Toyota & Wake Forest Join Teams

Toyota has recently invented the Total Human Model for Safety (THUMS) which can compile data on how the body responds in a car crash. Given the Japanese automaker’s reputation for being negligent, especially in the department of safety, this new software may be Toyota’s ticket out of the dog house.

According to the Winston-Salem Journal, Toyota has recently shared this software with the Virginia Tech-Wake Forest University Center for Injury Biomechanics, as a new strategy for studying head injuries involving sports players. With football concussions particularly in the NFL stealing the limelight, local biomedical researchers and Toyota are collaborating to measure the severity of a blow and how long a player must stay out to recover. The Center is receiving a version of THMUS which offers enhanced imaging of major organs, blood vessels, ligaments, tendons and muscles. In return, Toyota hopes to regain the hearts of many American families.

Currently, Toyota and Wake Forest University Baptist Medical Center are trying to raise awareness of their collaboration in a thirty second national television advertisement. The ad portrays a mother, driving a Toyota Camry, explaining how the automaker developed this software and shared it with Wake Forest. It is an emotional ploy designed to improve Toyota’s image by playing on the heartstring of mothers who might now see Toyota as their hero since the company is sharing findings that may help protect their children, particularly their sons who play football.

Additionally, the ad is part of Toyota’s new campaign titled “Ideas for Good” which the automaker may have released to regain loyal customer support. It is obvious that Toyota has high hopes of restoring their reputation as the industry leader in quality, environmentally friendly technology and responsiveness to its customers. Now they can add collaborator in biomedical technology to their resume.

It has been fun blogging this semester. However, this class is coming to an end and so must my blog. Thanks for reading!

The Swagger Wagon

What’s all the internet buzz about Toyota’s new Sienna? It's Toyota's attempt to make driving a minivan seem cool. According to U.S. News & World Report, the Japanese automaker has launched its online marketing campaign for the 2011 Sienna minivan… or as they call it the “Swagger Wagon.” Toyota has released a series of promos via YouTube, resembling a hilarious music video, which even features T-Pain’s signature auto-tune sound! The Swagger Family is a stereotypical white American, suburban family who rhymes about everyday family matters, from booboos to Yoohoos. Since its release in May 2010, the video has received over 7 million hits on YouTube. Talk about going viral.

According to Motherproof.com, “The folks at Toyota are working really hard to convince people that it’s cool to own a minivan. Whether they’re succeeding is up for debate, but at least they’re keeping us entertained with the ‘Swagger Wagon’ commercials for the Toyota Sienna.”

In Las Vegas this past week, Toyota released its newest addition to the Swagger Wagon family at the 2010 SEMA Car Show. The Swagger Wagon Supreme was designed to be a bracing antidote to the negative mom-mobile image of most minivans. Toyota stated, “The custom minivan dismisses the notion that to drive a minivan is to sacrifice personal style in favor of family functionality". Edmunds Insideline announced the Swagger Wagon Supreme is fully loaded with chrome wheels, rear spoiler, custom chrome exhaust tips and a "Blue Swagger Opal" paint job. Don’t forget about the bright Crayola-like shaded seats for the children.

Although the Sienna was not one of Toyota’s vehicles recalled for faulty acceleration, the automaker did recall 600,000 minivan models manufactured between 1998 and 2010 for reported corrosion problems in their spare tire carrier cables. Nonetheless, it just goes to show how a series of entertaining YouTube videos can help repair Toyota’s flawed reputation.

Till next time!

Graduate to a Toyota

Good news for all you new college alumni out there...

If you have obtained a college degree in the past two years, you may qualify for the Toyota College Graduate Finance Program. Toyota is offering college grads an incentive of $1,000 to purchase a new vehicle!

To attract these college graduates, Toyota developed a website strictly to promote this deal. It comes equip with user friendly language and youthful coloring. There is even a mini-dictionary that explains contractual terms in much simpler wording.The website also has social media links to both Facebook and Twitter. It is very dissimilar from their corporate website. I think Toyota’s public relations team must have had their hands in this project.

