Mar 03 2010
Toyota Sales Drop 9%; GM, Ford Way Up
Well, it is no big surprise that Toyota’s sales dropped pretty steeply in February (for Toyota a 9% fall is like going over the proverbial cliff). The company continues to battle with the flood of negative publicity about the safety of its cars and, more devastatingly, the alleged cover up by Toyota in dealing with these massive problems.
It is fascinating to see the parallel rise of GM’s and Ford’s fortunes, just as Toyota has slipped so badly. The recent sales increases of these two domestic auto makers was largely due to Toyota’s troubles. But, they are also getting their footing back as well.
Toyota is now working as hard as it apparently can to regain the trust it lost. It has been running commercials everywhere (including during the recent Olympics), and full page "letters to customers" in the major newspapers. Toyota executives continue to apologize wherever and whenever they can, and the company is touting its new commitment to safety.
Good for Toyota. These actions are the right thing to do, but long overdue.
Toyota can come back from this. A brand as strong as Toyota has a pretty deep pool of good will it can tap into to reclaim its good name. However, this entire affair once again demonstrates to companies large and small that reputations — no matter how golden — are not a static thing. They are dynamic and constantly shifting. You need to continue to enhance and protect them by doing the right thing by your customers, partners and the public overall.
Toyota’s troubles (which are by no means over) also remind us all of the old Washington, DC crisis maxim: The crisis itself is not usually the fatal event for a politician or brand. It’s the cover up.
Lesson learned. We hope.
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