EDITORIAL: Yes, Toyota fumbled crisis management, but we have great hopes for its success

Friday February 26, 2010
 
 

Much has been made of the secretive, defensive proclivities of Japanese culture that may have precipitated some of Toyota’s mishandling of deadly problems involving its vehicles. That culture also may have prompted the obviously heartfelt contrition displayed by Toyota President Akio Toyoda during this week’s volatile congressional hearings.

Certainly Toyoda’s appearance before Congress is an iconic moment — and one that ought to prompt reflection by Americans, especially in view of disturbing trends of xenophobia that occasionally erupt in our own culture. Can we imagine, for instance, U.S. auto executives, hat in hand, traveling overseas to offer apologies and vows to do better to the angry parliaments of other lands?

No one disputes Toyota executives dithered when they should have acted. Their failure to move on complaints and accidents that some blame on the cars, not the drivers, is a far cry from their actions just two decades ago when, faced with complaints about the Lexus LS400, the company swung right into gear, plunging dealers into crash courses on how to make fixes and recalling thousands of vehicles.

On Wednesday, Toyoda apologized for company failures, even while he acknowledged that engineers are still working feverishly to determine what caused acceleration problems with potentially deadly results.

Our government should not be too quick to lambaste Toyota when it has a huge financial stake of its own in General Motors. And the U.S. Department of Transportation clearly faltered in its watchdog role. It’s also worth noting that Toyota has largely resisted the layoffs that have struck the auto industry.

To our thinking, Toyota is very much a U.S. auto company. According to the Financial Times, it has more than a dozen assembly and parts plants across the United States. The company estimates it has a direct investment here to the tune of $17 billion and spends $29 billion annually on parts and services from U.S. suppliers. When you add in the dealerships, Toyota is responsible for 172,000 American jobs.

Yes, Toyota could have been far more effective in communicating recently that it stands by, ready to look at any of the 8.5 million vehicles worldwide under company recall. In some respects, it seems to have limited itself in how best to get word out, possibly by assuming such notices are bad for business.

That’s shortsighted. We know Toyota drivers to be fiercely loyal. And while Toyota has been sluggish to recognize the grim significance of its problems, the company has redoubled efforts to service customers. We wish this remarkable company success in its mission, especially considering how deeply it has invested in America.

 

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