Question

What can be a recommended solution for the company Toyota to their damages reputation caused by recalls?

Answer 1

It has been observed that many automobile manufacturers are recalling vehicles to take preventive actions against faulty parts and components. Toyota has been no stranger to this. They have also began recalling few of their models to do the inspections and provide upgrades wherever necessary. Such cases will always affect the customer relationship and cause dissatisfaction among the customers.

To reduce the dissent among the customers, Toyota can use the following:

• Have honest open letter apology to customers that there has been an issue and same is being sorted out as soon as possible. Having an open conversation with the customers will always keep a good relationship with the customers.

• Be transparent about the solution and the cause of the issue. Customers will find the problems and they will complain causing huge dissatisfaction in their minds. If Toyota can proactively take this up with the customers and share the problem as well as solution, customers will be far more receptive for the same.

• Do free checkups for a certain period of time. Every vehicle owner will want to do preventive checkup at defined intervals to ensure that all components are working fine and no inherent issues are present in the vehicle. If Toyota can give free checkups every month then customers will have high positive feedback regarding such initiative.

• Have vehicle pick up and drop facilities at all locations to ensure minimal dissatisfaction in terms of logistics for vehicle owner.

Toyota can use preventive checkups during the design and finalization stage itself before rolling out cars to retailers for selling. Few activities they can do are:

• Ensure design integrity is maintained at all stages and no compromises have been done

• Never skip a test- be it for part, components, or miles covered

• Ensure the supply chain is proper and all suppliers provide authentic well tested parts

• Ensure suppliers history and performance is monitored and proper actions are taken

• Ensure all rules and regulations and latest changes are being followed