Money for Nothing and Complaints for Free

Interesting fact: A raft of academic and industry studies show that customers who complain and have their complaint successfully resolved bring in more money to the company than it costs to fix the problem.

In the topsy-turvy Toyota World, however, it’s the customers who are already happy that get the red carpet treatment and big bucks. Have you heard about Nick and Sharyn Davis, from Parker County, Texas? You will soon. According to The Weatherford Democrat, the Davises are among the lucky winners in a Toyota advertising campaign, touting “real people with real stories about their Toyotas. And, the Davises are part of those real people.”

No Black Box Exoneration for Toyota

The Wall Street Journal made a splash yesterday when it reported that the US DOT had analyzed dozens of data recorders from Toyota vehicles in crashes blamed on unintended acceleration and found that the throttles were open and brakes were not applied.  These findings support Toyota’s position that SUA events are not caused by vehicle electronics, the Journal claimed.  The Journal apparently based its report on information leaked by Toyota, because NHTSA is denying any involvement.

Toyota’s efforts to place the story with the Journal seem to be paying dividends –  literally. The automaker’s stock rose 1 percent on the news and reporters scrambled to repeat the Journal piece with no independent sources.

Every Time We Learn Something Else, It Gets Worse (for Toyota)

Some day, possibly very soon, the Harvard Business School is going to do a case study on Toyota and sudden unintended acceleration, and two of the underlying principles are going to be: Don’t lie so (bleeping) much; and Swat not the gadfly with a sledgehammer.

We know that Toyota has compounded its technical problem with a public relations disaster, but we’re always fascinated to learn that it’s worse than we thought – to wit Toyota v. David Gilbert.

Toyota Washington Watch

We sat through the National Academies of Science first public meeting to tackle the Electronic Vehicle Controls and Unintended Acceleration Study, a NHTSA-sponsored effort to look broadly at the issue, and we are happy to see that the agency has brought in some outside expertise.

This is truly an opportunity for the regulators to advance their knowledge base beyond the era of the mechanical automobile and into the age of automotive electronics, rapidly migrating from a vehicle’s entertainment center to its most basic functions of acceleration, braking and steering. It is critical to future policy setting and defect analysis.

Be Careful what you Wish for Toyota

Once upon a time, there was a Federal Motor Vehicle Safety Standard for accelerator controls. It was a very ancient standard, written in 1972, when vehicles were equipped with purely mechanical systems. FMVSS 124 Accelerator Control Systems specified the requirements for the return of a vehicle's throttle to the idle position when the driver removed the actuating force from the accelerator control or in the event of a severance or disconnection in the accelerator control system. Its purpose was “to reduce deaths and injuries resulting from engine overspeed caused by malfunctions in the accelerator control system.”

Decades passed, and so did the mechanical systems, into automotive history. The car makers began to seek the wise counsel of the National Highway Traffic Safety Administration: did FMVSS 124 apply to electronic systems? Yes it did, NHTSA said.

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