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Toyota
: A Case Study on the need for trust in the automotive industry
Page 1
Toyota Motor Corporation:
A case study on the need for investor and public trust
in the world‘s largest and most profitable automotive corporation
John GreenlawQuinnipiac UniversityInvestor/Corporate CommunicationsApril 26, 2010
Toyota
: A Case Study on the need for trust in the automotive industry
Page 2
Abstract
The reputation of the largest car manufacturer in the world has been tested in a crisisinvolving an overwhelming number of recalled cars and limited company transparency
.
TheToyota Corporation, which brands its business on having the safest cars in production, now facesscrutiny because of over 8.5 million recalled cars for widespread safety problems and delayedcommunication to stakeholders.Product recalls and unsatisfactory investor and consumer communications are the main
reasons for Toyota‘s recall crisis. This recall situation is considered a crisis because of the loss
of consumer and investor trust in the Toyota brand. This loss of trust is made evident by publicdiscourse and stock valuation. It is necessary for Toyota to rebuild and improve its relationswith its stakeholders to improve its brand image.
Toyota
: A Case Study on the need for trust in the automotive industry
Page 3
Table of Contents
I.
Case Study ..............................................................................................................................41.
Crisis Overview ......................................................................................................................41.1
Factors of Crisis ..............................................................................................................41.2
Problem Statement ...........................................................................................................52.
Toyota Corporation Background ............................................................................................53.
Identification of the Crisis ......................................................................................................63.1 Violated Trust ...................................................................................................................63.2 Communication Confusion ..............................................................................................64.
Significance of the Crisis .......................................................................................................74.1
Toyota‘s
Reputation .........................................................................................................74.2 Toyota
‘
s Crisis Financials................................................................................................75.
Future Outlook .......................................................................................................................8
II.
Appendix ..................................................................................................................................9
III.
References ..............................................................................................................................13
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