The world's media engines are in high gear as they go after Toyota for the current spate of accelerator and braking issues. That's to be expected when you are now the world's leading maker of automobiles with an almost mythic reputation for quality. You become a target.
However, I don't think Toyota is in as much trouble as the press would have us believe. The prospect of owning a vehicle that can't be controlled is a frightening prospect, but these problems have only affected a tiny minority of customers. Most Toyota owners haven't had these problems and continue to express confidence in the company.
This confidence that Toyota will get it right in the end is due, in large part, to goodwill -- and Toyota enjoys two types of enduring goodwill.
The first is their commitment to quality and to the customer's ownership experience. No automaker delivers on this better than Toyota. I saw it in action as a consultant to their dealership education program about five years ago. Toyota had a fantastic reputation for quality even then, but the customer experience often fell apart in the independently-owned dealerships when folks went in to buy a car. They sometimes got the same sleazy treatment you get at any dealership. Toyota made a huge effort to eliminate that unpleasantness and replace it with one of respect and transparency. It was so successful that it resulted in a trend that was subsequently adopted by many competitors. The dealership purchase experience isn't perfect, but it is now much more in line with Toyota's overall reputation for quality and customer service.
Another source of goodwill wells from their pioneering efforts in fuel-economy and alternative fuel technology - the Prius being a particularly visible example. In my book, The Gort Cloud, I talk about how 'green goodwill' can help companies bounce back from the inevitable potholes in the road to growth. Factoring the future of the planet into their calculations of future profits has paid off for Toyota in immeasurable ways.
Toyota and its partners have a lot of work to do to repair cars and a reputation, but their consistent investment in goodwill will make that job easier. I have no doubt that all this will pass, and Toyota will be a better company for it.
Follow Richard Seireeni on Twitter: www.twitter.com/seireeni
Steve Parker: Toyota - Why It's all Happening Now
Toyota pioneered the "Q circle" system, which involved workers at all levels tackling problems in small groups. The "Toyota Way" became almost a religion within the car business.
"And in early 1996, Toyota engineers discovered that a crucial steering mechanism could fracture on the Hilux Surf, which was sold as the 4Runner in the United States. Toyota started installing a stronger version on new models.
Yet it took Toyota eight more years to start recalling Hilux Surfs and 4Runners built before the 1996 design change, after an accident involving an out-of-control Hilux Surf prompted a police investigation. Toyota received a rebuke from the Japanese government and was ordered to overhaul its recall system."
Stop referring to, and characterizing Toyota as 'green'. Most supposed green energy products are not green. If it aint green enough to mine, process and manufacture in a 'progresive' congressional district, directly in the NIMBY's back yard... then it is not green enough to call 'green'.
http://www.congress.org/congressorg/aol04/bio/userletter/?id=135465&letter_id=4267863821&content_dir=congressorg
http://www.huffingtonpost.com/wires/2009/11/23/yes-i-would-like-to-drill_ws_367239.html
The author cites the Prius as giving Toyota a reputation of being a green car company, but research has shown that hybrid vehicles are actually NOT good for the environment.
How come? It's rather simple: more damage is done to the the environment when mining for battery materials for such vehicles as the Prius. In fact, it's common knowledge within the auto industry that the Prius would be better off not being a battery-powered hybrid, as discussed here:
http://gmauthority.com/blog/2010/01/thoughts-on-hybrid-technology/
So it looks like the author of the article has bought into the marketing hype. :(
Toyota hypocritically spent billions recently to build from scratch their new full size SUV/pickup truck factory in Texas and the new SUVs and full-size pickups themselves--and the factory is less green than Ford's truck factory; so are the trucks. So why did they do it?
Toyota spent billions more to become a NASCAR manufacturer effective last year.......hmmm.....NASCAR racing is green how exactly? The race cars get about 1 mpg!
The Prius, Toyota's halo green car, has never made a profit--they have lost money on every one of the million-plus they have sold. I don't know if the Prius has been a plus or minus overall for the environment, but imagine the derision if GM, say, had designed, engineered, manufactured and sold 1 million cars at a loss--and done it on purpose!
And Toyota's factory in Burma/Myanmar........yes, THAT Burma. Even Laura Bush spoke out against that country. And Toyota won't close it. See www.nlcnet.org for all the ugly details.
Now Toyota is closing its only factory in California, where it sells millions of cars. 4,500 US workers, plus 50,000 US supplier jobs and ripple effect jobs, will be lost--yet Toyota has NEVER closed a factory in Japan. And Toyota was the primary beneficiary of the US "cash for clunkers" program.
The competitors want to turn this problem into a huge issue so they can take away Toyota's customers. but a better approach would be for them to make comparable cars. Make good cars with good mileage, fair prices, that hold up. It's not really a secret.