Toyota's Quest to Regain It Reputaion, Market Share and Sales

1522 Words 7 Pages
Toyota’s Quest to Regain its Reputation, Market Share and Sales

After enjoying a top ten ranking on Ward’s Automotive list for most of 2009, Toyota Motor Corporation suffered a severe blow to its image of quality, safety and reliability. Toyota, the world’s largest automaker, has recalled 8.5 million vehicles worldwide as a result of runaway vehicles caused by defective gas pedals, faulty floor mats and braking software glitches. The company is desperately trying to salvage its reputation and regain market share and sales. Some considered this to be the biggest crisis in the auto industry since the bankruptcies of GM and Chrysler while others thought that Toyota would not be able to rebound from this problem in a short period of
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According to Bloomberg Business Week, “Toyota’s market capitalization has fallen to about 12.3 trillion yen ($136 billion) from about 12.9 trillion yen on September 15, when it notified U.S. dealers to inspect how floor mats are installed on models after four people were killed in an accident”. (Ohnsman, 2010) For years, Toyota’s success has been partially driven by loyal customers who repeatedly purchase only Toyota vehicles. Many experts thought that the company’s reputation for outstanding quality was finished. It was also assumed that people simply wouldn’t purchase any Toyota vehicle, especially after reported deaths. Subsequent to the reported deaths and massive recalls, the airways were flooded with reports that were not flattering to the automaker’s image. Consumer Reports announced its top picks in its annual auto issue and it didn’t include any Toyota models in key segments such as family sedans, small sport-utility vehicles and family SUVs. “Still, the magazine picked the Prius as best “green car” and the Lexus LS 460L as best car overall.” (White, 2010) Thus, it is vital for them to minimize bad publicity and somehow reassure consumers that Toyota vehicles are still safe and reliable while resolving the current

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