Toyota, the biggest car maker in the world, has been in the news for the wrong reasons this time. The company has had to recall an additional 2.3 million vehicles due to a faulty gas pedal that can put drivers' lives at risk. This move is in response to reports that the accelerator pedal in many of its cars was losing responsiveness, resulting in accidents. Previously, the Japanese car maker had thought that this problem was caused by faulty floor mats, but it seems that the company realised the gravity of the situation before it got out of hand.
This step of recalling millions of vehicles has resulted in negative press for the company, though many may see that the company has put consumer safety above its own interests. Of course, the company will lose on financial grounds on an immediate basis, but may end up gaining highly-valued goodwill in the market. The company is not just calling back 'faulty' cars, it has also stopped the manufacture of the models till this whole issue is taken care of. Among the vehicles that will now be recall and not put into production again is Camry, Toyota's best selling car. So, it is obvious that the company realised that its profits will take a hit if sales of its most popular vehicle will be arrested before making such a move.
The company may make this situation an opportunity for itself by showing that it has more concern for drivers that its own revenue. This is, quite obviously, a smart move as the car maker can now control this situation and build trust and confidence among its key demographics. However the company may try to turn this situation around, the recall will surely hurt the image of the company as a reliable car maker. Thus, the company needs to fix the problem and create a foolproof method of making sure that it never occurs in the future. By ensuring that both these tasks are carried out within the least possible time, the company may be able to salvage some lost market as well as customers' faith. Moreover, its planning and strategising will also be crucial for maintaining its and reputation long term financial stability.
Many experts are comparing this situation with Tylenol's, a pharmaceutical manufacturer that suffered from a poisoned pill contamination in 1982. Back then, the company put the consumers ahead of its own profits and fixed the situation. Moreover, it also put measures into place so that such an event could not occur again. In the process, the company garnered a lot of appreciation for its efforts and enjoyed positive publicity that resulted in an excellent image among the public for years to come.
Considering how highly people speak of those who try to right their wrongs, Toyota should be able to recover, hopefully remove this incident from public's memory and even capitalise on this situation.
