A reputation for quality is a huge asset for any manufacturer but, as Toyota has found to its cost, it takes years to build and only moments to lose. And when you add in a failure to take a fast and zero tolerance approach to any threat to customer safety, you risk gaining a very unwelcome reputational replacement.
Unless Toyota wants to risk being seen as cavalier about the safety of its customers it will need to respond fast with complete transparency and the rapid firing of anyone involved in the delay of international warnings and product recalls.
This will need to be followed up, and fast, with a well communicated and financed programme to ensure reparation to anyone who has suffered and to improve future product safety and recall processes.
Toyota has failed to deliver a number of the actions essential to surviving a reputational crisis. The company was slow to respond and it failed to understand that any problem that threatens public safety will prompt strong action from third parties – in this case the National Highway Traffic Safety Administration. You need to act before you are made to and to go further than you probably need to. And the top man must take public ownership of the problem from the outset.
Product recalls are common in manufacturing, and the car industry is no exception. They don’t have to be a disaster. But fail to act fast, even if this makes the remedy more costly, and you will pay a heavy price for decades to come. No-one will forgive a company seen to put money and short term discomfort ahead of safety.