Toyota faced a major crisis in 2010 when it recalled millions of vehicles due to safety issues, plummeting its sales and damaging its reputation for quality. As part of its crisis management response, Toyota placed advertisements, engaged executives on social media, and announced fixes to address customers' concerns. However, some felt the company's crisis communication team responded too slowly. in the future, Toyota's recovery will depend on how quickly and effectively it solves issues and communicates with customers.

1. CASE ANALYSIS
Organization: Toyota Motor Company
Industry: Automotive
Countries: Global
Abstract:
The case study is about crisis management at the Japan-based Toyota Motors Corporation, one of
the largest automakers in the world. In January 2010, Toyota was forced to recall millions of cars
after problems with braking, floor mats and acceleration pedals in its vehicles. The recalls even
led Toyota to halt sales and production of eight of its most popular models. Due to growing
number of recalls, sales plummeted thereby affecting the company's position in the global
automotive industry. Analysts began to question Toyota's legendary quality and felt that the
recalls represented a major failure on part of the company.
After the recalls, Toyota went into crisis management mode and announced a fix for the
accelerator problem.
The case describes the various crisis management initiatives undertaken by the company to
regain the trust of customers and restore its image as a quality automaker. As part of its crisis
management process, Toyota placed ads in print and television media, involved executives and
used social media platforms to address its customers. However, some analysts felt that the crisis
communication team of Toyota was weak which led to a delay in identifying and addressing the
situation. The case concludes by discussing what the company planned to do in the future to
contain the impact of the crisis. Crisis management experts were of the view that the image of
Toyota would depend on how quickly it can fix the problems and how well it communicates with
its customers.
Issues:
» Analyze whether Toyota's response to the crisis was adequate.
» Explore the PR and crisis management strategies that Toyota should adopt to contain the
impact of the crisis and retain its brand reputation.