Chris Croft's Personal Blog

February 5, 2010

Short Term Thinking

Filed under: News and Politics — chriscroft @ 10:03 am

Poor Toyota, the first quality problem they have had for years.  They still make the best quality cars around (though I prefer my Audi.  Why is that I wonder?).

I don’t think the current recall will affect their reputation one bit, in the longer term.

a) They will have been seen to have dealt with it very professionally.

b)  The exception proves the rule – the fact that there is so much fuss just shows how reliable their cars normally are.

c) Any publicity is good publicity in the end.

d) People forget as quickly as they panic

but it’s a great example of how we are so short term in our thinking – “Oh my god it’s a disaster, the end of life as we know it”.  Next week the news will have moved on to something else!


1 Comment »

  1. Disagree. Toyota sells cars because it has a reputation as the maker of highest quality cars. Over the years, the basis of this reputation has been eroded – the others have pretty much caught up. 2009 was not the first year they headed the league for recalls in the US. The current incident has erased the aura, maybe forever. (Quote from punter heard on American TV: “I always thought Toyota had the best quality. Now I find they are just another American company”.)

    It is true that the media have over-egged it because the former reputation was so high, and, let’s be honest, because Toyota is Japanese. But Toyota has not handled this well. I suspect their crisis management function was under-developed because, well, they have had less crises.

    But Toyota’s unique position has been eroded just as Hyundai (world’s number 4 producer) is emerging as a serious competitor with product and quality very close to Toyota’s and prices far lower. And watch VW, now the world’s number 2, and far stronger than Toyota in Eastern Europe, Brazil and China.

    Comment by Martin Herrington — February 10, 2010 @ 1:45 am

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