The Recall – Don’t Dismiss Toyota

I realize that defending Toyota in February 2010 is like defending Richard Nixon in August 1974, but I'm about to do something that will make me about as popular at a Green Drinks gathering as a big juicy Costco steak.

 

I'm going to cut Toyota some slack.

 

I have not followed this story as closely as all the automobile bloggers out there.  It seems to me that they knew of all these problems and either at least, underestimated the problem, or at worst, tried to sweep them under the floor mats.  That was a mistake.  Indeed, it must have been humbling for the scion of the Toyoda family to bow before the Japanese public and apologize profusely for Toyota's problems.  Of course, that news in Japan was eclipsed by stories of a sumo wrestler annoucing his retirement.  Meanwhile, the Secretary of Transportation should have spoken out sooner, and appears to have egg on his face after the past week's sad episode.

 

But to American automobile manufacturers or hyperactive public transit advocates, I say that indulgence in Schhadenfreude is premature.

 

Let's put this in context.  Toyota's issues with floor mats or braking systems are probably the result of laggard internal communications or unweildy supply chain issues.  I doubt there are nefarious intentions here.  My limited, very limited work at Toyota exposed me to some very smart, motivated people.

 

Remember that despite the noise, other car makers selling their wares in the US have had larger recalls:  Ford Motor and General Motors both have had huge recalls that outnumber Toyota's . . . GM had one larger in the early 1970s, and Ford still leads the pack with its cruise control recall.

 

I am all for public transportation, but those spouting the beliefs that we will ditch their cars for LA Metro buses are deluded.  And Michigan lawmakers, who seem absolutely incompetent in turning around their struggling state's economy, will grandstand in Congress and Lansing while American automakers are salivating at regaining marketshare they gave away on a platter of poor design and poor vendor management.  I remember the news clips from the 1990s when American manufacturers complained that the Japanese were scheming to put them out of business--the truth is that if Toyota had such an agenda, they would have succeeded by now.  American automobile manufacturers' woes are of their own making.

 

My feeling is that Toyota can turn this around.  They were the company that introduced small cars to America--and people laughed at the idea when they first attempted their US market entry in the 1960s.  Decades later, Toyota has led the pack with their hybrid technology.  Car afficionados (an oxymoron to me) may laugh at the Prius, but they are selling, and for the most part, their owners are happy:  300 complaints out of 300,000 sold are pretty good odds.  Meanwhile, I don't see many Teslas on the road. 

 

Toyota can look back to Johnson & Johnson and the Tylenol scare of the early 1980s for some hints on how to turn their sullied brand around.  Through no fault of Johnson & Johnson's (and apparently, the case is still unsolved), 7 people died after taking Tylenol laced with cyanide.  The results were awful:  Tylenol's market share went from over one-third to less than one-tenth; the products were taken off the shelf; and Johnson & Johnson took upon an ambitious P.R. campaign that today stands as an exemplar model of crisis management.  By the way, the reason why we have caplets, and not taking analgesics in capsules, is because of that sad episode.  It did not take long for Tylenol to once again regain its largest market share.

 

My feeling is that if Toyota works with its dealers, takes care of the recalled vehicles, and makes amends to its customers, the Toyota brand will survive.  It will take a lot of hard work and many mea culpas, but I think Toyota can come out stronger in the end.

 

Full disclosure:  I have driven my Nissan for eight years.  Years of renting American cars at rental car agencies helped cement that choice.