Everyone knows the challenge Toyota Motor Company is facing with sticky gas pedals. We know that Toyota and its dealers have suspended manufacturing and sales of the affected models. We know that millions of current owners are greatly concerned about the cars they drive to work or use to transport their family. We know that a design fix has been made by Toyota’s supplier CTS, and it is shipping. We don’t know who will receive the limited resource (the new pedal design) first.
So here is Toyota’s Who Is No. 1 Challenge.
The Factory Scenario: If the factory receives the parts first, production facilities can be restarted, 1000s of employees will move back to a normal work schedule, and new cars can be shipped to dealers and ultimately purchased by consumers.
The Dealer Scenario: If the dealers start to receive the updated pedal assemblies first, they can begin installing them on cars in their lots, which will enable new car sales to resume. In turn, plants will remain idol and cars currently in use will remain at risk.
The Customer Scenario: If the customer is the top priority, new pedal assemblies will be shipped to dealers and cars with defective pedals that are currently in use can be repaired, thereby satisfying the needs of the existent customer. In this scenario, plants remain idle, and new cars on dealer lots aren’t available for sell.
The Modification: Toyota and its supplier CTS is talking about providing a modifaction kit for cars currently in use. This would allow updated pedal assemblies to be used by the factory and dealer installs on new cars currently sitting on dealer lots. Will customers be truly satisfied with a so-called fix?
Which scenario will Toyota pursue? Which scenario should Toyota pursue?
It’s a tricky question, because it gets to the crux of “Who is No. 1.” If Corporate Profits are Number 1, factories will receive the assemblies and a few might leak through to the dealers. If the Dealer is No. 1, dealers can begin moving stagnant inventory and keep their sales staff productive. If the Customer is No. 1, consumers will feel valued and might be forgiving.
Now let’s take one additional piece of information into consideration, this being Toyota’s Mission and Values Statements.
Mission Statement
“To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.”
Vision Statement
“To be the most successful and respected car company in America.”
With everything now on the line. Which next step should Toyota pursue? I believe their next step will truly determine whether or not they live their Mission and Vision Statements. I believe it will define Toyota’s future success, or decline. Unfortunately, it could have all be avoided.
What do you think? Which demand point should recieve the new pedal assemblies?
Today an article appeared in the The Wall Street Journal, it is titled, “
Over the past year, conversations with consultants, to business owners, to business leaders, to employees focused on doing the right thing reveals just how dangerous Silence truly is. Initially, the silence is somewhat benign. However as I’ve discussed and illustrated (see chart), silent problems grow in toxicity over time. And when (not if) a silent problem surfaces, it can derail an organization with ease.
Toyota has lost its sales momentum, its quality distinction and its marketing muscle. In essence, Toyota is simply another me-too car company with nothing exciting to sell or a competitive advantage to tout. As I’ve noted 
An excellent analogy is the game Minesweep. In Minesweep, you’re provided a grid with the knowledge that a number of unseen landmines exist. As you start clearing the landscape, clues along the way provide an approximate location where they exists. If you fail to read these signals correctly, you will likely hit a landmine, and the game is over.