Toyota should meet recall questions with big doses of transparency
Until a few days ago, who didn’t want to be Toyota? They had it all. A sterling reputation for quality. The world’s most popular hybrid car. Insanely loyal customers. And in 2009, to crown it all, Toyota ended General Motors’ 77-year run as the world’s largest automaker.It probably would have been nice for Toyota if it could have had some time to celebrate being top dog, but that wasn’t meant to be. The company is playing defense over recalls affecting 9 million of its vehicles worldwide. The news that gas pedal assemblies on its top models can cause sudden acceleration strikes at the most durable part Toyota’s brand image – its reputation for quality. Toyota got great by making quality cars that people could afford. It built that reputation one solid, reliable Corolla, Camry and Prius at a time. Even though competitors like Honda and Nissan were rated just as highly, Toyota was to quality what Volvo was to safety – first among equals and better than everyone else.
Now the auto company that could once do no wrong has shut down production lines and instructed dealers not to sell some of its most popular models. The New York Times reported that Toyota knew about the acceleration problems two years before it issued the recall. Rep. Henry Waxman, one of Congress’ most persistent consumer watchdogs, announced he will hold hearings to investigate the sudden acceleration problem next month.
What’s unfolding is the next great case study on the value of openness and transparency. Toyota has already said it welcomes the chance to address the issue head-on and publicly at Waxman’s hearings. The company has already started a pre-emptive media campaign. Toyota issued statements saying it started working on a solution this fall, when it learned how pervasive the problem was. Toyota CEO Akio Toyoda issued a public apology from the World Economic Conference in Davos. Toyota USA President Jim Lentz faced Matt Lauer on the “Today” show. The company announced over the weekend that it has rushed millions of repair kits to dealers.
So the court of public opinion is convened. How will the Toyota brand come out the other end? It depends how the company’s mea culpas resonate with the public. If Toyota is perceived as earnest and sincere, history has shown that the public will forgive it and continue to see it as a brand synonymous with quality. If it is perceived as elusive and defensive, then the Toyota brand could become just another name in the pack.
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