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Wednesday, February 10, 2010

Toyota Crisis Memo

Memo Group: Greg Maehara, Drew Kootman, Dominic Demark, Kevin Fanelli, Benyamin Widjojo, and Erica Hollern

To: CEO Toyota

From: The Director of Crisis Management

Date: February 5, 2010

RE: Toyota Recall Accelerator, Pedal sticking


Hello,

Due to recent problems regarding the malfunction of the gas pedal in the following Toyota models, 2005-2010 Avalon, 2009-2010 RAV4, 2007-2010 Camry, 2008-2010 Sequoia, 2009-2010 Corolla, 2005-2010 Tacoma, 2008-2010 Highlander, 2007-2010 Tundra, 2009-2010 Matrix, 2009-2010 VENZA, and 2004-2009 Prius, we are planning on recalling and replacing the pedal and other malfunctioning parts.

The following steps are being taken to ensure customer satisfaction and increase our brand image. The first action that we will be taking is holding a press conference, addressing the issue and what we plan to do about it. In this conference we will be apologizing to the public for the error in production, while assuring them that we will be doing everything in our power to rectify this malfunction. We will be stopping production so that we can focus on fixing the current problem. This will also give us the opportunity to understand what is going wrong during the production of these vehicles. The next step will be to contact our customers who have bought the models that are listed above, offering to bring their car in to be fixed, as well as, giving out loaner cars in the mean time.

In order to increase our brand image, we will be making a commercial that explains exactly what is going on to the general public, this should eliminate any rumors that could harm our image of reliability and loyalty. To help keep in front of the media we will be setting up a blog where owners can log on and ask questions and get immediate answers in return. We will also continue to hold press conferences to keep the public informed on how the problem is going.

Once we start production again our plan is to not produce any cars with malfunctions, and to ensure this we will be running more tests on them at every step of the production line. There will also be a 30 day money back guarantee for new buyers.

Sincerely your risk managers,

Greg Maehara

Drew Kootman

Dominic Demark

Kevin Fanelli

Benyamin Widjojo

Erica Hollern

2 comments:

  1. Lauren Garcia, Christina Rowley,Marci O'Donnell,Matthew Rocco,Jimmy Tonga, M Matsumoto

    To: CEO Toyota
    From: The Director of Crisis Management
    Date: February 7th, 2010
    Re: Toyota Recall- Accelerator Pedals

    It has come to our attention that customers are experiencing problems with the design of the gas pedals on the new model of cars. As a company that provides 9.7 million cars globally each year, we are committed to providing our full attention in resolving this issue. At Toyota safety and innovation are key pillars for our success and we must take every precaution in maintaining our ideals. To continue with our high level of standards we suggest that the company take action in the following suits:
    Press Conference - The President should address the community and make a statement that Toyota is aware of the issue and that we are doing everything we possibly can to fix and prevent this from happening in the future.
    · Develop a Safety Update Website- It would allow customers to continually check-up on the latest updates and advances for the gas pedal. The website will provide the number for a 24 hour service hotline where customers can talk to a representative about their questions and concerns. It would also offer customers the option of receiving emails about current updates and information on this process.
    · Notify the Dealerships- The dealerships should be notified immediately of the situation regarding the gas pedals and be advised to keep at least one technician on duty at all hours. We want to be fully accessible to customers at all hours of the day. We will be shipping special parts that will need to be installed if the car is not up to Toyota Safety Requirements. We will be notifying all (Model) owners to come into the dealership to have their vehicles inspected. We suggest that additional personnel be on duty and certain members delegated to maintain positive customer service.
    · Recall- We will send out a letter to notify the owners of all involved (Models) of the potential problem and request that these owners t bring their vehicles in to the nearest dealership for a safety inspection. If we discover a problem we will take care of it free of charge because safety is our main priority.
    · Yearly Safety Checks- We would like to offer customers a free Car inspection every year while they maintain ownership of their vehicle as a way to compensate them for the inconvenience. Not only would we check on the gas pedal with these inspections but we would also be able to let them know if it was time to get their oil changed, tires rotated, etc.
    The Toyota (Models) that are involved in this recall are the 2005-2010 Avalon, 2009-2010 RAV4, 2007-2010 Camry, 2008-2010 Sequoia, 2009-2010 Corolla, 2005-2010 Tacoma, 2008-2010 Highlander, 2007-2010 Tundra, 2009-2010 Matrix, 2009-2010 VENZA, and the 2004-2009 Prius.

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  2. Attached President's Statement:



    We suggest the following guidelines for your press statement:
    - Introduce yourself and the position you hold with Toyota.
    - Toyota appreciates the opportunity to provide the customers with information about how Toyota manages to recall the Toyota models which include the faulty accelerator that offer potential harm to the consumers.
    - Make a note that this early communication will help ensure the orderly and prompt correction to the problem.

    - Explain sympathy for those who have been negatively affected by the faulty gas pedal design and lead to a strong statement about how customers have always been the number one stakeholders and nothing will ever be done to purposely harm them.

    - It is our goal to produce safe and efficient cars , however, when a product presents a public safety issue, we believe it is effective to recall the product to protect the public.
    - The recall will include the addition of the accelerator stabilizing rod on each model that is brought in. The accelerator stabilizing rod guarantees the future safety of our consumers as Toyota would not install any device to further harm them.
    - For the safety of consumers and their families and friends, we strongly urge them to take their cars to get service at their local Toyota dealers. State that there is a time limit to the recall and again to strongly urge the public to take the car in for the free accelerator fix to ensure their safety.
    - Throughout the recall we will ensure satisfactory performance. We have opened up a safety line and website for all Toyota models.
    - State that every week there will be a new press conference statement released to the public, updating them on any new developments and current situations which will also be posted on the new website.

    - Let them know of the compensation package we will be giving them, which includes free yearly safety checks for the time they own the car.
    - The fact that this recall has been put into motion, our experience at Toyota highlights the need to enhance production line monitoring and regulations, as well redesign new and very strict design tests for any new products Toyota will release.
    - Toyota is working hard to ensure the safety of our customers all over the world and thanks you for the opportunity to discuss Toyota’s recall.
    - Conclude with the answering of any questions.
    - End with a reminder that there will be another statement made next week to update customers.

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