brand.

Now, I will have to give it a second thought before getting a new Rav 4. Hey Neal Tieng, better have the pedals of your Rav 4 checked too!

If you are driving a Toyota, it would be best to you’re your dealer or visit toyota for more info and updates.

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