See the story on the Wall Street Journal website: http://online.wsj.com/article/SB10001424052748704905604575027671658649384.html?mod=WSJ-business-LeadStoryCollection
First, full disclosure - I’m on my 2nd Toyota RAV4. First one, a 2001 went 250,000+ miles. I now own a “pre-owned 2003” that I bought because I didn’t want to pay the full price for the new model that was part of the recall.
Taking a stand
I’ll go on record in opposition to the auto analyst quoted in this article who called Toyota’s action “a disaster.” All I know is what I read in the papers, but based on that I believe that Toyota’s decision will put it in the ranks of companies like Tylenol’s parent, Johnson & Johnson, who recalled all Extra-Strength Tylenol nationwide following several deaths in the Chicago area. Interestingly, Tylenol’s current parent, McNeil Consumer Healthcare, took a less active stand in a product problem related situation last year and suffered for it.
A teachable moment
Toyota followed my first rule of issue management – A resolved issue is an asset. An unresolved issue is a liability. They identified their issue, analyzed their alternatives and took action.
Their action was a bold one that followed the military practice of “Standing Down”, a method used to correct an issue that has been identified as a serious problem.
We’ll have to stand by to evaluate the result. My guess is that their action will become a new “Tylenol” standard for responding in a crisis.
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