Recall Analysis- Why the Hype?
With more than 8 million cars recalled, Toyota certainly has its share of problems in the media. The effect of multiple major recalls is at least partly to blame for the intensity of the negative coverage that Toyota has received.
Starting with its largest-ever recall over unintended acceleration caused by the floor mat entrapping the accelerator, Toyota went very quickly to a second large recall for sticking accelerator pedals. Both stories were bound to be big news stories, but are compounded by the fact that headlines are reporting a large recall- again. In Toyota’s case, it seems that recalls are coming again- and again- and again.
The repetitive nature of the recall stories make the total story larger than the sum of its parts. Thus, Toyota is getting more attention for each recall- no matter how small or infrequent the problem.
The second major factor involved in the media attention has been Toyota’s reluctance to admit to problems in the first place. This has lead to speculation of a cover-up of a larger problem by Toyota and has opened Toyota up to high-profile complaints and lawsuits that further affect the company’s image.
Particularly in the case of its first recall, Toyota was reluctant to admit to a problem with the floor mats. As Toyota denied problems, media attention grew rapidly around the fatal accident involving off-duty California State Trooper Mark Saylor and his wife. As the details of the crash- including the disturbing 911 call made by Officer Saylor during the incident- became public, Toyota took a beating for what many felt was an attempt to whitewash the problem. The eventual recall fueled criticisms that Toyota refused to admit to a problem until lives were lost.
As these stories continue to snowball for Toyota, one last detail becomes evident. Toyota has spent years creating an image of a company concerned with safety and reliability. Toyota has also spent a great deal of effort promoting itself as a responsible corporation interested in the welfare of its customers.
The recalls and the poor handling of the underlying problems have been more devastating to the company because they directly strike at the company’s image. The recalls themselves are all that much more newsworthy particularly because they are so unexpected.
So, ultimately Toyota is faring worse because it is being held to a higher standard in general. In the short run, Toyota has failed to meet its own high expectations- and that will be its greatest mistake.
Toyota’s hope is that it can redeem itself. It must make every effort now to show that the recent errors were an aberration that has been corrected, not an indication that the company has lost its way.