I have to admit, I took advantage of this offer in July and I could not be happier. However, with Toyota's corporate reputation at an all time low, I wonder if this will affect their financial performance. This week I read a few scholarly articles about this topic and came to a couple conclusions. Consumers are very interested in how companies behave. This has a great deal of influence upon their consumption behavior. Thus, financial pay-off can be gained from good behavior. With all the legal claims and denial statements, it appears that Toyota has not had the best behavior this past year.

Additionally, consumers value companies with good corporate responsibility. If Toyota wants to regain credibility amongst their consumers, they should start by giving back to the community. Lastly, the greater the news coverage, the better the company's financial performance. Ideally, this would be said for positive news coverage, although scholars have yet to prove it. As I stated last week, Toyota has see a slight increase in sales over the past six months. This could be a result of all their news coverage, even if it has been predominately negative.

Catch you next week!

The Year of the Recall

Toyota recalled 750,000 Lexus and Avalon cars this past week, which marked the corporation’s eighth recall in the past six months. However, Toyota is not the only auto maker to recall their vehicles this year.

Also last week, Chrysler recalled over 26,000 vehicles with power steering problems, while Volvo recalled almost 10,000 cars for airbag complications. Shockingly, CBS News.com reported that news of these safety announcements was nowhere to be found on their company websites. Additionally Honda says it is also planning a recall for brake fluid leaks.

It appears that everyone is jumping on the recall bandwagon. Within the last six months, GM and Nissan have had seven recalls, while BMW, Chrysler and Ford had five each. Overall, the auto industry has had 56 safety recalls for passenger vehicles, according to government data. I began to question the automotive industry as a whole. Are automotive tycoons cutting back on safety procedures and selling cars that are inadequate?

According to a blog by Laurent Belsie, the author suggests no. Belsie states that a J.D. Power and Associates survey showed that overall car quality actually went up this year. In addition, Belsie believes the recalls may be evidence that auto makers are becoming more proactive by addressing potential hazards before they lead to accidents.

Although I am skeptical of Belsie’s suggestions, I did take a look at J.D. Power and Associates website. I was happily surprised to see that Toyota’s Compact Crossover SUV, the FJ Cruiser, made the list for customer quality recipients.

With all this talk of recall in the news media, one would think that the auto industry is hurting hard for money. However, for Toyota, it has not hindered business. The corporation has announced that sales were up 16.8 percent this September as compared to last year.

That's all for now!!

The Grass is Always "Greener"

According to PR Watch.org, Toyota has taken great pleasure in their public image as an “environmentally responsible company.” However, no amount of “green” ads could prevent the disappoint that came when Toyota was nominated to Corporate Accountability International’s 2008 Corporate Hall of Shame for being significantly less green than the company has led the public believe. Toyota announced, in their annual sustainability report, that the Prius performs slightly worse than others in its class in terms of emissions.

To make matters worse, Toyota has been quietly lobbying against a proposal to increase fuel efficiency standards to 35 miles per gallon by 2020. Additionally, the company belongs to two trade groups, the Alliance of Automobile Manufacturers and the Association of International Automobile Manufactures, both suing to stop a new California law designed to lower greenhouse gases. And.. Toyota can thank their gas-guzzling, pickup truck, the Tundra, which only averages 14 miles per gallon, for their lowest fuel efficiency standards in two decades.

In hopes of maintaining their green “halo,” Toyota and Tesla Motors have signed an agreement to initiate the development of an electric version of the RAV4. This definitely sparked my interest. The Green Car Congress blog stated that prototypes have already been made, combining the Toyota RAV4 model with a Tesla electric power-train. The new RAV4 EV would be the second generation for an electric version of that model. Recently, I visited California and had the opportunity to rent a Prius. I was very fascinated with the battery power charge compact car and the fact that California grants drivers a discount for renting environmentally friendly vehicles, like the Prius. Therefore, I was not surprised that the first generations of RAV4 EVs were sold in California, as part of the state’s Zero-Emission Mandate program.

