Expect Toyota to rebound from its recall challenges of 2009 - 2010. Toyota, the world's top carmaker since 2008 is noted for a culture of innovation and quality. As the cultural values that invented the Prius prevails, and its quality focus is reinforced, Toyota will overcome challenges and keep its competitive position. Toyota already has followed the 3-D Leader’s five R’s model to rebound from product problems:
- Toyota Reestablished Trust. President, Akio Toyoda, grandson of founder, Kiichiro Toyoda, publicly said he “can’t begin to express remorse,” over the grave concern this has caused. “I apologize from the bottom of my heart for all the concern that we have given to so many of our customers."
- Toyota Recalled Problematic Products to mitigate further injuries, liabilities and damage. This impacted sales, which declined by almost 9% since the massive recalls began September 2009. Yet the sales drop was far less than analysts predicted.
- Toyota Replaced Defective (or Suspicious) Items in about 10 million vehicles recalled globally for faulty floor mats, sticky gas pedals, braking software glitches and steering malfunctions.
- Toyota is Reinventing Products with new features and safeguards that ensure the problem is fixed and never happens again. Recently Toyota unveiled the new 86 coupe to appeal to sports car lovers, and displayed a plug-in version of its best-selling Prius hybrid.
- Toyota Reported andPublicized recall fixes, and dealers stayed open all night to accommodate customers seeking them.
Toyota recently reported $1.2 billion quarterly profits as sales rose the first time in seven months, but must overcome supply chain disruptions from natural disasters and over 300 U.S. lawsuits because of alleged defects. Toyota attributes current profits in part to cost reductions. Its culture of efficiency, innovation and quality leads me to believe it will recapture market share.