Automotive
Toyota fined $32.4 million for not notifying safety issues
Toyota is to pay a fine of $32 million to the US transportation department for not notifying them on the safety issues in the stipulated time. The auto giant has agreed to do so and this it hopes will bring an unfortunate year to an end.
In a year of major reputation crisis Toyota had it the worst in the auto sector with the recalls and the reputation blitz that followed. Toyota was the worst performer among major automakers in the U S this year, with a rise of just 0.2 percent in its single-biggest market.
While the famed management style – ‘ The Toyota Way‘ may have been great all these years, being such a global leader with a huge US market and managing it all from far far away has had its effects. Traditional management rules from Toyota city, in Japan, probably brought out these problems in the first place.
As far as business reputations go the automaker has had its worst year till date. Recalling 11 million vehicles worldwide and now being slapped a record fine has brought up the pay-out made by the company to nearly $50 million. And billions could follow if related lawsuits succeed.
“One Little Lady” & Avis refunds 20,000
After the Alaska Airlines Baby blunder story comes another example of how social media and customer action is forcing companies to act. Sue Fitzgerald booked a car hire with Avis online and on arrival at the Avis Car Hire desk was informed that her hire would be more expensive:
They told us the price was higher than the price that I’d booked. I thought, ‘I don’t think that’s right – you have to charge us what we agreed to on the internet price.’
“And they said, ‘No, you don’t understand, that’s just the way it is.”
She complained to the Consumer Watchdog and Avis has been forced to refund 20,000 customers. ”I think I was the only one that complained,” she says, “so one little letter… and success for 20,000 people.”
Companies are having to pay real attention to customers, who can now leverage the anger of the Internet community as fast as a company can. All it took was for one of their customers to complain and see what happens. Her complaint related to hidden charges which is the bain of most of our lives, but it would seem as though fed up customers may have a weapon in their fight.
Is Phil Keen the new Stig?
BBC’s Top Gear has featured in the news recently due to their very public, and very unsuccessful, court battle with publishing company HarperCollins over rights to publish the autobiography of the former ‘Stig’.
Claiming that Ben Collins, former Formula 3 racing driver, was in breach of a confidentiality clause in his contract with the show, the BBC demanded that the book not be published so that the anonymity of their Top Gear character remain intact. They said that the character’s mystery was a key contributing factor to the ongoing success of the show, and that HarperCollins shouldn’t be allowed to publish the book, entitled ‘The Man in the White Suit’.
And now, as TV bosses at the BBC and Jeremy Clarkson try to decide whether or not to continue the Stig as a feature of the show, news of Collins’ replacement is already lighting up the internet. It’s reported that young driver Phil Keen, having already stood in as the Stig for the show in the past, is set to take over the role – ensuring that the mystery surrounding the character will forever be that little bit harder to achieve.
The internet is a hot medium for the spreading of gossip and breaking news, and if this ongoing headache for the producers of Top Gear shows anything at all; it’s that you don’t have to have done anything wrong to attract the wrong kind of attention.
Online reputation management cant protect your business and help keep your secrets out of the spotlight. Act now, or risk your own Stig leaving you with a bitter taste in your mouth and skidmarks over your… reputation.
Some Companies Pay Attention… Land Rover & Quality

Do Land Rover fit together right?
Following the post of the weekend on Land Rover and the JD Powers IQS Survey, Jaguar Land Rover North America (the company name) responded with a more detailed rebuttal which I have quoted below in part (which I hope is okay with them). Two things interest me: they responded that fast which shows that they are paying attention to commentary and they responded in person. In other Jaguar Land Rover are reaching out to people who might be influencers.
I wanted to acknowledge reading your blog post on the J.D. Power quality ranking. Given our ranking, I guess we deserve random shots from afar, so no argument from me. I do want to share with you our position on the matter and give you some background on the survey itself.
