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Toyota Recall- Crisis Communication

ALEC 417- Issue Management & Crisis Communication
by

Kristi Block

on 8 November 2012

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Transcript of Toyota Recall- Crisis Communication

Consequences of the Organization's Actions: Worldwide recall of 8.5 million cars
Cost up to $2 billion for repairs and lost sales
Another $3 billion for legal litigation
Toyota announced new deals recently to bring shoppers back into its showrooms in the U.S. Sept. 29- Recall floor mats on 4.2 million Toyota and Lexus vehicles

Oct. 2- Toyota CEO Akio Toyoda publicly apologizes to Saylor family and all customers affected by the recall The Crisis: August 28, 2009- California patrol officer and family members are killed after his rented Lexus accelerated out of control. Principles Illustrated: Model 1- Press Agentry/ Publicity Model
Pushed information on to public.
Apologia Theory- defend reputation and protect image Could the Organization have
been more Effective? Worked with National Highway Traffic Safety Administration.
Listened to customer complaints.
Fixed the problem when the company first knew of it. Sources: Bensinger, K., & Vartabedian, R. (2009, October 25). New details in crash that prompted Toyota recall - Los Angeles Times. Featured Articles From The Los Angeles Times. Retrieved November 3, 2012, from http://articles.latimes.com/2009/oct/25/nation/na-toyota-crash25

Benton, J. (2010, May 16). Toyota Recall: How Much Will It End Up Costing The Automaker?. Breaking News and Opinion on The Huffington Post. Retrieved November 4, 2012, from http://www.huffingtonpost.com/2010/03/16/toyota-recall-how-much-wi_n_500446.html

LINEBAUGH, K. (2010, February 8). Delay in Response Led to Rift Between Toyota and U.S. Regulators - WSJ.com. Business News & Financial News - The Wall Street Journal - Wsj.com. Retrieved November 4, 2012, from http://online.wsj.com/article/SB10001424052748704820904575055733096312238.html

MacKenzie, A., & Evans, S. (n.d.). The Toyota Recall Crisis - A chronology of the Toyota pedal, floormat recall - Motor Trend. New Cars, Car Reviews & Prices, Used Cars for Sale, & Auto Shows at Motor Trend Magazine. Retrieved November 3, 2012, from http://www.motortrend.com/features/auto_news/2010/112_1001_toyota_recall_crisis/viewall.html by: Kristi Block Toyota Recall 2010 World's largest and most profitable automaker.
Known for quality and dependability. Crisis Continues Oct. 25- Local authorities and NHTSA reveal a set of rubber floor mats designed for the Lexus had been placed over the top of the stock carpeted floor mats and that the accelerator pedal had become jammed against them causing the car to accelerate out of control. Toyota's Response Oct. 30-Toyota begins sending letters to notify owners of an unspecified upcoming recall to fix the unintended acceleration issue. These letters state that "no defect" exists.

Jan. 11- Toyota announced its brake override software fix will be made global by 2011. Toyota's Response Oct.18- Los Angeles Times reports nine separate National Highway Traffic Safety Administration (NHTSA) investigations of unintended acceleration claims. Mission Statement: "To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America."

Vision Statement:"To be the most successful and respected car company in America."
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