Earlier this week, I moderated an interactive crisis management workshop on behalf of PRSA Charlotte. We explored top crisis management observations from 2010 and then held an interactive discussion on BP/Deepwater Horizon disaster and on the Toyota recalls. (These links provide you with summary points shared with the PRSA members.)
We ran short on time and needed to truncate an important part of the Toyota recall case. The quick summary raised a few eyebrows in the room and we didn’t have time to explore some of the media sensationalism felt by Toyota. As a promise made to those members and as interesting reading for the rest, I’d like to summarize that here:
By early February, there were swelling reports that “unintended acceleration” was occuring in some Toyota models. Some believed this was caused by software. This led to some sensational media coverage, leaving Toyota owners believing in “ghosts in the machine.”
Reports begin to surface of “sudden acceleration” from one auto manufacturer, including heartbreaking video/audio of fatal incidents
Media coverage of the situation is sometimes sensational, adding to public concerns about “runaway cars”
Plaintiffs’ lawyers swarm and advertise to collect testimony of anyone involved in an accident in these cars
“Experts” like the Center for Auto Safety weigh in on the situation, confirming the public’s fears about the safety of those cars
Government officials get involved, publicly skewer the auto maker, and then order studies to determine the sources of the problem
Months later, after reputational damage is done, fines are issued and legal verdicts and settlements are paid – studies begin to show that “driver error” is likely in most of the car accidents
As the legal basis for “sudden acceleration” weakens, other owners and plaintiffs lawyers seek compensation for lost resale value