PR 101

Last Wednesday, I said Toyota was slow out of the blocks to respond to the various crises it has faced of late. I think I was blogger 10,143 to state the obvious. However, I also said the company is showing signs of regaining its equilibrium.

Note: I drive a 2000 Camry. Both my children drive Corollas.

The company is running ads in every print and broadcast outlet it can find – including a lot of radio. It has shown pictures of its idled factories to demonstrate how serious it is in identifying the accelerator and brake issues. It also has a very active presence on Facebook.

Still while this is a good start, I think the company could do more. I think they if they handled it as I suggest, they would turn a negative into a positive.

Do What Datsun Did

The first thing Toyota’s C-Suite executives should do is plan road trips to every dealer in every country where Toyota is sold. The road trippers should be Chairman Fujio Cho, Vice Chairmen of the Board Katsuaki Watanabe and Kazuo Okamo, President Akio Toyoda, and in North America, Jim Lentz, president and chief operating officer of Toyota Motor Sales, USA. If there are people who hold the same positions as Lenz in Europe, Asia, South America, the Middle East and Africa, they should also pack their bags.

They need to take a page from the handbook of retired Nissan executive Yutaka Katayama.  It was Katayama who made Datsun (which later returned to its original name of Nissan) into the first Japanese automobile success story in the United States, according to the late journalist and author David Halberstam. It was Halberstam who detailed Datsun’s success in “The Reckoning” – his account of the rise the Japanese auto industry.

Katayama lived in the United States. He traveled constantly around the U.S., meeting, customers, dealers, reporters and anyone else who talk to him. Halberstam explained that Katayama made Datsun a powerhouse because “he (Katayama) was a rare man. He brought a face to the Japanese mercantile presence; meeting him, Americans felt they knew, understood and liked the Japan that was behind his products.”

This is what Toyota’s executives should be doing. Going to every place in the world where there have been problems. Once there, they should personally apologize to their customers. They should be interviewed by the media in each city and repeat the apology. They should honestly answer the tough questions about what they knew and when they knew it. They should be speaking to every group that will listen. There should be town hall style meetings at dealerships for the customers and the general public to air grievances.

These public appearances will, in my opinion, do much to quell the anger and rebuild trust. Most people are willing to forgive a mistake, as long the one who makes the mistake sincerely apologizes.

Cut Prices

Second, a simple thing to do would to be slash prices on all models. Not a token five percent cut – a real one in the neighborhood of 25 percent. For those who have a car with a defective accelerator or brakes, give them a new car. I would throw into five years free maintenance for every car sold. Not just for oil changes and other minor things, but for all repairs from replacing a headlamp to replacing a transmission.

More Social Media

Third, I would make better use of social media than they are. Both Cho and Lenz should be blogging every week. Craig Newmark – the Craig of Craig’s List does, as does Jonathan Swartz, president and chief operating officer of Sun Microsystems and my personal favorite CEO blog, that of Southwest Airlines Gary Kelly. It has helped all three companies when they have hit rough patches. Explanations sound so much better when they come from the person in charge.

Finally, there are many, many people out there who are still strong Toyota supporters. Anecdotally, I know that because as Chester the Wonder Dog and I walk each day, I talk to Toyota owners. I have yet to find one who would get rid of their car.

I have also been on the Toyota Facebook page for U.S. owners. The level of support is amazing. Toyota needs to get those people more organized around company support. Most kind of companies would kill for that kind of support.

Put this all together and I think Toyota will be just fine.