The IQS survey measures customers’ reactions to how their vehicles’ function, such as in our case, the ease of closing and opening of a rear trunk, hatch and glove box, as well as items that require fixes, such as software updates for the Hands Free Communication System. Issues raised by owners do not specifically indicate malfunctions or build quality issues, but do represent a concern or dislike. There was no indication from J.D. Power that there were actual mechanical or driving problems, such as transmission failures. Frankly, the issues that arose were more annoying, than impactful on their reliability. Nothing to be proud of, but certainly the light-hearted imagery you portray of customers constantly driving to garages is misleading.On a positive note from this year’s survey, the Range Rover model was actually honored as a top rated quality vehicle in its segment. And in 2009, Jaguar placed tops in the industry for J.D. Power three year reliability (VDS). Also, our brands generally score well on J.D. Power’s APEAL survey, as well as overall sales and customer satisfaction surveys. Which basically means that while our vehicles might have some issues that pop up on this survey, those are strongly overshadowed by their overall great performance and design, as well as the desirability of the ownership experience. Nonetheless, we strive to do better.
In terms of the actual issues reported in this IQS survey, be assured actions are being taken. We have measures in place through the dealers to address most of the “fix” issues highlighted in the survey. In relation to the design issues, our team is committed to analyzing the comments and flowing these into future product considerations. Some criticized design items are already scheduled for improvement.
Delivering wonderful automobiles and ownership experiences is our top commitment. We can do better, but we also know that our customers generally love their automobiles and the service they recieve.
Please feel free to let me know if you have any questions about our company. …
There is some sense of humour in the opening which is great as so many companies respond to criticism with a blank denial or a no comment. (Given our ranking, I guess we deserve random shots from afar, so no argument from me.) They also have a positive take on the survey and a rebuttal in terms of quality as in top rated quality vehicle in its segment.
What can we understand from the two sides? The IQS reveals that Land Rover owners are affected by lots of little niggles with their vehicle which LandRover assures are being addressed with a proviso that underlying design faults or mechanical faults are few are far between. Do Land Rover buyers expect too much from their vehicles? Interesting that Porsche was at the top of the survey when they have never been considered especially reliable, but then owners expect the car to be a bit of handful. Is there an issue with build quality or is this dealer delivery for Land Rover?
Is it coincidence that Jaguar and Land Rover are at the bottom (with Mini and Mitsubishi)? Remember that this is a consumer survey so Land Rover Reputation Managers will be aware that this is their customers’ doing the talking which suggests that maybe they need to reach out to them more and shape their perceptions more. If the faults are small and nebulous, how can Land Rover ensure that their owners are unconcerned by them. Furthermore the issue is critical for Land Rover: the design is excellent, cachet undoubted, brand positioning spot on, but continued issues with quality will undermine all that excellent work. Land Rover has been plagued by issues of mechanical failure and poor dealer and service (see landroverhell.com for an especially angry example from continental Europe, my business partner experienced some of this as well in Scotland.)
End of Term Report for Land Rover: your communications team is on the spot, but service and customer perception needs work.
Land Rover’s Quality – Not an Issue!
J.D.Power’s 2010 US Initial Quality Study does make not bedtime reading for Land Rover Executives as their cars perform worst of all surveyed cars. (see graphic) Not just worse a little worse but substantially worse than their next rival Mitsubishi. Is this a problem for Land Rover? Not necessarily as there are two types of Land Rover owner: those who buy for prestige and those who buy for performance. Those who buy for prestige and who opt for Range Rovers do not seem to care about the quality and love the Columbian Cartel chic. There is another type of owner who buys the Discovery because it is practical for shopping and the kids (these are the people who think the streets are a mini Beirut where driving a tank is your only hope of survival) and for them, the constant gearbox failures and wonky electronics will turn them off the brand for life. Bad news for new owner Tata.

JD Power 2010 IQS Survey
A quick glance tells you something else: British car manufacturers still don’t get quality with Jaguar and Mini in the bottom five. That makes three out of five for British cars: enviable, NOT. The interesting thing to note is that these are prestige cars without an awesome reputation for design and style (except maybe for the Jaguar). They are bought for looks and possibly not for reliability. However, we have been here before with English cars… poor mechanics impacting long term sales. The Japanese built their market on reliability and service and the British lost their for the same reason.
What does the survey tell us: that owners of Land Rovers are more pissed off than other owners after 90 days! Closely followed by Mini. One reason may be that there is a perception in the market of quality which is not experienced. Bad news: early problems are predictors of long term problems with a car. Next time a Range Rover Vogue with darkened windows swooshes past you, remember, he is probably just driving to the garage!
