Blog

Recalls can have a significant impact on public perception and consumer trust. Some companies can successfully navigate the rough waters that emerge after a recall incident, and others have a difficult voyage. Toyota is one such company that is now faced with the rocky journey to repair its image after numerous recalls which can equate to a marketer’s nightmare. However it seems the car manufacturer has every intention to go full steam ahead and make a successful navigation despite the fact that since 2009 over 14 million vehicles have been recalled for a multitude of reasons. Problems that have occurred are faulty floor mats, issues in braking software and, the now infamous ‘pedalgate’ of 2009, which related to sticky gas pedals. The most recent round of recalls occurred on Feb. 24, 2011. The New York Times recently reported Toyota recalled “another 2.17 million vehicles to fix problems that could cause their accelerator pedals to become stuck, a setback in its efforts to rebound from the uncertainty that swirled around the carmaker last year.” Auto manufacturer Toyota outlined its global vision on March 9, 2011. In this unveiling Toyota President Akio Toyoda noted that the company is going to strive to sell 10 million vehicles by the year 2015. According to MSNBC, the company president also acknowledged ‘overly rapid growth’ was a core issue with the recalls the company was plagued with in recent times. Last year Toyota was the only major car manufacturer to experience a decline in sales. The New York Times also reported Toyota sold 0.4 percent fewer cars, while other carmakers grew 13.4 percent. Despite the decline, Toyota still managed to sell 8.42 million cars last year worldwide, which came ahead of General Motors’ 8.39 million sales. However a decline is still something to consider and based on Toyota’s new strategy, this is an issue they plan to rectify. While Toyoda states he only gave a number because he was asked, he said the main focus of Toyota’s vision is to “make millions of customers happy” and stressed the 10 million figure is a “numerical sales target” according to the MSNBC report. Primary goals accentuated quality controls, customer satisfaction and solid profits. Other key changes in Toyota’ s strategy include: • An improved public image • Seek new growth in emerging markets such as China and India • High focus on quality • Reducing board of directors from 27 members to 11 • Adding two overseas executives to have a quicker response rate, instead of 13, there will be 15 • Increase number of hybrids produced A primary component of the vision is that the auto manufacturer learning from past mistakes that directly appear tied to quality assurance issues and the 2009 global financial catastrophe. In the consumer eye, this is likely an important factor because if Toyota cannot effectively regain the trust of the consumer market, the outlined goals, and the strategies to support them, will be much harder to attain. Questions undoubtedly crossing the minds of consumers are safety related and if they purchase a car, will it be recalled for some issue? The recent 2.17 million car recall is still fresh. Reportedly Toyota is also going to focus on “exciting model designs”. Toyota is forecasting a profit of $6.6 billion at the end of this fiscal year, which will occur on March 31. Category:Home › Other • Pomegranates: A newly discovered superfood • Where did the joke why did the chicken cross the road come from and why is it funny? • Can mothers diagnosed with bipolar disorder make good parents? • Spiritual evolution of human consciousness • Tips for getting a college basketball scholarship • Living with Pseudotumor cerebri (PTC) • Caring for the caregiver • Technologys impact on society