Upload
daria-ilgen
View
3.271
Download
6
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
i
Toyota Crisis – 2010 “Pedal to the metal”
Presented by: Team 2 Paramveer, Samuel, Daria, Nathalie, Sid, Wassil, & Deve
Agenda
Presentation Structure
Presentation Objective
The Beginning…
Crisis Timeline
Analysis
Recommendations
Key Takeaways
Objective
To introduce the 2010 Toyota crisis
Analyze Toyota’s communication (good/bad)
Describe how communication can effect the outcome of any crisis
Provide future communication recommendations
The Beginning…
Aug 28, 2009 – An improper installation of an all-weather floor mat from an SUV into a loaner Lexus sedan by a dealer led to the vehicle's accelerator getting stuck, causing a tragic, fatal accident…
… and launching the most challenging crisis in the history of iconic auto maker ‘Toyota’.
Crisis Timeline
Aug 28, 2009: Four people killed in an acclaimed "no brakes” Toyota Lexus crash
Oct 25, 2009: Investigation conducted by local authorities and the National Highway Traffic Safety Administration (NHTSA)
Oct 30, 2009: Toyota "no defect existence” letters to customers
Nov 25, 2009: Toyota recalled 3.8m vehicles to change all driver’s side mats, and denied media reports that a problem exists with its electronic throttle system (USA)
Dec 5, 2009: Media re-iterates its position on its findings about the acclaimed unintended acceleration with Toyota products - Toyota responds
Dec 26, 2009: Another motor accident with all four occupants dead
Jan 11, 2010: Toyota announced its brake override software fix made global
Jan 21, 2010: Toyota recalled another 2.3m vehicles because of ongoing ‘gas pedal’ problems (USA)
Jan 27, 2010: Another 1.1m vehicles added to the Nov 25, 2009 recall (USA)
Jan 29, 2010: 1.8m Toyota recall for faulty accelerator pedals (Europe/China)
Feb 1, 2010: Toyota declares plans to fix the accelerator
Feb 8, 2010: Toyota recalls .5m hybrid vehicles worldwide
April 5, 2010: NHTSA plans to seek $16.4m fine from Toyota for failure to acknowledge the pedal defects with the acceleration
The Analysis
Reactive Mindset
Hidden Information
Not Involving All Parties
Huge Revenue Lost
Tarnished Brand
The Learning's
Reputation
Friend…or Foe?
Clear communication channels
CEO involvement
Direct communication with all share holders (i.e. customers, employees, dealers)
More convincing explanations
Address immediate customers concerns first
“Am I safe to drive my car?”
Remain transparent
Takeaways
Listen to customers
Lead from the top
Communicate early and often
Provide definite answers
Corporate culture drives future success
“People want to see a company take full responsibility, be empathetic to the victims and their families and be in control by outlining the problem and how they intend to solve it…especially the CEO.” ~ Ong Hock Chuan
Over 8 million cars recalled
Over $30 billion in losses
Multiple lawsuits
11% drop in share prices
Loss of brand equity
Crisis Communication
Questions?
Resources
http://www.crisisnavigator.org
http://www.cbsnews.com/8301-505125_162-31041939/lessoned-learned-from-toyotas-crisis/?tag=bnetdomain
http://www.reuters.com/article/2010/02/03/retire-us-toyota-pr-idUSTRE6122JS20100203
http://danielkeeney.com/change-the-story-if-bad-news-piles-up/
http://2011-6209-big4.blogspot.com/2011/04/toyota-crisis-management.html
http://www.matteventoff.com/toyotas-crisis-communication-hiding-doesnt-work.html
“Management Communications”, 4th Edition, James O’Rourke, IV