I think Toyota is skating on thin ice with their reputation. First the recall crisis and now the Corporate Hall of Shame, Toyota’s public relations team has a lot of work ahead of them. However, as a RAV4 fanatic, I am very excited about their new EV model launching in 2012. Let’s go Toyota, I’m rooting for you!

Same time next week? :)

Walk the Talk

Last week, I discussed how Toyota is going to need a miracle in order to regain public trust and save their reputation. Apparently this is more feasible than I previously suspected, according to recent news.

Toyota has high hopes of restoring their reputation as industry leader in quality, environmentally friendly technology and responsiveness to its customers. This past week, Bulldog Reporter's Daily Dog revealed that Toyota CEO Akio Toyoda and the company's 1,200 U.S. dealers met at the annual dealer meeting in Las Vegas. After recalling more than 9 million vehicles worldwide since its crisis began, Akio Toyoda stated: "I want Toyota to set a new benchmark in listening to our customers and dealers, sharing critical information and responding better than any car company in history."

However, it’s going to take a lot more than a rally to restore the company’s tarnished imagine. If Toyota is going to talk the talk, they have got to walk the walk, and act on their words.

In April 2010, Toyota launched the SMART evaluation process in response to customer acceleration concerns about Toyota and Lexus vehicles. This SMART evaluation process includes an analysis team made up of more than 200 highly skilled engineers and field technicians, trained to contact customers within 24 hours of a report and, if necessary, arrange for a comprehensive on-site vehicle evaluation. The SMART process has evaluated approximately 4,200 vehicles since the program was launched.

Toyota’s Product Quality and Service Support VP, Bob Waltz, and Kristen Tabar, General Manager of Electronics Systems

Also, last week, Toyota Motor Engineering and Manufacturing North America, Inc. (TEMA) announced that customers' concerns about acceleration problems have dropped by 80 percent since the SMART program began. In addition, Toyota will equip all 2011 vehicles with advanced safety features, including Smart Stop Technology and enhanced event data recorders. Lastly, Toyota is instituting new training protocols in order to strengthen quality, safety and reliability of its vehicles and responsiveness to customer needs (read more here).

It appears that CEO Akio Toyoda and TEMA are putting in huge efforts to rebuild Toyota's reputation, safety and customer services. Now this is walking the talk.

Until next week :)

Two Sides to Every Story

In communications, two people can completely agree or disagree on any concept. This wide range of misunderstanding and conflict is the price we pay for being human. In public relations, when vague or imprecise concepts are made into more specific and precise ideas it is called conceptualization.

Say I want to conceptualize Toyota’s recall, one indicator of this recall could be that Toyota had to comply with the United States government or the second indicator could be that the company felt it was their moral responsibility. Nonetheless, the fact of the matter is Toyota has made 5 million repairs to their vehicles within the U.S. in 2010. Therefore, instead of selling cars, the company has spent this past year fixing them.

Last week I stated that Toyota should not have to accept responsibility for human error. However, this week I am going to play the devil’s advocate. There are two sides to every story and am willing to uncover why, if Toyota is innocent, they fixed so many faulty vehicles.

Indicator one: According to CBS News, Toyota started to receive heat from the United States Congress back in February of 2010. The company received a subpoena from a federal grand jury in New York seeking documents related to unintended acceleration in Prius hybrid vehicles and their braking system. Shortly following, Toyota also received a subpoena and voluntary document request from the Los Angeles office of the U.S. Securities and Exchange Commission about the unintended acceleration and disclosed policies.

More surprisingly, Toyota claimed in internal documents that it saved money by obtaining a limited recall from regulations in 2007 by negotiating an “equipment recall” of floor mats involving 55,00 Toyota Camry and Lexus ES350 vehicles. These documents also cited millions of dollars in additional savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements. In response to Toyota’s negligence, the U.S. government fined the company $16.4 million, for hiding problems that could be the reason for dozens of deadly crashes.

