Toyota Recall Memo

Memo from:Alyssa Fares, Hanna Moxcey, Hannah Hickey, Fred Myrtle, Tamer Antabi, and Alex Worrell

To: CEO Toyota
From: Director of Crisis Management
Date: February 5th, 2010
Re: Toyota Recall
It has recently come to our attention that there is a severe problem in our automobiles. Over the past week there have been numerous accidents resulting in several deaths. It is apparent that our company is directly responsible for these deaths and we must take immediate action in order to save the lives of our customers, other drivers, and our reputation.
Immediate actions need to be taken in order to resolve this issue. The following steps are recommended:
a. Apologize immensely for any tragedies or inconveniences that our company may have caused
b. React quickly to identify the problem and hire specialists to work tirelessly on finding this problem
c. Halt all production until further notice and the problem is recognized
d. Televise a large press conference stating that there is a problem and engineers are working diligently to find a solution.
e. Do a swift sweep across all digital areas including blogs and company websites.
i. Utilize Facebook and Twitter
f. Develop a customer relations page on the website

Just as important as the technical corrections made are the reputational issues that must be handled. Our brand promise has always been quality and reliability offered at an affordable price. The current technical problems we have encountered now compromise the message that we send our customers. The most beneficial thing we can do as a company is to be upfront with our customers, with you as the C.E.O. at the forefront. It is my recommendation that you lead the press conference yourself in order to ensure the customers that this issue is of the upmost importance.

If immediate action is not taken, there are many consequences that our company may face. These consequences include:
1. Loss in consumer trust, loyalty and confidence
2. Negative publicity that will affect the public image
3. Bad Reputation
4. Huge loss in the market share
5. Official Investigations
6. Face many legal issues

Overall the loss in consumer trust will limit the amount of customers, lowering Toyota’s market share, leading to lower future sales and presumably future profit. If the proper steps are not taken then Toyota’s name may be forever linked to poor quality and minimal safety.

There are many possible legal issues facing our company. We could face large fines from Congress if they decide to use our company as an example to other companies. There are many threats of lawsuits made by customers who are afraid to drive their cars. We are facing allegations of withholding information from the public for too long. If our defect is proven to have caused injury to someone in a car accident, that is grounds for an Automobile Products Liability lawsuit and punitive damages may be available to those injured. We are liable for fixing these vehicles involved.

In order to avoid any further complications, it is imperative that we continually communicate with our customers. It necessary that we keep them updated on our progress and inform them with any new information that may arise. Take all precautions to make sure that this issue does not happen again.