TMV did not use the word “recall”, preferring  a “programme to freely inspect and fix vehicles”  instead.

15:39 (GMT+7) - Tuesday, June 14, 2011

       (Dzung Trieu Law Firm)_ Giant companies sometimes err when tackling a crisis and it’s their brands that can suffer.
In a country with a number of major brand names, the long-term branding strategy adopted by Japan’s Toyota Motor Corp has been among the most successful in gaining customer confidence worldwide, as evidenced by it huge turnover and profits. 
Toyota is the leading brand on the list of global best car brands, according to a 2010 report from Interbrand, specialists in brand services and activities. Its brand value previously stood at $26 billion, but the impact from the way it went about the recall of some of its models to fix problems have resulted in its brand value going down. 
In just 16 months Toyota recalled more than 18 million cars around the world, including 2.17 million vehicles because of carpet and floor mat issues that could jam the accelerator pedal. It has recalled more than 12 million in total since November 2009, many relating to problems with the accelerator. 
Recalls are by no means unusual in the automotive industry, with other major brands such as General Motors going through a similar process in recent times. But Toyota’s actions proved something of a concern. Actions by its leaders simply compounded the technical problems that had been identified. The company initially denied there any defects in its motor cars and then proffered a number of explanations that made consumers even more sceptical. 
It finally admitted there were some technical errors and instigated the largest-ever recall of its vehicles. Analysts believe the way the company addressed the issue has devastated customer confidence and trust. 
Last month a representative from Toyota Motors Vietnam (TMV) offered an official apology and announced the recall of more than 65,000 motor cars manufactured in Vietnam. TMV did not use the word “recall”, preferring a “programme to freely inspect and fix vehicles” instead.
The company’s behaviour has seen customers around the world change their view of the Toyota brand. According to one branding expert, the Toyota brand used to be the envy of the world, even by Mercedes and BMW. As competition becomes fiercer and consumers mature in their purchasing decisions, the way it handled the recall could not have come at a worse time. Only time will tell whether it suffers long term or short term. 
 

HUYEN THANH (news.vneconomy)