Toyota will bounce back after current recall crisis

The Toyota brand will not be irrevocably damaged by the current recall crisis, according to a majority of those voting in the recent MarketingWeek.co.uk poll.

The car brand is engulfed in a global recall of more than 8 million vehicles and says that it estimates it will lose about $2bn (£1.23bn) in recall costs and lost sales.

However, 62% of those responding to the poll question on whether the marque’s recall of eight models would cause long-term damage to the brand said “no”.

More than a third of respondents (38%) did say that the Toyota brand would be undermined for years to come.

Toyota has been dealing with the recall since 21 January, when the fault was first uncovered in the US. It has used several marketing efforts to try to reassure customers including creating a purpose-built website and a dedicated hotline, running a full-page apology letter advertisement in the press, and a message on YouTube to empathise with consumer sentiments.

However, its woes have continued with news that some Prius models, the marque’s flagship hybrid model, have problems with their brake pedals and will need to be recalled globally.
Toyota has pledged to halt deliveries of new cars in order to repair the defective pedals on certain models.

David Haigh, chief executive of independent global consultancy Brand Finance, says the brand must act quicker if it wants to save its brand value in the long term.

“The problem is that Toyota was much too slow off the mark in responding with communications. It could destroy its brand value if it doesn’t get itself organised,” he says.

According to YouGov’s Brand Index tracker, the Toyota brand has been tarnished by the series of recalls over the past month.