Toyota has announced yet another recall. This time, it is 1.5 million cars mainly Lexus and Avalon models in Japan and the US due to brake fluid and fuel pump problems. About 740 000 Lexus, Avalon and other models for repairs in the US and 599 000 in Japan. The problem seems to to be a compounding weakening of the break power because of a defective brake master cylinder. This incident is probably one of the worst things that could happen to Toyota. They had already been scrutinized for previous issues within the past few years. Toyota’s reputation had already been tarnished and they had been trying to elevate their brand name again. This recall will definitely damage Toyota’s reputation. People will associate the name “Toyota” with defects, recalls, scandal, and bad quality. Toyota’s US market share has shrunken 15.2 percent in the first 9 months of this year. Further shrinkage would not be surprising to me. Toyota has a lot to work on to reclaim their spot in the automotive market.
This article looks at the issue of brand vs. product (as discussed in class) as well as reputation. Yet another round of recalls from Toyota may cause people to lose loyalty in them and deem them unreliable. In class we discussed how a brand carries along with it a reputation and the continuous recalls by Toyota certainly has and will continue to damage their image.
SOURCE: ALJAZEERA