Do you recall anything like it: An unprecedented "stop selling" order from Toyota

As a perpetual student of how companies behave and how consumers respond, I am fascinated by everything that is happening right now in the automotive sector. In short, Toyota has ordered their dealers to stop selling eight models, including the very popular Camry and Corolla. Rather than belabor the details here, I’ll provide you with links to a few different places where the story is shared in detail:

The statement from Toyota (PR Newswire).

USA Today: Toyota suspends sales, production, of eight models.

New York Times: Gas pedal flaw leads Toyota to stop building 8 models.

Wall Street Journal: Toyota halts sales over safety issues.

And here’s the story from NBC News (commercial pre-roll required):

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Implications: Many observers are comparing this announcement to the sweeping recall of Tylenol by Johnson and Johnson back in 1982. I’m not so sure that’s a fair comparison: That historic event was related to a sinister plot in which Johnson and Johnson (the maker of Tylenol) was one of the victims; the company was quickly exonerated… as the incident was a matter of package tampering.

This is a case of quality control, involving a company that has long enjoyed a reputation for quality.

In the short term, to say that this hurts Toyota and its dealerships is an understatement. But over the long term, I’m thinking about a number of questions.

• Will this move be seen as a courageous and decisive move by Toyota; a painful move they were prepared to take in the interest of protecting their valued customers?
• Will this issue be seen as something that should have been discovered and addressed sooner? It follows a massive recall that was announced last week, and media attention about the gas pedal issue that has been going on even longer.
• For consumers who were considering one of the Toyota models involved, which competing models might now become favorable alternatives? Or, will those consumers wait, and give
• Toyota a chance to better define the problem and explain its solution?
  

If you’re a student of consumer behavior, stay tuned for a fascinating case study.

Mike Anderson