Toyota Memo

Justine Haga, Stephen Mariucci, Matt Parker, Anthony Vieira, Kelly Hausséguy, Annie Harrison

To: CEO Toyota

From Director Crisis Management

Date: February 5^th, 2010

RE: Toyota Recall Accelerator pads 

It has come to our attention that many of our products contain defective accelerator pedals. There are several aspects that we need to address in order to be prepared for the public’s imminent backlash. We propose the following crisis management plan in order to sustain our company’s reputation for high quality and ingenuity.

First and foremost we need to be truthful, take an apologetic position, and assume all responsibility.  The clearer we are about the problem, the more receptive the public will be. We also need to issue information regarding a massive recall and let the general public know in detail how we are being proactive in fixing this problem.

           

In order to manage the media we will use various outlets such as twitter page updates, cellular phone update applications, as well as release a commercial about our company’s dedication to safety. We should also implement a permanent Toyota support website dedicated to recall information. This website will also allow the customers to input their VIN number in order to determine if their vehicle has been recalled. Additionally, if the customer discovers that their vehicle has indeed been recalled, there will also be an application for them on the support site to input their zip code. This will allow the customer to find the nearest Toyota dealership that can make the repair as well as make real time appointments. Also, we will set up a toll free number with 24-hour customer assistance regarding recall information for those customers who do not have internet access.          

When customers come in to have the repair made, the following standards shall be upheld at every dealership: A step-by-step explanation of what the problem was as well as the details of the procedure. Also, a lifetime warranty should be implemented on the part replaced to ensure customer satisfaction. The mechanics must make sure that all customers’ questions are answered in full before leaving the dealership. It should also be made known that all of these repairs are covered 100% by Toyota.

In compliance with our duty to take full responsibility, we should also compensate all of those who have been the unfortunate victims of this defect. We need to release a separate public statement of apology to all of those immediately affected by these tragedies. It is important for our company to take a stance of full disclosure in order to retain customer loyalty. While these actions may seem outrageous and costly in the short run, the returns in the long run will be well worth it.

In order to prevent a similar situation from arising in the future, we should also do an internal investigation to find out how this problem went by unnoticed for so long, as well as introduce a more intensive control check. Above all, we must remember to be truthful.