BU Now » Toyota

Toyota gets another subpoena

Dick Taffe — Tue, 20 Jul 2010 15:27:22 +0000

Once again, Toyota has been subpoeaned by a federal grand jury in New York seeking information on steering-related defects in its vehicles, and possibly broadening a probe into the Japanese automater’s handling of a recall back in 2005. Law Professor Keith Hylton, an expert in liability law, says the case may come down to how much Toyota knew about these problems and when they discovered them.

“If Toyota knew ‘enough’ and ‘soon enough,’ then a court might find the firm liable for punitive damages in a tort action, on the theory that the firm’s conduct was reckless or intentional. However, if the firm became aware of a possible problem (sticky floor pads, faulty steering rods) without having any information on its frequency or severity, it may have taken the firm some time to discover the extent of the problem.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

Toyota pushing ahead

Dick Taffe — Thu, 11 Mar 2010 22:08:09 +0000

Despite recalls and bad PR , Toyota says it will use no-interest loans and lease discounts to help regain over the rest of 2010 the U.S. market share lost over the past two months. School of Management Dean Louis Lataif, a former Ford executive, says when one automaker launches a big incentive program others usually follow.

“In this instance, however, with Toyota uniquely suffering a precipitous drop in February sales as a consequence of the spate of unfavorable headlines, competitors will likely wait to judge the impact.”

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Toyota’s troubles

Kira Jastive — Mon, 08 Feb 2010 15:20:46 +0000

The troubles for Toyota keep mounting with a recall of 311,000 of its 2010 Prius expected this week. BU College of Communication Professor and veteran PR reputation management expert Peter Morrissey offers his thoughts on the embattled carmaker:

“Toyota’s reputation is its most valued asset. They are putting it at unacceptable high risk and they will pay dearly for this in the short and long run. They need to wrestle back control of the situation. Like putting toothpaste back in the tube – hard to do and very messy.”

Contact Peter Morrissey, 617-353-1020, pmorriss@bu.edu

Toyota suspends some U.S. sales

Dick Taffe — Wed, 27 Jan 2010 22:13:38 +0000

In an unprecedented industry move, Toyota, the world’s most successful automaker, temporarily suspended U.S. sales of eight models until it figures out a brake-pedal problem that sparked a recall. Former Ford Motors executive Louis Lataif, long-time dean of the School of Management, says it may help domestic manufacturers, but it premature to read too much into the situation.

“It may be that suspending sales while the technical correction is made to vehicles in dealer inventory — and a week or so of production stoppage — will represent a more modest financial and reputational blow than other alternatives which may have given the problem a longer life.”

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Auto industry update

Dick Taffe — Tue, 23 Jun 2009 14:45:56 +0000

The auto industry worldwide continues to struggle. With Toyota facing its largest losses ever, Akio Toyoda today becomes president of the company founded by his grandfather in 1937. Meantime, the first beneficiaries (reportedly Ford, Nissan, Tesla) finally are being named today for the loan program created by Congress in 2007 to help auto makers retool factories to make new-tech vehicles. School of Management Dean Louis Lataif, a former Ford executive, can discuss the industry big picture.

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu