Rock Solid No More: Toyota’s Image Takes A Hit

Toyota could use a PR makeover.

Toyota responds to criticism by sending out the PR clowns. Big mistake.

Toyota responds to criticism by sending out the PR clowns. Big mistake.

Few Americans under the age of 40 remember when Toyota vehicles were viewed as cheap, poorly made imports. First introduced to the US consumer in 1958, by the late 1970s fast improving Toyota was ahead of America’s vaunted auto industry in several important areas including price, long term value, and reliability.

New No. 1

Over the next three decades Toyota — along with Honda, Nissan and other Japanese automakers — continued to erode Big 3 market share with Toyota reaching its nadir in 2007 when it supplanted GM as the world’s largest producer of automobiles, breaking GM’s 77-year reign.

But Toyota’s surge may have come at a steep price — in quality as well as its overall image.

Other than Honda, no other manufacturer has offered Toyota a serious challenge when it comes to quality and long term value. However, several notable recalls and quality issues have surfaced over the past several years, casting Toyota in an unfamiliar light with many consumers.

Tacoma Recalls

In 2008, Toyota launched a massive buy back program for owners of 1995-2000 Tacoma trucks due to frame rails that had rusted out. Consumer groups and enthusiasts applauded Toyota for a generous recall campaign which in many cases paid owners far more than the blue book value for their trucks. Yet, it was a costly initiative which also revealed that Toyota has its own battles with quality.

More recently, Toyota issued a recall of 110,000 of its big Tundra trucks as certain 2000-2003 models sold in mostly northeastern states could rust out due to excessive road salt usage. According to Consumer Reports, rust problems could cause the “…rear cross-member frame to fail and could lead to the spare tire falling out. The corrosion could also cause damage to the rear brakes and possibly lead to brake failure.”

Runaway Toyotas

But that latest recall pales in comparison with one involving nearly four million Toyota and Lexus models, a “Runaway Toyota” problem with possible fatal consequences. Toyota insists that all weather floor mats are to be blamed for stuck accelerators which have caused some cars to speed out of control, killing as many as nineteen people according to various sources.

Indeed, those sources aren’t just your run of the mill automotive bloggers, as both the Los Angeles Times and ABC News have picked up on the story and run with it. Over the past several weeks these two media outlets have led the charge, running stories about Toyota’s problems, with Consumer Reports (CR) chiming in.

CR has also drawn attention to Toyota’s very public shouting match with the National Highway Safety Transportation Administration (NHTSA) over the floor mat recalls and has spotlighted Toyota’s argument with the Insurance Institute of Highway Safety (IIHS) whereby the IIHS said that no 2010 Toyota, Lexus, or Scion models passed its most recent safety tests, issuing a press release where Toyota said, “IIHS’ statement that Toyota was shut out for 2010 is extreme and misleading, considering there are 38 Toyota, Lexus and Scion models, and only three were tested for roof strength by IIHS: Camry, RAV4 and Yaris.”

Toyota Defensiveness

Though Toyota certainly has a point with the IIHS findings, the automaker is coming across as defensive, defiant, and surly. Apparently, the automaker has allowed its American PR people to take the lead in responding to complaints with nary a word from Chairman Toyoda himself. Mr. Toyoda’s public apology for the death of a California family this past August seems more in tune with how a Japanese company usually handles criticism while recent press releases and video statements on its US site reveal the automaker’s combative nature.

So far, Toyota seems to be maintaining its lofty image in the US despite its recent problems. Yet, news hungry media folks and the company’s own petulance could soon undermine what Toyota has carefully built up over the years – a rock solid image.

Calling Mr. Toyoda

Perhaps Mr. Toyoda should have a frank discussion with his American PR team by coming up with a plan where Toyota acknowledges its mistakes, offers real and lasting fixes, and avoids defensive public relations battles that it simply cannot win.

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9 Responses to “Rock Solid No More: Toyota’s Image Takes A Hit”

  1. Truck DealersNo Gravatar Says:

    Toyota has already started the slip towards GM-hood over the past few years – figuring that people will buy Camrys even if the interiors aren’t as nice as they used to be. They also have to be wary that Lexus doesn’t move to far down market, or Toyota too far up, or they’ll have created two full car lines in competition with each other.

  2. MattKNo Gravatar Says:

    TD, you make a good point.

    In order to move up to the top fast, why not cut corners? Quality seems to be still there other than rusting issues and lack of answers about the Runaway Toyota problem.

    Yet, if the interiors look cheap and competitors such as the Hyundai Sonata, Ford Fusion, and Chevy Malibu are building nicer looking cars, then sales of the Camry and other models may continue to drop.

  3. LD JacksonNo Gravatar Says:

    Good article, Matt. I work at an automobile repair shop and some of the best made cars we see are Toyota or Lexus vehicles. Our service manager has both his wife and his daughter driving a Toyota Camry. While I like to be able to drive a domestic vehicle, the quality of Toyota vehicles can not be denied. To see that quality suffer such a slide is truly tragic, not only for the company, but also for the American driver.

  4. fargo used carsNo Gravatar Says:

    I’ll never stop driving a Camry. I drove my Toyota Camry till it hit 221,000 miles and was still going strong.

  5. Tom McDonaldNo Gravatar Says:

    You can add rusted out engine cradle cross members to the list too on the Rav4 and Toyota’s answer is…

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