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Toyota’s global corporate disaster

  • By Paul Gover
  • Herald Sun
  • image

    Toyota Australia's Dave Buttner is used to success when it comes to the Toyota brand he represents. But, like almost every executive up to Akio Toyoda in the president's chair in Japan, he has no experience of a crisis like this one.

Dave Buttner looked like he needed a flak jacket and helmet on Monday morning.

As the front man for the Hybrid Camry launch in Melbourne the company's local sales and marketing chief was in the firing line as the subject switched to Toyota's troubles on the global front, with an eight-million car recall over unsafe accelerator pedals and a second safety crisis for the Prius.

Buttner is a smart man and, as the top Aussie at Brand T, he has more than 20 years experience of life in the Toyota way. But, like almost every executive up to Akio 'I apologise for boring cars' Toyoda in the president's chair in Japan, he has no experience of a crisis like this one.

Toyota is not supposed to have recalls. Nothing sub-standard is supposed to pass the factory gate. No-one is prepared for this scale of a global corporate disaster.  And that's what it is.

Toyota has traded for decades on its reputation for quality and reliability. Ask anyone who owns a Corolla about the car's bulletproof, run forever qualities and the strength of its resale value.  The Camry is boring, but it is also as honest and reliable as the fridge in the kitchen.

So, as Toyota Australia is winding up for a big swing with the Hybrid Camry it is also having to bat-down the criticism and questions from all directions. Carsguide readers are already emailing me to ask if it is still alright to buy a Toyota. 

To his credit, Buttner is blunt and honest as he fields questions from the motoring media pack. He has been prepared for the attack, and he stays 'on message' throughout the onslaught, but for a bloke who smiles a lot and is as upbeat as anyone in the car business it looks tough.

"I couldn't stand before you and pretend for a moment that the global situation ... will not have some impact on the brand. Or some other areas of the business," Buttner admits.  "We have to instil confidence . . . in our customers."

He works through the Hybrid Camry presentation with talk of prices and fuel economy and emissions, managing more than a few swipes at the Holden Commodore and diesel-powered European alternatives to the Camry.  But he cannot avoid the talk of recalls and damage to the reputation of the world's biggest carmaker.

"We can send out myriad press releases and spruik from the lecturn. At the end of the day, it's the customer's experience of the product," Buttner says.  "We will do whatever we have to do to maintain the faith of our customers."

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Comments on this story

Displaying 3 of 6 comments

  • Well as with every big company before it Toyota is also going through a rough patch. They just have grown a bit too fast. Maybe someone else will succeed them as the worlds biggest one day.

    mathew Posted on 21 February 2010 4:34am
  • “a few swipes at the Holden Commodore and diesel-powered European alternatives to the Camry” He should be very careful considering they cannot keep up the supply of replacement injectors for diesel Toyotas in WA. The Toyota dealer network do a good job of keeping the lid on reliability issues.

    John of Colac Posted on 16 February 2010 1:31pm
  • Toyota has long ago abandoned quality as their standard. Hyundai have taken that mantle on. Who remembers the Toyota boss who came from Japan in 1995 with the set mission of shaving $3000 off the build cost of the Australian Camry? - and who went home 3 yrs later,c rowing about how he had exceeded his target? Every Camry I have owned since the late 1990’s has got progressively worse in build quality. What about the American engine oil gallery problems that resulted in so many engine failures? The increase in Toyota warranty claims from 200,000 in 1998 to 1.9M by 2005? The need for Toyota to set up a complete new warranty dept to handle warranty claims, such was the overwhelming amount of claims? Does anyone know about the serious deficiency of Toyota engineers, that resulted in many Toyota products going to production with inadequate engineering checks? Toyota raised their annual engineer intake to over 900 new engineers, in 2007, after realising that only 300 new engineers every annual intake was hugely inadequate. Toyotas quality problems will remain for a long time, while the company continues to chase profits over quality.

    Ron N of Perth, W.A. Posted on 16 February 2010 12:22pm
  • This announcement was bought to you by Toyota.

    GM Forward Posted on 13 February 2010 4:23pm
  • You know, I bought a Corolla in 2006 and repeatedly went back to the dealer complaining about the steering but was put off time and time again. The car would not steer straight and was so tiring to drive that I got rid of it after less than two years. So much for a warrenty!
    These steering problems have been around for quite a while.

    David Page of Toowoomba Posted on 12 February 2010 2:05pm
  • My comment is not regarding the report but the fact the picture of Paul showing him with his seat belt over his arm rather than under dont think this would pass a police check!!!

    Ron Gibson of Mildura Vic Posted on 12 February 2010 1:03pm
Read all 6 comments

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