Jaffa
Toyota’s
Cultural
Crisis
A case analysis of the company’s 2010 recall and the communications crisis that could have been avoided.
By Ashley Nichols
In late 2009, a public relations nightmare that had been brewing finally became a fullfledged storm of bad publicity when the Toyota Motor Corporation recalled more than 4.3 million vehicles due to a gas pedal and unintentional acceleration concern. Working in concordance the National Highway Traffic Administration (NHTSA), the company had attempted to fix the problem both by recalling of affected models and encouraging Toyota owners to remove improperly fitted floor mats, which were thought to be the cause of the issue.
Meanwhile, American media outlets were reporting about Toyota’s so-called corrective actions.
At the beginning of 2010, Toyota’s future appeared tumultuous. After yet another gas pedal recall, the car company suspended its sales and ceased production of affected models. By
February 4th, 2010, the company had recalled a total of 8.1 million vehicles (“A Timeline Of,”
2010). By this time, American politicians and Toyota owners had become increasingly distrustful towards the previously well-considered company. Most of this ill-will had come to light not because of the company’s actions, but because of its inactions.
Toyota’s public relations response to the recall crisis was very slow, and many
Americans began to believe that the company had something to hide or was trying to cover its tracks. The CEO of the company, Akio Toyoda, did not make a statement about the crisis until
February 5 (“A Timeline Of,” 2010). The American media criticized the company for a lack of transparency and action while the situation was unfolding. However, Toyota had been taking action. The issue was that the company had been practicing Japanese style public relations and was unprepared to face the cultural differences that turned the crisis into a media firestorm.
Another difficulty the company
Cultural
Crisis
A case analysis of the company’s 2010 recall and the communications crisis that could have been avoided.
By Ashley Nichols
In late 2009, a public relations nightmare that had been brewing finally became a fullfledged storm of bad publicity when the Toyota Motor Corporation recalled more than 4.3 million vehicles due to a gas pedal and unintentional acceleration concern. Working in concordance the National Highway Traffic Administration (NHTSA), the company had attempted to fix the problem both by recalling of affected models and encouraging Toyota owners to remove improperly fitted floor mats, which were thought to be the cause of the issue.
Meanwhile, American media outlets were reporting about Toyota’s so-called corrective actions.
At the beginning of 2010, Toyota’s future appeared tumultuous. After yet another gas pedal recall, the car company suspended its sales and ceased production of affected models. By
February 4th, 2010, the company had recalled a total of 8.1 million vehicles (“A Timeline Of,”
2010). By this time, American politicians and Toyota owners had become increasingly distrustful towards the previously well-considered company. Most of this ill-will had come to light not because of the company’s actions, but because of its inactions.
Toyota’s public relations response to the recall crisis was very slow, and many
Americans began to believe that the company had something to hide or was trying to cover its tracks. The CEO of the company, Akio Toyoda, did not make a statement about the crisis until
February 5 (“A Timeline Of,” 2010). The American media criticized the company for a lack of transparency and action while the situation was unfolding. However, Toyota had been taking action. The issue was that the company had been practicing Japanese style public relations and was unprepared to face the cultural differences that turned the crisis into a media firestorm.
Another difficulty the company
Cited: Akio Toyoda. (2010, June 25). The New York Times, Retrieved from http://topics.nytimes.com/top/reference/timestopics/people/t/akio_toyoda/index.html A Timeline of Toyota Recall Woes. (2010, February 11). CNN.com, Retrieved from http://www.cnn.com/2010/US/02/10/timeline.toyota/index.html?hpt=C2 Hogan, Dave. (2010, February 24). Toyota 's pr crisis offers lessons for other businesses. Toyota, Honda Lead Softer Car Sales in March . (2011, April 5). HeraldSun.com, Retrieved from http://www.heraldsun.com.au/news/breaking-news/toyota-honda-lead-softer-car-sales-inmarch/story-e6frf7ko-1226034037617 Toyota Invites Outsiders to Boost Quality . (2010, July 12). Quality News Today, Retrieved from http://asq.org/qualitynews/qnt/execute/displaySetup?newsID=9128 Toyota 's President Getting Harsh PR Lesson. (2010, February 24). CBS.com, Retrieved from http://www.cbsnews.com/stories/2010/02/24/earlyshow/main6238458.shtml