Indicator two: According to Toyota’s North America Chief Quality Officer, Steve St. Angelo, recalls are an integral part of ensuring product safety and standing by their customers:

“Over the long-term, Toyota has built a record of safety, reliability and quality that’s unquestionably strong – and we’ve made significant changes at Toyota in the past several months to make sure we are an even more responsive, safety-focused organization. We’re listening closely to our customers and taking quick, decisive actions to ensure their vehicles are safe. Our strengthened quality assurance team is leaving no stone unturned as it thoroughly examines our entire fleet, including millions of cars and trucks that have performed reliably for more than a decade" (read full press release here).

When it comes down to statistics, of the total number of repaired vehicles, 1.8 million cars had problems with sticky accelerator pedals, 3.1 million with mats that could trap the pedal and about 128,000 cars needed new or fixed antilock-brake systems, in some 2010 Prius and Lexus models. In the court of law, you are innocent until proven guilty. My final verdict: According to the facts, Toyota you’re 100% guilty of selling unsafe automobiles. You better get your public relations team together quick, because they are going to have to perform a miracle in order to regain public trust and save the company’s reputation.

Catch ya same time next week!!

Let's Call a Spade, a Spade

Can research save a company's image? There is no doubt that Toyota’s recent crisis has questioned the Japanese automaker’s reputation for building safe vehicles. It is also indisputable that Toyota has recalled approximately 9.5 million cars and trucks. However, are Toyota manufactures to blame for faulty accelerators? The evidence suggests no. According to MSNBC.com, investigators from NASA and the National Highway Traffic Safety Administration have reviewed vehicle black boxes on 58 vehicles, in which the sudden acceleration was reported. In 35 out of those 58 cases reviewed, the black boxes illustrated no brakes were applied. These black box devices track which pedals were applied and how fast the car was traveling.

Further evidence suggests that drivers in about half of those 35 cases stepped on the accelerator pedal rather hitting the brakes. Additionally, only 14 cases showed partial braking. Should Toyota be held responsible for human error? As a Toyota customer and loyalist, I say no. The company should stand by its statement: “Having conducted more than 4,000 on-site vehicle inspections, in no case have we found electronic throttle controls to be a cause of unintended acceleration.” The facts have spoken. I say, let’s call a spade a spade.

However, we cannot forget that the government has received about 3,000 complaints due to sudden acceleration and presume it could be involved in the deaths of 93 people over the last decade. Therefore, sympathy towards these people and their families must be taken into consideration. Toyota has openly admitted that improperly installed floor mats and “sticky” pedals as contributors to unintended acceleration accidents. Yet, what the American people were looking for was a sincere apology and they did receive that from CEO Akio Toyoda.

This is where our two worlds divide, both geographically and culturally. In the United States, we celebrate self-proclaimed, business people, like Bill Gates and Steve Jobs. Additionally, being open and honest in all facets of interaction is very much an American concept. Contrarily, in Japan to be a successful corporate leader one should remain virtually nonexistent to the public eye, while his organization thrives. Saving face and allowing others to maintain their dignity, even when they may be wrong, ensures that all parties feel respected. Therefore, openly admitting a mistake or forcing another to do so, brings embarrassment and dishonor in this culture.

Working internationally poses many difficulties in the business world, like this minor cultural error. After some media training, Akio Toyoda accepted responsibility and even shed a few tears in front of Congress. Although this does not make up for the loss of life, Toyota is genuinely trying to do the right thing.

Talk to you soon!!

Today Will Be Tomorrow's Past

In addition to researching its publics, a good public relations practitioner will scan the environment for potential crises. In the chance that a crisis does occur, the practitioner must immediately engage in risk management.

Risk management is essentially the identification, assessment and prioritization of risks. These risks can occur from ambiguity in financial markets, product failures, legal liabilities, accidents, and natural disasters. The public relations practitioner must monitor and control the probability and/or impact of such unfortunate events.

