Toyota Recall Prompts Company to Release Public Relations TV Spot

Toyota Motor Corporation is in trouble. For years the Japanese company has repeatedly used the banner of Quality in the marketing of their vehicles. The recent massive recalls that have plagued the company have eroded the association of the name Toyota with the description "quality". Eleven vehicles including the top selling Camry, Corolla, and Sienna models have been recalled for floor mat and/or accelerator pedal problems that are resulting in uncontrolled acceleration of the vehicles. To add to the woes of Toyota, yet another recall is in the works for the popular hybrid Prius due to braking problems. The Japanese government has ordered Toyota to investigate the 2010 Prius braking system, and the United States National Highway Traffic Safety Administration has begun its own look at the Prius's brakes as well.

Enter the television ad, now playing on network TV. The ad begins with a look back at a black and white shot of a Toyota dealership years ago. The voice over proclaims "over 50 years" of providing quality vehicles. Next we see an old grainy clip of a mother and kids getting into a sedan. Then you are shown new clips of workers in a factory, examining a new vehicle. Voice over now admits that the company has not lived up to the "standards" that customers have "come to expect". Quite the understatement is given here. The apology given, the commitment to return to quality is then espoused. This slick TV ad is a clever public relations plea to give Toyota a second chance. View the ad video here.

News media in the United States has begun to report consumer attitudes towards Toyota. Man on the street type interviews are being aired, with current owners of Toyota vehicles declaring that they will never own a Toyota again. The reasons for the Toyota recalls are very serious. Sticking accelerator pedals and brake problems are most definitely real safety concerns. The public knows this, and is justifiably concerned. Toyota official response has been criticized as being too little and too late. A crisis in consumer confidence has developed, leading to a massive erosion of the public's trust in the company.

Wall Street has also lost confidence in Toyota Motors Corporation. Since the recalls were announced Toyota shares (TM) have fallen 20%, which equals close to $30 billion in market capitalization. On February 3^rd U.S. Transportation Secretary Ray LaHood, while testifying before the House appropriations committee, made the statement that owners of recalled Toyota vehicles should stop driving the vehicle. This statement, later retracted, rippled through the stock market and led to a 5% drop in the price that day. Click here for Toyota Stock Chart .

Toyota is facing a long, hard climb back up the ladder to trust within the minds of consumers worldwide. The assumption on the street that Toyota produces superior quality vehicles may be a thing of the past. Only time will tell how well Toyota handles its climb back up the ladder of consumer confidence.

Sources:
Personal experience

Recall timeline