Category: Customer Relations

By on February 12, 2010

Click to enrage … we mean, enlarge

According to the MSM and many on-line pundits, the NHTSA has been drowning in customer complaints about Toyotas for years. Supposedly, the warnings were thrown in the wind.

Edmunds went through the pain of sifting through NHTSA’s complaint database from 2001 through Feb. 3, 2010 . After the counting was done, Edmunds came to a startling conclusion: The deluge of complaints is a myth, to put it charitably. “Fabrication” would be a better word. Amongst 20 brands, “Toyota ranks 17th among automakers in the overall number of complaints per vehicle sold,” says Edmunds. NHTSA’s own data shows: Only drivers of Mercedes Benz, Porsches and Smarts have less to kvetch than Toyota owners. Read More >

By on February 10, 2010

Toyota’s president Akio Toyoda was already getting ready to “visit the United States over massive recalls of its vehicles,” reported the Nikkei [sub]. Japan’s transport minister Seiji Maehara told U.S. Ambassador to Japan John Roos that Toyoda would be dispatched to DC. There, he would be ready to  “explain the recall problems to the U.S. Congress if asked.” Read More >

By on February 10, 2010

Every year, Japan’s Ministry of Economy, Trade and Industry hands out prizes for products it regards as the pinnacle of energy-efficiency and eco-friendliness. This year, Toyota’s Prius was chosen as the recipient of the grand prize.

Last Monday, Toyota said “enryo shimasu” (no thanks) to the Ministry, and refused to accept the governmental honors, an industry ministry official disclosed today to the Nikkei [sub]. Read More >

By on February 10, 2010

Honda said it will recall another roughly 378,000 vehicles in the U.S. to fix potentially faulty airbag systems that are linked to at least one known fatality and 11 injuries in the U.S., says the Nikkei [sub].

That brings the number of airbag-related recalled Honda and Acura models to more than 826,000. Honda said some airbags in its older vehicles deploy with too much pressure, and send metal fragments flying into the car. Read More >

By on February 9, 2010


Reuters reports that Toyota has informed the NHTSA that it will voluntarily recall over 7,000 2010 Camry four-cylinder models. According to a Toyota document sent to dealers:

2010 Camrys equipped with a 4-cylinder engine might have a shorter-than-required power steering pressure hose in the engine compartment. That could deplete the brake fluid, increasing the brake pedal stroke and making it more difficult and requiring more time to stop the vehicle

For the record, Ford would have just called this a “Customer Satisfaction Program.”

By on February 9, 2010

The Japanese government is getting increasingly worried that the Toyota debacle might turn into a worldwide backlash against Japanese cars, or even all Japanese products. As the world’s 4th largest export nation, Japan has a lot to worry about.

Today, large parts of the Japanese cabinet came down hard on Toyota, says the Nikkei [sub]. Read More >

By on February 9, 2010

The legal angle to the Toyota recall story has been a source of constant amusement, from an early attempt to prevent Toyota from enacting its gas pedal fix, to news today [via Reuters] that at least 30 class-action suits have been filed since the recall began. “This is going to a little cottage industry all of its own,” says Matt Cairns of DRI, the Voice of the Defense Bar, the largest U.S. civil defense attorney association.
Read More >

By on February 9, 2010

It’s the software, stupid. At a press conference at 3:30 pm Japanese time, Toyota came clean and announced that it will recall 223,068 hybrid vehicles in Japan, including its latest Prius model and three other models–the Sai, the Lexus HS250h and the Prius Plug-In Hybrid, says the Nikkei [sub]. They will get a re-flash of the brake software.  Worldwide recalls of affected models will follow. This ends – for now – weeks of waffling over the latest in a series of Toyota problems.

The recall will start Wednesday. A total of 199,666 Prius vehicles manufactured between April 20, 2009 and Jan. 27 of this year will receive new ABS software. Read More >

By on February 8, 2010

As the search for clues to what went wrong with Toyota’s much-vaunted quality rolls on, Automotive News [sub] has discovered that Toyota discontinued top-level quality-focused meetings shortly after Akio Toyoda took over early last year. The “Customer First” quality meetings were instituted under Toyoda’s predecessor Katsuake Watanabe as a response to Toyota’s 2005 recalls. A Toyota executive involved with quality decisions at the time tells AN [sub] that the Watanabe-headed committee simply disappeared over time:

We saw that the whole company and each division understood what they need to do in terms of Customer First operation. It became a daily activity rather than a special activity. So they didn’t need an executive to instruct them. Because Customer First is something like a philosophy, Customer First activities themselves are continuing. But we don’t have an official organization like a committee.