However, Toyota’s public relations team neglected to engage in risk management. The company’s unsought acceleration nightmare mirrored Audi’s similar dilemma some years prior. In the early 80s, Audi was a forthcoming luxury auto brand in the United States until a “sudden acceleration” recall related to 6 deaths and 700 accidents put a screeching halt in the company’s sales. Over the next 5 years, Audi sales dropped 83% and it would take the company 15 years to rebuild their brand image and pre-recall sales (read more about Audi's sudden acceleration crisis here).

If Toyota had done its research on the Audi crisis, they would have been aware of its long-lasting impact on the company and developed their own crisis management plan. Essentially, Toyota could have walked away from its recent crisis without a scratch.

“There is only one thing more painful than learning from experience and that is not learning from experience.” -Archibald MacLeish

Thought I'd leave you with a laugh!!!

Communication is a Two-Way Street

Research is more than just gathering information. Public relations practitioners use research in a multitude of ways. Focus groups, surveys, secondary research, content analysis and in-depth interviews are all second nature to the practitioner. Each of these tools provides a company with important information used to raise awareness or shape public opinion.

Research is also an important part of maintaining long-term customers, as well as, gaining new ones. Keep in mind that long-term customers tend to spread opinions about a company much quicker than public relations can reach its publics. Therefore, having a free flow of accurate and truthful information with your customers is the best way to nip gossip in the bud.

During Toyota’s “faulty accelerator” crisis, the company faced public scrutiny from the media and disgruntled customers. Toyota responded by saying that, “Nothing is more important to Toyota than doing the right thing for our customers -- and restoring their confidence in the safety of our vehicles...(to read more click here)” The company verified this statement by listening and responding to public feedback.

In public relations we call this two-way symmetrical communications. Practitioners use two-way symmetrical communications to resolve conflict, promote mutual understanding and respect between the company and its publics.

In January of 2010, Toyota used its corporate website to convey its message about its "faulty accelerator" issue:"Toyota has taken the unprecedented step of stopping production to help serve our customers quickly and ensure that all new Toyota vehicles going forward do not experience this problem."

Toyota still provides links titled “FAQs” and “What We’re Doing” in order to accommodate customers. In addition, Toyota uses social media outlets Facebook and Twitter to informally address customer concerns.

It is obvious that Toyota did a great job relaying information to customers in a timely manner and allowed for open communication. Now Toyota has to focus on rebuilding it's brand image.

Till we meet again!!

Introduction

I love my Rav4. Yet, the recent humiliation about Toyota’s faulty accelerators has me question my safety, as I cruise around in my fashionable, 4-door SUV.

Toyota is highly regarded as a leader in the automotive industry. Because Toyota is an industry leader, the company is held at much higher standards than most car manufacturers. With that said, Toyota’s latest "faulty accelerator" crisis has not only hindered the company’s profits, but Toyota’s reputation too.

According to the company’s website, Toyota is always willing to lend a philanthropic hand to neighboring communities. In addition, the company is very environmentally aware and constantly exceeding industry standards. The Toyota way is cleaner, greener and full of innovation.

However, Toyota’s good values and environmental friendly behavior could not prevent the company’s annual sales from plummeting. This past August, Toyota announced that sales were down approximately 34% since last year (read more here).

The skeptical voice inside me questions what or who is to blame for Toyota’s financial deficit and tarnished image. Faulty accelerators? Toyota’s CEO Akio Toyoda? Or doubtful customers? Furthermore, I wonder if Toyota is exemplifying its motto “moving forward” in order to piece back together its once reliable reputation.

Throughout this semester I will be looking at Toyota’s company values, decision making skills and crisis management tactics, through a quantitative and qualitative lens. I will also take a deeper look into the company’s ethics and values. To better understand Toyota’s current crisis situation, I will look at the company’s financial and reputational status within the automotive industry at the macro level. Additionally, it will be important to consider international relations, as Toyota is a Japanese company manufacturing in the United States.

Until next time...