Today’s Wall Street Journal carried a front-page piece on Toyota’s “nightmare come true” for its new president, Akio Toyoda, who took over the company his grandfather founded in 1937. The WSJ piece, as well as a companion story, recounts unintended-acceleration accidents, some fatal, attributed to possible manufacturing defects in several Toyota models. The company has now halted sales and may expand the recall as it fights to salvage its hard-earned reputation for quality and safety.
A second companion story focused on Toyota owners who are standing by the company. As one loyal customer said, “There’s not another company in the world that would stop production and stop selling to get it right.”
Against that backdrop, it was incredible to me to read the comments from two of Toyota’s spokespersons in today’s Journal.
1) “Toyota spokesman Mike Michels said Wednesday that the sales halt was required by law after the recall. “It’s not a voluntary thing,” he said.”
Apparently, Toyota is required by law to stop selling the vehicles without a fix for the issue. But rather than to state that “they made us do it,” the company should have stated that it is doing everything possible to ensure the safety of its customers and is working to quickly to correct the problem. You do the right thing, period. If it’s also the legally required thing, so be it.
2) ”A senior Toyota executive reached Wednesday declined to say how long Toyota had known about possible defects that may have caused its vehicles to accelerate unintentionally. “That [time frame] is a very important point, and it could become a very difficult problem for us legally,” he said.”
In crisis situations, any statements that are made become part of the record, from both a historical and a legal perspective. You must have the relevant facts before making comments to media. The story notes that the senior executive “declined to say how long Toyota had known,” but he went on to speculate. Even worse, his comment implied that the company may have known about this all along. If you’re going to decline comment, decline comment. Let the attorneys handle the legal issues.
In fairness, this is probably the worst crisis ever to hit Toyota in its 73-year history, and no crisis situation is ever handled perfectly. But Crisis Communication 101 says there are things you should always do, and things you should never do. Here are a few:
Always: 1) take responsibility, 2) protect public safety and health, 3) be truthful and transparent, and 4) tell the public what you are doing to fix the problem.
Never: 1) speak without knowing the facts, 2) speculate, 3) answer hypothetical questions, or 4) point fingers.
Personally, I think Toyota is a great brand — I own a Camry, and it’s the best car I’ve ever had. But Toyota would do well to brush up on Crisis Comm 101 before it’s too late — if it isn’t already.