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Toyota recalls case study

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Using the case study attached:

1. Did Toyota handle its recalls ethically? Why and why not?
2. What changes would you recommend to Toyota's crisis management approach? Why?
3. Do you think that Mr. Toyoda's testimony on February 24, 2010 was effective? How might it be improved?
4. Toyota did not immediately disclose that each car carried an airplane-style "black box" that recorded details on how the car was functioning. Was this timing appropriate?
5. What possible reasons could account for Toyota's delay in advising the NHTSA of the problems known on September 29, 2009?
6. Can Toyota recover from these recall problems? If so, how long will that take? What would Toyota have to do to recover fully?

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Solution Summary

The Solution reviews the Toyota case study and examines if the recalls were handled ethically, what changes should be implemented to the crisis management approach, and how Toyota could recover from the problems related with the recall.

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1. Did Toyota handle its recalls ethically? Why and why not?

This question is subjective to interpretation as there are two different opinions on how the company handled these recalls wherein many believe that the company failed to act upon known problems, and even after fatalities began to be reported, the company still is alleged to have dragged their feet in regard to fixing these problems. Therefore, this case is similar to the Ford Pinto case in my view wherein Ford determined how much money it would cost to recall the faulty products in relation to how much it would cost to pay settlements for wrongful deaths. It's corporate greed run amok and entirely unethical as Toyota could have saved lives had they not allowed their faulty vehicles to remain on the market longer than necessary after they were aware of these problems.

2. What changes would you recommend to Toyota's crisis management approach? Why?

I would ensure that individuals within different markets such as America, would be given the ability to immediately ...

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  • MS, Prairie View A&M University
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