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January 28, 2010

Toyota should emerge with image intact

There are many stories suggesting that Toyota sales will suffer long-term damage because of the accelerator problem. But I'm with Justin Newman, a 2008 Toyota Avalon owner whom The Sun interviewed yesterday. "I don't see a single safety issue as a necessary indicator of a corporate trend," Newman said.

A car has maybe 2,000 parts. The hazards of chance and time mean that every now and then an important one will break down, even for a company with an excellent record for quality and safety.Given Toyota's long, impressive record of delivering great cars, it seems like this will be treated as a glitch. A sticky accelerator isn't a systemic issue like metal parts that exceed tolerances. Brand loyalty to Toyota can be measured -- the premium buyers are willing to pay over similar cars made by Ford and GM. Toyota took a while to address this problem, but it should come out of this with most of its reputation intact.

"Integrity doesn't imply a perception of error-free performance," William J. McEwen writes in Married to the Brand. "Instead, it strongly suggests that: -- errors and problems will be rare rather than frequent, and -- identified problems will be acknowledged."

Posted by Jay Hancock at 8:22 AM | | Comments (0)
Categories: Marketing
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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