Toyota Crisis

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Category: Business and Industry

Date Submitted: 10/10/2016 11:59 AM

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Feng Liu

BA2196-028 / Teresa Cirillo

Writing Assignment: Crisis Communication

Toyota Crises Response

Toyota is very popular in the United States as one of the largest manufacturers of cars (Liker & Ogden, 2011). Nevertheless, in August 2009, its outstanding reputation was put into a question when Mark Saylor, a California based highway controller, together with his family contacted the 911 when the gas pedal of his car stuck leading to a race of 100 mph. This made his Lexus to crush into another vehicle which resulted to all of the passengers on board being killed. As such a fatal accident got attention, the secretary of the transport of the United States ordered all the vehicle owners to stop driving their Toyota related vehicles immediately. Toyota recalled more than 5 million vehicles as a result of the floor mat entrapment which was related to the fatal incidence (Milwaukee, 2011). By the end of the year 2009, another fatal incidence was witnessed at San Diego which was related to the accelerator. In this crash, a Toyota Avon flipped into an emersion leading to the death of four additional people. Since the previous incident had suggested that the accident was caused by the floor mat, the driver had decided to safely remove the floor mat .Since late 2009, the company has recalled more than 16 million vehicles (Milwaukee, 2011).This has made a negative impact on the side both the financial impacts as well as the global image and this led to a public crises. The crisis is significant as a result of the notable number recalls including 8 models of the company. However, it only took the company less than three months to recover from the crisis (Liker & Ogden, 2011). By 2010, the company had a reputation that was almost spotless. In such a crisis that had reached the global rim, Toyota was able to apply its crises response plans to bring back its reputation. (Liker & Ogden, 2011). Toyota effectively overcame the crisis because the following three...