Thursday, February 18, 2010

Toyota: Driven To PR Distraction

Toyota's continuing public relations nightmare serves as a reminder to business, big and small, about avoiding delays of any kind in crisis management.

The world's second largest automaker (after German group Volkswagen-Porsche) is fighting an uphill public relations battle as the U.S. government turns up the heat for Toyota to fully disclose all information in connection with next week's congressional hearing about the company's recalls.

Gas pedals, brakes and steering are all under scrutiny. And, with each daily report about another issue involving Toyota's vehicles, it seems to slip deeper into the quagmire of bad news.
Initially, Toyota seemed hesitant to acknowledge a problem with its vehicles' gas pedals. Instead, the automaker insisted the problem was the direct result of floor mats trapping the pedals, in an apparent effort aimed at minimizing the problem's scope.

The road back for Toyota Motor Corp. appears to be long and winding, filled with bumps and potholes. Yet, even now, TV commercials aside, Toyota's top executives still don't seem to grasp the crisis in consumer confidence.

In Japan, President Akio Toyoda said he did not intend to appear at congressional hearings next week in Washington, preferring to leave that to his U.S.-based executives while he focuses on improving quality controls, The Associated Press reported. Toyoda, grandson of the company's founder, said he would consider attending if invited.

Hello, waiting to be invited? I guess Toyota didn't pay much attention when the top executives of the Big 3 American automakers flew corporate jets into Washington, D.C., to discuss taxpayer bailouts. It's style and substance, folks.

In an attempt to reassure car owners, Toyota said it would install a backup safety system in all future models worldwide that will override the accelerator if the gas and brake pedals are pressed at the same time, the AP reported. Acceleration problems are behind the bulk of the 8.5 million vehicles recalled by the automaker since November.

The emergence of potential steering problems
with Corolla presented another roadblock in the automaker's efforts to repair its image of building safe, reliable vehicles. Dealers across America are fixing accelerators that can stick, floor mats that can trap gas pedals and questionable brakes on new Prius hybrids, according to the AP.

Toyota executives will face scrutiny in America, where the Transportation Department has demanded documents related to its recalls. The department wants to know how long the automaker knew of safety defects before taking action, the AP said.

Reports of deaths in the United States connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the alleged death toll reaching 34 since 2000, according to new consumer data gathered by the U.S. government, the AP said.

The bottom line: Toyota should be held to the same safety and accountability standards as U.S. automakers. That is the very least American consumers have a right to expect.

As for me, I practice what I preach at writenowworks.com.

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