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Toyota Faces Massive Ad Buy to Rescue Brand

Recall leaves company's reputation in tatters

By Rob Quinn,  Newser Staff

Posted Feb 1, 2010 5:28 AM CST

(Newser) – Toyota is going to have to shell out for the biggest and best ad campaign in its history to have any hope of bouncing back from the recall disaster, ad industry execs say. The company—which is losing an estimated $400 million a week while sales and production are suspended—has suffered a multi-billion dollar blow to its brand and its future will hinge on how it responds, analysts tell Advertising Age.

"The next voice that they bring to the marketplace is the most critical decision they will ever make," an exec who worked on the Toyota account in the '90s says. Domino's rebounded after their CEO admitted "Boy, we stink and we're going to try this again," she notes, but Toyota's "Japanese family culture" will probably rule out that approach. She estimates the battered firm will need to spend some $500 million on ads "just to move the needle back in the right direction."

A visitor looks at a car displayed at a Toyota showroom in Tokyo, Japan last week.
A visitor looks at a car displayed at a Toyota showroom in Tokyo, Japan last week.   (AP Photo/Shizuo Kambayashi)
This undated handout photo provided by the Insurance Institute for Highway Safety shows a front end crash of a 2008 Toyota Tundra.
This undated handout photo provided by the Insurance Institute for Highway Safety shows a front end crash of a 2008 Toyota Tundra.   (AP Photo/Insurance Institute for Highway Safety)
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Toyota owners' confidence is shaken. Most consumers choose the Toyota brand because of its reputation, but where does this prolonged and misunderstood problem leave the company's reputation? - Michelle Krebs, a senior analyst
with Edmunds.com

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COMMENTS
Showing 3 of 5 comments
kROCK91
Feb 2, 2010 3:13 AM CST
I think it's pretty reprehensible that Toyota ignored the problem for so long. They're not the first company to be negligent about safety, but they're usually one that prides themselves on supposed safety. Yet they ignored this for over 5 years despite complaints.
rakewell
Feb 1, 2010 6:53 AM CST
Put some of that money into incentives! I need a new car... cheap!
Non-deep-thinker
Feb 1, 2010 6:15 AM CST
It's also not a dealership problem. It's not their fault. The people working in the dealerships are like everybody else you see on the street. There's Jerry and Donnie in service, and the parts guy, and a handful of techs; there's Velma answering the phones, and Gladys and her assistant in accounting; and Bert, Fred and Joey and Darlene out on the sales floor and Big Joe in the main office. They're all just regular lugs. They're just as discombobulated by this thing as everyone else.

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