communications toyota crisis final
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TRANSCRIPT
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Toyota Crisis – 2010 “Pedal to the metal”
Presented by: Team 2 Paramveer, Samuel, Daria, Nathalie, Sid, Wassil, & Deve
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Agenda
Presentation Structure
Presentation Objective
The Beginning…
Crisis Timeline
Analysis
Recommendations
Key Takeaways
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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
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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’.
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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
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The Analysis
Reactive Mindset
Hidden Information
Not Involving All Parties
Huge Revenue Lost
Tarnished Brand
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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
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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
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Questions?
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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