Can Toyoda save Toyota?
03.04.2010
In:
Public Relations
Some might say a similar performance was on tap last Wednesday morning when Toyota's chief executive, Akio Toyoda, is set to testify before the House oversight panel. The news media are setting high expectations for his testimony, saying his remarks are critical for confidence among current customers, the future of the brand and even the reputation of Japanese products overall. It's a high bar for any executive, but one that will be especially difficult for the Toyota chief executive for a number of reasons.
Mr. Toyoda will have handicaps that Mr. Woods did not face in his remarks. He'll be testifying before a congressional committee of representatives eager to build their reputation. They're tired of getting beaten up in the polls and want to demonstrate their value to the American public. No one can argue with taking Toyota to task on safety. Mr. Woods, by contrast, was able to orchestrate a tightly controlled environment for his remarks.
Mr. Toyoda has to consider the legal and financial ramifications of every word he utters. He has to strike a balance between responsibility and blame. It's doubtful he'll deviate much from what has been approved by a team of lawyers. While Mr. Toyoda has an obligation to the brand, his obligation to shareholders is of a higher order and that will dictate what he's able to say.
Finally, even with all the media coverage of the Toyota case, it's unlikely that the congressional appearance will attract the same audience as Mr. Woods. It seemed everyone stopped on Friday to watch. Sadly, we Americans are much more interested in athletes, infidelity and destructive addictions than in safety, engineering and jobs. So Toyota will have to continue to mount its own education campaign.
With all that's at stake for Toyota, I do hope that Mr. Toyoda learned from the mistakes of the US auto executives and arrives in a modest sedan instead of taking a private plane and limo. Maybe he should consider a Toyota pick-up. Those haven't been recalled, have they?
Karen Albritton shares her thoughts with Leslie Levine from AllBusiness.com on the PR nightmare becoming known as Toyotagate. That article can be accessed here .
