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1) You learn a lot about someone during a crisis (think “George Bush, Katrina). This is not at all like the J&J Tylenol case, nor is Toyota’s response equivalent to J&J’s. In that instance, an unkown third party tampered with the product. It was not self-inflicted damage. Despite the fact that it quickly became clear that it wasn’t J&J’s fault, they IMMEDIATELY pulled 100% of product of the shelves (and destroyed it if I’m not mistaken). The ethos at J&J was “We’re in the health business. We will not have a dangerous product in the market for any reason, regardless of who’s at fault or how much it costs to pull it.” A B-School prof of mine interviewed the CEO of J&J about it, on the theme of “how were you so well prepared?” The CEO’s answer was that they weren’t prepared per se, but that the value system was such that there was never a moment’s question, anywhere in the company, about what was the right thing to do. So the response wasn’t a PR response but an authentic response (which undoubtedly made the PR team’s job easier).

2) I have seen varying accounts, leaving me not at all convinced that Toyota only now is discovering these problems. Indeed, some accounts indicate that Toyota didn’t act until NHTSA forced them to. The essence of Toyota’s brand promise is safe, reliable, affordable transportation. In recent years, some other things – luxury, eco-friendly – have been layered on top, but the underlying brand promise remains. It has taken an enormous hit. Not fatal, but big. Given the nature of the problems, the mea culpa should have been immediate and overwhelming. Statements like, “The reason we haven’t communicated with Prius owners about the brake problem is that we have figured out how to contact them yet” strain credulity. How about, “We have received reports of brakes failing to perform for less than one second after the car goes over a significant bump. There are no reports of injuries, and the interruption in brake performance appears to be so brief that it does not render the car unsafe to drive. We are investigating the problem and will contact owners as soon as we have found the cause. In the meantime, if you are concerned about your Prius, please call 1 800 No Brake or contact your dealer.” (No, I’m not serious about the phone number.)

3) Here’s where the PR comes in. Worst of all is the mea culpa ad Toyota is running now. In it, they make “our company” the villain, while “we” remain the good guys. It happens twice, at the beginning of the ad (“In recent days, Our Company had not lived up to the standards. . .”) and the end (“so that we can restore your trust in Our Company”). It sticks out like a sore thumb. The word you expect to hear is “we.” As in, “In recent days, WE haven’t lived up to the standards. . .”, which would be both a lot more compelling and, well, TRUE. “The Company” didn’t screw up, people screwed up. This is an especially surprising dodge from a Japanese company, especially one that historically has been as values-driven as Toyota. In traditional Japanese management culture, the CEO would fall on his sword over much smaller embarrassments than this. Instead, Mr. Toyoda is planning a goodwill tour of America. Underwhelming IMHO.

Those are my thoughts and I’m sticking to ‘em .

3)

I think in the beginning they did OK responding. The US president made his media rounds, they were open and honest and they acted quickly with each issue. However, when the Lexus Hybrid and then Prius recalls began rolling out, I started to change my mind of the handling of this by Toyota, and it was because of the response time by the head of Toyota Motor Corp., Pres. Akio Toyoda. I didn’t hear him come out and respond until after 4,5,6 (I lost count) recalls. And when he did finally make a statement, he didn’t really say anything. The last straw with me was on the US side. After all of the good steps they took it was this last one that turned me sour. When the Lexus/Prius recalls came out, the US president suddenly had “no comment.” As a PR person, this is a knife through my heart. So, they started out OK, and then fell flat. They probably depended on brand reputation to carry them through. Unfortunately, when people’s safety is concerned, and there have been fatalities, that should not be an option.