1. Driving a Crisis in the Wrong Direction
Stephanie Sabeerin
Since its establishment in 1937 Toyota has worked diligently and successfully to become
one of the world’s leading automobile manufacturers. The company’s cars are known for its
mileage, affordability, and convenience for different types of consumers ranging from college
students to families. However, in 2010 Toyota had a new quality rating to concern itself with:
safety. More and more Toyota customers were criticizing the company's products, but it was the
deaths that were accounted from various Toyota car accidents that led consumers and the media
to target the company, which led to a temporary downturn. Toyota was not responsive to
consumer complaints, media criticism, and the overall count of deaths that the company was
being associated with. The company’s lack of response led consumers and the media to believe
that Toyota was trying to conceal product defects, which made people question the safety behind
the Toyota brand even more. As a form of action, regardless of how late the action was taken,
Toyota initiated a recall of damaged automobiles. Although deaths were associated with the
Toyota brand, it was the crisis management and communication gap that accelerated the negative
press around Toyota.
In late 2009 consumers began criticizing Toyota about its products. Many of the
company’s cars were having acceleration difficulties, which were causing countless car
accidents. Initially, Toyota refrained from commenting on the situation or negative press,
claiming that these accidents had nothing to do with the vehicle itself or the Toyota name
(Marina). The lack of accountability only resulted in more outrage from consumers and the
media. As a course of action, Toyota issued a statement saying that the acceleration problems
were a direct result of the floor mats that were installed within certain cars. The company then
decided to begin a nation-wide recall.
Once the cars were recalled and enhanced, the vehicles were back on the market.
However, in early 2010 customers continued to complain about difficulties with their vehicles,
which led to accidents. Toyota then decided that the damage was no longer a result of the floor
mats. Instead, the company found that consumers were complaining about the gas pedal and its
lack of resistance, which Made the pedals jam and prevented the car from accelerating properly.
Again, Toyota began a recall of vehicles, this time the total amounted to over two million
vehicles (Marina). By the end of the Toyota crisis the company had recalled a total of just fewer
than nine million vehicles (Bhasin).
Toyota realized that the initial complaints, criticism, and recollection of vehicles would
hurt the brand. However, to endure a second round of recollection left executives questioning
what form of action to take next in order to keep the company afloat, and hopefully be able to
retain its reputation as a leading and reputable automotive manufacturer. Toyota’s stock had
already decreased by over 10%. The company began to include its consumers and the press on its
decisions and actions, developing a transparent form of communication between critics and the
company. Toyota needed to revamp its image as, not only efficient and consumer-friendly, but as
a safe and reliable vehicle. In order to do so, Toyota executives needed to ease consumers into
trusting the word of representatives, in addition to the overall brand.

2. On February 24 Toyota’s Chief Executive Officer, Akio Toyoda issued a public apology
to consumers and victims of accidents. Toyoda stated that through the rapid growth that Toyota
had been experiencing over the past few years, the company's priorities of producing safe,
quality-assured, and volume of production and sales, respectively, were confused (AP). Toyoda
admitted that the company had not been able to mindfully develop their products as a result of
the pressure of time, but Toyoda sincerely apologized for any harm that this lack of mindfulness
had caused, and assured listeners that the company is taking the necessary steps in order to
assure users that the company will act differently and develop products with consumer safety as
the primary concern (AP).
The communication between Toyota, its consumers, and the media continued to grow.
Throughout the remains of 2011 Toyota issued multiple press releases and spoke at press
conferences to update individuals on the steps and precautions that the company was taking to
assure consumer safety. Toyota explained that approximately fifty million dollars would be
funded towards a Collaborative Safety Research Center in Ann Arbor. The research center would
combine work and research from universities, hospitals, research institutions, and federal
agencies in order to optimize safety (Mahalak).
“The collaborative research will pursue integrated ways to enhance safety, involving the
vehicle, driver and traffic environment. Initial areas of focus will include reducing the risk of
driver distraction – a growing cause of accidents – and helping to protect the most vulnerable
traffic populations, including children, teens and seniors. These populations account for
approximately 30% of U.S. traffic fatalities” (Mahalak).
Toyota later developed a website for the research center where consumers and press could keep
updated from Toyota’s Communications Department. In Early September Toyota announced the
partners who would be working with Toyota to improve vehicle safety and performance. The six
partners included: Massachusetts Institute of Technology, The Transportation Active Safety
Institute, Virginia Polytechnic Institute and State University, Wake Forest School of Medicine,
and Wayne State University School of Medicine (Hanson).
Toyota used communication in order to maintain a positive relationship with consumers.
However, the company still lacked a title of ‘safety’. The employment of a research center
assured consumers that Toyota was taking the necessary actions to improve safety. In addition to
the research center, Toyota heavily promoted safety with the release of every new vehicle.
Recently, Toyota released the ad for the new Toyota Camry. The ad highlights the smoothness of
the car’s ride, the enhanced technology inside that is compatible with android phones, and the
classic look of the Camry. Most importantly, the ad emphasizes the safety of the vehicle. The car
is accessorized with airbags in the dashboard, door panels, and by the driver's and passenger's
knees in case of a head-on collision.
Despite the recall of over eight million vehicles from the market, Toyota still maintained
a loyal consumer base. In 1997 the Toyota Prius was introduced as one of the leading hybrid
cars. By 2010, the same year of the Toyota crisis, Prius sales topped two million. Additionally,
Toyota remains to be considered one of America’s leading car manufacturers. The company
faced a major crisis when consumers and the media began complaining and criticizing Toyota for
its faulty vehicles. As a drastic increase in car crashes came to the media’s attention, Toyota
issued no statement or press release. Uncertain of the cause of the problem within its vehicles,
Toyota later held a press conference stating that the problem derived from the vehicle’s floor

3. mats, which later proved not to be the problem. Toyota’s crisis management was poorly timed
and handled. Although CEO, Toyoda issued an apology at a later date, consumers didn’t feel it
compensated for the lives lost due to the company’s negligence. However, Toyota’s initiative to
begin a research center for safety in Michigan, along with the heavy emphasis of safety
throughout ads and production have led Toyota to become one of the nation’s leading car
manufacturers once again. This can be credited to the company’s reputation prior to the recall. If
Toyota was not as reputable of a brand name, then the crisis may have destroyed the company
and prevented it from being successful in the market due to poor crisis management.
Bibliography
"Bad Crisis Management." Thoughtsonpublicrelations. Blogspot.com,
Marina. Web. 07 Feb. 2011.
"9 PR Fiascos that were handled brilliantly by management."
Businessinsider.com. Kim Bhasin. Web. 26 May. 2011.
"Toyota CEO Apologizes for recall, accidents." Associated Press. n.d.
Web. 24 Feb. 2010.
"Toyota launches new collaborative safety research center in Ann
Arbor, Michigan." Toyota.com. Pressroom. Cindy Mahalak. Web. 09, Jan.
2011.
"Toyota collaborative safety research center announces 10 new projects
and six new partnerships with leading academic and research
institutions." Toyota.com. Pressroom. John Hanson. Web. 14, Sep. 2011.