Will the official reports just released from NHTSA and NASA boost consumer confidence for the Toyota brand and give the company a leg up in its legal battles? Pace Professors Paul Kurnit (marketing) and Steven Goldberg (law) discuss whether the world’s largest automaker can restore its battered reputation for safety and quality with David Schepp of AOL’s DailyFinance.
Toyota’s bungled handling of big recalls involving its Toyota and Lexus vehicles led to a record $48.8 million in fines by the federal government. The media blitz that accompanied the recalls drove down sales in the U.S. and led to numerous lawsuits.
“I think Toyota blew it early on,” says Paul Kurnit, clinical professor of marketing at Pace University. “Acting not unlike a deer caught in headlights, Toyota management went into denial mode,” he says.