Recalls May Hamper Toyota, but Company Will Remain on Top

Recalls are familiar to all automakers. From brake failures, to faulty tires, to vehicles that catch on fire, some recalls are a given when you are an automaker. Recovering from recalls and the affect that they may have on any company can be difficult, but recovery is virtually inevitable. If you have watched even a fragment of news lately then you are well aware that Toyota Motor Company has been the subject of several recalls.

The recalls which affect millions of Toyota products range from faulty floor mats, to faulty accelerator pedals, and now a faulty braking system. Though the media focuses on the recalls has perhaps blown the issue out of proportion, Toyota will not falter much and will weather the storm as they have done before. The media's negative portrayal of the company has generated a lot of discussions about Toyota's ethics, but nearly all automakers have been subject to similar faults and accusations.

If we look back to one of the most prominent recalls in recent history you will quickly notice that companies recover despite the grief they must endure. The recall in question in the Ford Firestone recall. This recall went public including court proceedings, extensive media coverage, testing, blame, and finally accountability. Ford's image was tarnished and their ethics were questioned. Now, though little time has passed, most have forgotten about the recall and the company is once again thriving.

With an understanding that Toyota will fully recover from the impact of the recalls within the near future, let's examine how the recalls will actually impact the company.

1. Toyota's image is tarnished. An extensive marketing campaign will be utilized to address the recalls. Commercials will air on TV, public relations specialists will rebuild the company's image and the company will work to regain faith in the brand. This is a costly endeavor, but the company has no choice but to follow this route.

2. Buyers may show reluctance to buy Toyota products in the near future. until the recalls are sorted out and fully addressed, Toyota can expect a significant decrease in sales. The decreased sales will affect their bottom line and profit.

3. Brand loyalists will question their loyalty but ultimately stay with the company. Once assured that Toyota will correct any outlying issues, loyalist will continue to buy Toyota products.

4. Current Toyota owners may be skeptical that their vehicles are built well. Expect many to head to dealerships to question possible problems with their vehicles. Even owners of Toyota vehicles not affected by recalls still may question the build quality of their vehicles and expect additional assurances that their car or truck is properly built.

5. Potential buyers will be lost to other companies. In the immediate aftermath of the recalls some leery buyers will stay away from Toyota for awhile. This will likely result in increased sales for their closest competitor Honda. Over time, buyers will shift back to Toyota as the memories of the recalls fade.

Recalls are a part of the automotive world and affect all manufacturers. Some automakers are hit hard by recalls, but virtually all automakers have recovered from major recalls. The process of recovery may take years, but Toyota will remain on top in sales after memories of this current crop of recalls fades away.