Toyota Doesn't Get It

As more Toyota recalls mount, Toyota executives are making crucial public relations mistakes.  Akio Toyoda, Toyota Motor Corp.'s top official and grandson of the company's founder, brushed aside calls for him to appear personally in Washington DC to answer Congressional questions about the recalls.  Making matters worse, his body language was stiff and his tone appeared defensive (although he spoke in Japanese so who really knows.)  His press appearance this morning was a disaster. 

Instead of being perceived as a take charge leader who's willing to travel to Congress to take the heat and guarantee that defects concerning his cars will be resolved, he's sending an "underling", the head of Toyota's operations in North America.  I don't think it helped that he conducted the entire press gaggle in Japanese. 

Now, some will say I'm not being fair to the beleaguered Japanese leader. It's probably true that his head of North American operations is more qualified to speak to Congress about the nuts and bolts of the recalls.  It may also be true that Mr. Toyoda doesn't speak any English.  However, that's not the point.  As president of Toyota Corp., Toyoda's actions are symbolically and perceptually important.  In moments of crisis, leaders must inspire confidence by their actions and their words. 

A recent example may serve to illustrate my point.  After the State of the Union address, President Obama went to the Republican retreat and met with them to discuss how to resolve differences and overcome partisan rancor.  Was anything of substance accomplished by President Obama's actions?  Probably not.  However, the move signaled a willingness on the part of the Administration that the President was serious and believed in the importance of bipartisanship.

Similarly, if Mr. Toyoda wanted to instill consumer confidence in his product and assure Congress that he would ensure the recall issues would be resolved and that Toyota is a good, quality product, he should have gone to Washington.  He even could have thrown in a few words in English during today's presser.

Posted by Peter Schweitzer on February 17, 2010 12:00 am