Question: 1 Did Toyota handle its recalls ethically Why and why

1. Did Toyota handle its recalls ethically? Why and why not?
2. What changes would you recommend to Toyota’s crisis management approach? Why?
3. Do you think that Mr. Toyoda’s testimony on February 24, 2010 was effective? How might it be improved?
4. Toyota did not immediately disclose that each car carried an airplane-style “black box” that recorded details on how the car was functioning. Was this timing appropriate?
5. What possible reasons could account for Toyota’s delay in advising the NHTSA of the problems known on September 29, 2009?
6. Can Toyota recover from these recall problems? If so, how long will that take? What would Toyota have to do to recover fully?

In 2000, Toyota had a strong and growing reputation for quality. Its engineering excellence was peaking with the worldwide introduction of the first successful commercially available hybrid, the Prius, in 2001. But, by 2010, over 10 million individual recalls2—including multiple recalls of some models—had left Toyota’s reputation in tatters, allowing other manufacturers to regain their momentum and even the leadership in sales. Ultimately, Akio Toyoda, the President of Toyota Motor Corporation, journeyed from Japan to testify before the U.S. House Oversight and Government Reform Committee on February 24, 2010. How this change of fortune transpired is a complex and interesting story.

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