In my PR Cases class, we have been discussing crisis communications and the role that Public Relations plays in this situation. There are of course some iconic case studies that we analyze and review (ex. Tylenol), but we are also talking aout current cases that are happening as we speak.
One in particular that my students have been very interested in is the latest Toyota Recall Crisis. Even in this case, we as public relations professionals see that our work is still not done and the best practices that we preach and stress in our workplace and in the classroom are still not being implemented. Toyota recently reported a recall on brakes from certain models of their car, and the recall cost is up to $1.1 billion. Now, Toyota just announced that their Prius model, one of their most popular car models, also is having brake issues. Not only that, U.S. Secretary of Transportation Ray LaHood made a statement in a congressional hearing not to buy Toyota cars. Wow, it seems that Toyota can’t get a break in this crisis!
Gene Grabowski, chair of crisis and litigation practice at Levick Strategic Communications, recently made the comment to Newsweek that sums up the crisis that Toyota is facing right now by classifying this case as being “the worst-handled auto recall in history in terms of the consumer anxiety that persists and the mixed messages that were being sent at the outset.”
What are some of the crisis communication issues that is facing Toyota right now? What have they done that is not proactive in addressing this crisis situation? First, they were late in responding to this crisis. They should have had their president of U.S. sales, Jim Lentz, immediately on the forefront of addressing any concerns and issues that were arising from customers, dealers, and the media.
Second, they have not been proactive in addressing the non-traditional media. This includes bloggers, Twitter users, and other key social media influencers that are voicing their opinion and attitudes towards Toyota among their followers. Instead, Toyota has taken the traditional media route and focused on primarily addressing their customers through newspaper ads, television appearances, and other outlets. This is so 20th century – companies in crisis today have to be present and actively managing a crisis in all channels – traditional, non-traditional, and even the human channel.
Even though this case is evolving and not nearly finished, recent reports and studies have shown that the reputation damage is already impacting Toyota. Customers are wary in purchasing products from Toyota, and they are losing confidence in the brand.
In summary, Toyota should have been proactive in their crisis communication strategies and messages and taken a lesson or two out of the Tylenol Recall case that happened in 1982. Their leadership needed to be at the front of addressing any rumors, concerns, or issues being raised. Toyota needed to also be focusing on addressing all types of media outlets, not just the traditional media. Lastly, timing is everything – Toyota should have had a strategic crisis communication plan in place for an event that one of their products to be recalled.
These are simple steps in being proactive in crisis communications, and Toyota is learning the hard way and their brand and reputation is suffering for it.
Hope you all are having a good day!
Best Wishes,
Karen
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