The bad news continues for Toyota’s brands. Prius, Lexus, Sai, Camry and Tacoma recalls have been issued in the past week. And there is investigation going on about possible problems with the steering on newer Toyota Corollas. Customer Satisfaction with Toyota has certainly been impacted with this widespread quality problems. Some Toyota units in the US were named in a Racketeering lawsuit. Toyota shareholders have also seen a big drop (about 20%) in their share value since mid January when the most recent recalls started.

Toyota is working hard to on reputation management, trying to appease customers and restore customer satisfaction and loyalty. Despite this effort multiple law suits and class action suits have been launched against Toyota. There is a perception that the current fix being implemented is not the real solution, that there are lingering problem with the acceleration system (computer, electronic and mechanical), and the lack of a brake-to-idle failsafe, which brings the engine to idle when both the throttle is in the open position and the break pedal is depressed. There is also concern that Toyota failed to exercise its duty of warn’ customers of a defect in a timely manner. Toyota is the middle of a major reputation management nightmare.

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