Ironically, Toyoda used the term “Customer First” repeatedly in his comments to the Japanese press last week. How he squares that emphasis with the decision to cut an executive-level committee named for that phrase remains very much to be seen. Meanwhile, his motivations for cutting the program couldn’t be more obvious, as the slow-and-safe approach added months to vehicle development time.

By on February 7, 2010

Readers of the Nikkei [sub] were greeted this morning with the purported news that by the end of this month, Toyota “is expected” to recall its Sai and Lexus HS250h hybrids, which use the same braking system as the Prius hybrid. Furthermore, “the company is believed to have decided” to recall the current Prius, “and is expected” to notify the Transport Ministry of the plan early this week. Read More >

By on February 7, 2010

After piles of books have been written about the „Toyota Way,“ this round of recalls will have a permanent place in the annals of how to completely NSFW-up crisis management. The epicenter of the disaster at Toyota is not in the pedal dept., it is not in the software development dept., it is in the Public Relations Department in Toyota City. Or possibly, right at the top.

Last Friday evening, Toyota trotted out their CEO and founder’s grandson Akio Toyoda to address the complaints about Prius brakes. Toyoda said nothing of substance. What irked the public, and what became instant fuel to the already raging fire, was that Akio Toyoda refused to address the fact that Toyota had changed the Prius software, and changed the braking hardware in January, for cars in production. People wanted to know what happens with the cars they had already bought. Akio Toyoda left his customers in a lurch. Answering in very bad English instead through an interpreter made matters worse.

A day later, Reuters wrote that Toyota will recall the Prius “in the next few days.” Who was the source? A Toyota spokesperson? Nah. A “person close to the matter?” Nope. The source was a Toyota car dealer. “Toyota officials were not immediately available to comment.”

Today, the Nikkei [sub] writes that Toyota “has decided to recall and repair free of charge the latest model of its Prius hybrid sold in the domestic market due to complaints over brake problems.” And who’s the source? A Toyota spokesperson? Nah. Read More >

By on February 5, 2010

Oy, will they get slaughtered for that: So Toyota Prez. Akio Toyoda met the press late in the Japanese evening in Nagoya. And what did he say? Basically nothing. He said he “ordered swift action” to get a grip on the reported brake problems of the (in Japan) wildly popular Prius hybrid. But he didn’t say anything else. Recall? Shirimasen. (I don’t know.) Free repair if customer requests it? Shirimasen. Computer reflash? Shirimasen. Does Toyota know what’s going on? Shirimasen. Apparently, LaHood’s threat of bodily harm was lost in translation. Read More >

By on February 5, 2010

Toyota’s President Akio Toyoda will do something highly unusual tonight: The usually reclusive CEO will meet the press in Nagoya on Friday night at 9 p.m. Japanese time to discuss product quality, says the Nikkei [sub]. Toyoda won’t face the Fourth Estate all alone. Executive Vice President Shinichi Sasaki will also attend, and hopefully deflect the worst.

The press conference is not for Japanese consumption. Friday night at 9, most papers are put to bed, and the evening news are over. The meeting is for U.S. consumption. Friday night at 9 in Nagoya is 7 a.m. in New York. Read More >

By on February 4, 2010

Sergio Marchionne’s misguided obsession with the alleged brand equity of his recently-acquired Chrysler Group marques has deepened, as Chrysler, Dodge and Jeep launched new branded merchandise today [hilarious press release here]. The funniest part of the whole cross-branding effort is the very idea that significant portions of the population want their day-to-day goods slathered with Chrysler Group brand names. The second funniest? The products themselves. The Chrysler Collection features such “luxury gifts” as an $11.95 leather calculator, a $199.95 mahogany humidor, and a $21.95 mini umbrella, all tagged with Chrysler’s new Aston-alike logo and doubtless finished in the same fine materials as the Sebring’s interior. If Davos had a Wal-Mart, this is what they’d sell.

Read More >

By on February 4, 2010

Complaints about allegedly faulty Prius brakes are growing by the minute. This morning’s Nikkei reports that in addition to the 14 complaints received by  Japan’s Transport Ministry, dealers in Japan are handling 77. Today, Toyota conceded that the brakes can get confused on icy roads. Read More >

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