Toyota Tries to Regain Reputation
In public, Toyota is running apologetic TV ads, vowing to win back customer trust. Behind the scenes, the Japanese carmaker is trying to learn all it can about congressional investigations, maybe even steer them along if it can.
It is all a part of an all-out drive by the world’s biggest automaker to redeem its once unassailable brand – under siege now as Toyota’s global recall expanded to some 8.5 million cars and trucks. The recall of 440,000 of its flagship and very trendy Prius and other hybrids, plus a Tokyo news conference where the company’s president read a statement in English pledging to “regain the confidence of our customers,” underscored a determination to keep buyers’ faith from sinking to depths from which it might not be able to recover again.
Facing U.S. congressional inquiries and government investigations, Toyota through its army of lawyers and lobbyists is working full-tilt to salvage its reputation. The confidential strategy – as Toyota will say little publicly about it – includes efforts to sway upcoming hearings on Capitol Hill and is based on experiences by companies that have survived similar consumer and political crises – and those that haven’t.
It was recently revealed that State Farm, the largest U.S. auto insurer, said it had informed federal regulators late in 2007 about growing reports of unexpected acceleration in Toyotas. That raised new questions about whether the government missed clues about the problems.
Federal safety officials said they were examining complaints from Toyota Corolla owners about steering problems.
Some say that the best strategy for Toyota would be apology, openness, details about a specific fix – plus a little help from friends on Capitol Hill.
Friendly legislators can limit the duration of congressional hearings and ask convenient questions that would give Toyota officials a chance to tell their side of the story. The goal would to limit unfavorable news stories about the hearings to as few days as possible, while making sure the company avoids being confrontational.
The Toyota recalls are the highest-profile congressional probe of the auto industry since a series of deadly accidents prompted the Firestone tire recall in 2000. Most of the tires were on popular Ford Explorer sport utility vehicles. Although the tires might have been defective, few other vehicles besides the Ford Explorer rolled when the Firestones blew out. Funny that Firestone seemed to take most of the blame for these design and manufacturing defects.
Both companies suffered damage to their reputations, but both bounced back. Ford was proactive, briefing officials with the National Highway Traffic Safety Administration and Congress and stressing that the safety of their customers was paramount. Firestone offered to replace its tires for free. Everything was pretty much forgotten and neatly swept under the carpet. We wonder if Toyota will manage to come out of this smelling like a rose…


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