TOYOTAL RECALL
Last week is was Apple, this week Toyota: wall-to-wall media coverage for a world super brand. Only this time, it's a disaster!
If you've missed the news about Toyota cars, let me remind you. The motor giant is recalling hundreds of thousands of vehicles after identifying a fault with accelerator pedals. The recall affects 185,865 cars in the UK covering the iQ, Yaris, Auris, Corolla, Verso and Avensis ranges.
This is without doubt a catastrophe for a company whose reputation is built on quality and safety. The long-term damage to image and profits will be huge.
The problem was magnified with the release of a family's shocking phone recording moments before their Lexus crashed near San Diego killing all passengers.
Enter the scene Toyota UK spokesperson Scott Brownlee. His job? To calm the markets and address fears that Toyota is not safe to drive.
Mr. Brownlee's handling of the affair, to date at least, should be commended. His response reads like a master class in crisis management.
Mr. Brownlee is available to the media 24/7 providing calm and reassuring advice. He takes time to respond to all media questions, hostile or otherwise, and informs Toyota owners of the necessary steps to take if they are concerned about their vehicle.
OK, we can expect logistical problems getting replacement parts manufactured and shipped to UK dealers and some people will be left without a car for a few days. Many will become impatient and the media will be quick to report set-backs, but at least Toyota will have been seen to be responding quickly and responsibly putting safety ahead of profits.
Ultimately, the loss of future sales and costs of the recall programme will hit company profits hard. They will recover for sure, and their professional handling of this crisis is the first step in that recovery. That said, we can safely predict, for the moment at least, Toyota's market dominance is now over.
*Crisis management top tips
I hope you never have to handle one, but if you do here are Paver Smith's top tips for handling a PR crisis:
1. TAKE CONTROL - trigger your PR crisis management plan - if you have one make sure you've rehearsed it recently; if you don't have one, get one now!
2. Buy yourself some time - don't get bounced into an interview before you're ready: issue a media holding statement
3. Set up customer AND media hotlines and operate them 24/7
4. Appoint a company spokesperson. Make sure he or she is competent, articulate, fully briefed, and available for media interviews 24/7
5. Admit to the problem and explain it immediately. Have your solution ready. Tell people exactly what steps are being taken to address the issue and what people should do if they are concerned
6. Update your website and other online channels with relevant information
7. Communicate with all other stakeholders (staff, suppliers, investors, partners etc) and keep them informed throughout the crisis
8. Prepare for a long day!
* Probably the best thing you can do right now, is appoint a
professional PR agency experienced in crisis management and work
with them to develop your crisis management plan. Call me on 0776
4677996 if you want some advice.
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