Safety Woes Hurt Toyota Image
The problem with faulty gas pedals in its cars and trucks is rare, Toyota says, and car owners are unlikely to experience any trouble. But Toyota's reputation is another matter, The Associated Press reported.
Crisis management experts say just how far Toyota's image tumbles depends on how quickly it can fix the problems and how well it communicates with hundreds of thousands of loyal customers.
They also say that Toyota's growth has outpaced its management structure. The company didn't have in place the mechanisms to identify and deal with the problems before they exploded into two giant recalls, factory shutdowns and instructions to dealers to stop selling eight models.
Toyota Motor Corp. rode a reputation for reliability to become the world's top car maker. For more than 30 years, it won customers and market share from General Motors Co., Chrysler Group LLC and Ford Motor Co. by building high-quality cars such as the midsize Camry and compact Corolla.
Toyota said late Tuesday it would halt sales of some of its top-selling models, including Camry and Corolla, to fix gas pedals that could stick and cause unintended acceleration. Last week, Toyota issued a recall affecting 2.3 million vehicles.
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