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Interpretation Of Corporate Public Relationship Crisis A Review Of Toyota Recall Event The background of Toyota s recall crisis At beginning of late January 2010, due to the accelerator pedal and other problems, Toyota announced that recalled nearly 4.45 million cars from the United States, Canada, Europe and China, coupled with Camry.Prius and other models ,a total of 4.2 million cars were recalled from the U.S. market in November 2009. Toyotas problematic vehicles exceeded seven million, far exceeded the level of its global sales last year.Concise analysisToyota recall event has caused a sensation in the world .As far as its crisis public relations,the whole course mingled hope and fear.First to say Hope. Toyota is not the only one which happen recall.Such as Ford.In 2006,Ford recalled 7.9 million problematic cars .And in the past 10 years,Ford has recalled 14.9 million cars for the same reason.As well as the General Motors.G.M recalled of 6.7 million and 5.8 million cars in 1971 and 1981 respectively. Volkswagen and Honda also have a large number of recall records in 1972 and 1995 .Both of their number were 3.7 million. This shows the number of problematic cars that Toyota recalled in present situation is far from being largest. When an enterprise can handle the crisis PR properly ,it will not only turning tide but also can further enhance its brand image.It now appears that no matter Toyotas image is negative or positive ,at least,Toyota is succeed attracting publics attention. Second to sayfear.Since 2009,Toyota continual recalls has greatly stimulated the nerves of global consumers,expecially the recall of Lexus.As we all know,Toyata is most proud of Lsxus.The myth of Toyota productsquality is widely questioned.In a serious of external explanation ,Toyota tried to deny the relationship between the quality problems and its cost.But it was really hard to believe.So its executives had to make one after another apology to public.The first 10 months of 2009,Toyota has already recalled problematic cars from the global market about 9 times,involving about 6.25million cars.In China market,from July 2004 to August 2009,there were a total of 24 recalls ,involving nearly 1.2 million vehicles.However,there was only 1.3 million Toyota vehicles sold in China market at same period.Because of Toyota frequent and large quantities recall,Toyota had to meet huge losses ,decline in sales and its high quality reputation is at edge.Toyota plunged into an unprecedented crisis. Public relations problem-Crisis management Since 1970,the Japanese automotive industry depend on its high-tec and high-quality products has enjoyed a high reputation in the world.But because of its recall crisis ,the brand appeal power -the greatest wealth to Toyota is currently suffering heavy losses,if not handled properly,Toyota,even the whole Japanese automotive industry may lose this advantage.As far as the Toyota recall crisis response,measures ran contrary to the six basic principles of crisis management. Six Reasons 1 Forecast.Because Toyota underestimated the revolution and development of recall crisis,so the situation rapidly deteriorating.2 Fast.When the product quality problems happened,the public were eager to know reason.But Toyotas response was so slowly,especially its executives,they did nothing at the beginning of crisis.So Toyota lost best opportunity.3 Fact.When Prius was exposed brake failures.Toyotas explanation was so unthinkable that it couldnt convince customers.In fact,making mistake is not terrible,lying to public is more terrible and unforgivable.4 Face.At the beginning of the crisis,Toyota disregarded the safety of customers and blinded its responsibility.Consumers couldt fell the sincerity from Toyota before Akio Toyoyda s continuous apology.Its decades-accumulated credibility almost destroyed.5 Frank.Toyota attempted to conceal the fact after they found problems.And they also attempted to get ride of its responsibility by sophistry.Their performance,significantly exposed the lack of social responsibility and ethics.It seriously poisoned the atmosphere and environment of crisis management.So the crisis management process out of control.6 Flexible.Just because of Toyotas improper handling of crisis,which led to the upgrading and transformation of the crisis itself,from the product quality crisis transferred to the brand crisis,from Toyota crisis to the Japanese auto industry,even the crisis of whole Japanese manufacturing credibility. The current crisis measures The public relations expert TuGuangJin said When the company is involved of crisis,it has nothing to do but provide the fact and expression of attitude.It means the enterprise should answer the question whether it is our fault or not at first.If the answer is Yes,then the enterprise should take measures to clarify the facts,express apology and improve corporate action. Now,the principal crisis which Toyota is facing on can be devided into two aspects.One is its product quality crisis,another is its questionable credibility and image.The former ,in a sense,it is crisis management,and it can be solved by optimizing management.The later is a public relations crisis,it can be solved through timely and effective crisis communication management.Professor Tu said Public relations can deal with the problem of communication and dialogue,but it is not a panacea.The crucial point to enterprise is its products and services must cater for all customers. Public relations and crisis management can not replace its internal and external management.Akio Toyoda also declared at Beijing press conference Toyota should consider customers benefits first.It seemed that after experienced passive and lag trouble ,Toyota finally recognized the company should not only reaffirm its previous corporate philosophy but also need to recalibrate its corporate behaviour.Because the true meaning of public relations is meet the interests of the enterprise ,the public and the society. Short ConclusionLets review the course of event. In a word, Toyotas crisis coping strategies incl
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