Tesla’s Problem….?

Tesla Motors Inc., the American automotive and energy storage company, has recently recalled all of its Model S Sedans after discovering a seat belt deficit in one of its consumers’ cars.  The recall is the company’s largest, encompassing over 90,000 units.

 

Safety First!

Safety First!

The decision was made based off of a single report, and is believed by Tesla to be a simple manufacturing error.  At first glance, it may seem absurd to how Tesla would go to such incredible lengths to make up for such a seemingly small and uncommon event. Also, many would assume that the recall would cause a negative impact on Tesla’s reputation.

However, Tesla’s actions show industry awareness and employ marketing strategies that would benefit itself, despite the possible losses incurred by the company. The timing and execution of the recall are done under ideal circumstances.  Furthermore, just a few months ago, the infamous Volkswagen scandal caused irreparable damage to the automobile brand by exposing untrustworthy colors. By recalling all of its Model S Sedans after a single report of a seat belt issue, Tesla is marketing the fact that it truly cares for its consumers and is concerned about issues apart from profits. Unlike Volkswagen.

While this marketing tactic may be costly and seemingly pointless, Tesla’s strategy may prove critical during such a delicate time period for the automobile industry.

Sources:

http://www.bloomberg.com/news/articles/2015-11-20/tesla-to-recall-90-000-model-s-cars-to-check-front-seat-belts

http://www.cbc.ca/news/business/tesla-recalls-all-model-s-sedans-to-fix-seatbelt-defect-1.3328058

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