Tag Archives: Ira Kalb

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We previously highlighted how Toyota utilized innovative social media strategies to repair its reputation following recalls in 2009 and 2010, but more problems, including recalls in both October and November of this past year, have threatened to undo that progress. Toyota attributed these recent recalls to “its increased diligence toward quality and safety” and “fought vigorously in recent years to defend itself against claims that its vehicles were prone to speeding out of control with no warning,” according to Forbes.

The Value of Trust

Despite the historic size of the recent settlement—and the fact that the acceleration issues have not been scientifically confirmed—Toyota appears to have decided that the benefits to its reputation outweigh the cost. As the Wall Street Journal points out, the settlement “includes no admission of fault or unlawful conduct by Toyota and allows the company to avoid the risks associated with battling a lengthy trial.”

By offering support and compensation for both current and former owners of affected vehicles, Toyota is seeking to win back the trust of some of its most important customers. “This settlement is a nod to loyal Toyota owners whose car resale values were hurt by the unintended acceleration issue and the intense publicity that followed,” auto industry analyst Michelle Krebs told Forbes. Additionally, allocating $30 million “to finance automotive safety research related to driver behavior and unintended acceleration” allows Toyota to underscore its broader dedication to safety. “We concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers,” said Toyota’s Christopher P. Reynolds. “This agreement marks a significant step forward for our company, one that will enable us to put more of our energy, time and resources into Toyota’s central focus: making the best vehicles we can for our customers and doing everything we can to meet their needs.”

An Expensive Solution

With its stock on the rise and the automaker set to once again become “the world’s biggest car maker,” Toyota appears to be faring quite well. But as Pepperdine University School of Law professor Richard Cupp warns in a Reuters article, “lawsuits like these could become increasingly common, even where there is not provable physical injury on large scale.” On Business Insider USC Marshall School of Business marketing professor Ira Kalb offers some valuable advice, pointing out how better crisis management and communication could have lessened Toyota’s woes. “To keep the top spot,” Kalb says, “making a better car is not enough.”

 
 
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Schwarzenegger’s Campaign to Repair His Image

Arnold Schwarzenegger has undertaken a campaign to restore his public image. The central issue the campaign is addressing—and needs to address of course—is last year’s infidelity. Schwarzenegger seems to be taking the best approach to that problem: owning it.

The release of his new memoir, Total Recall: My Unbelievably True Life Story, suggests the sort of confession and personal reflection that is needed. But in a host of negative reviews the media has judged that attempt unsatisfactory. It “fails to achieve either the depth or the emotional impact that would make us care more deeply about this fascinating public figure,” according to the Washington Post’s Vernon Loeb.

The Toronto Sun offers some excellent advice on how he could have crafted a more effective memoir.

Schwarzenegger’s reputation rehabilitation plan has fared better with the recent launch of his own eponymous political think tank at USC, a move that has helped rebrand him as “a global policy wonk and statesman dedicated to leading America into what he calls a new post-partisan era,” according to the Associated Press’ John Rogers. The American Psychological Association’s Dr. Bernard Luskin explains the relative success of this branch of his strategy to The Christian Science Monitor’s Gloria Goodale: “Arnold will persist with the same aggressive ruthlessness that he has demonstrated with the other obsessive passions in his life,” the American Psychological Association’s Dr. Bernard Luskin tells Ms. Goodale.

Arnold’s Future

There is no broad consensus on how effective Schwarzenegger’s efforts will finally be, but experts tell the Monitor that his comeback could succeed, but it probably won’t restore him to his previous stature. “The public may be willing to forget to some degree but will not forgive—so much as accept—as he attempts to remake himself,” says the APA’s Luskin. Echoing that sentiment, University of Texas, Arlington’s Ben Agger imagines that the former California governor “well be publicly redeemed if he seeks, not elective office, but talk-show host.”

Luskin and other analysts have likened him to Bill Clinton, but Schwarzenegger will need to recognize his own unique strengths and weaknesses to fulfill his goal. A Business Insider article by USC marketing professor Ira Kalb provides a great breakdown of the characteristics and history of his public image. He deftly protected his reputation against previous allegations, Kalb acknowledges, but last year’s scandal dealt it a major blow. “Time will tell if he is successful repairing his image,” Kalb says. “His admissions and apologies are two steps in the right direction, but this is the third time he has employed this approach in public, and it may take more time and a more aggressive charm offensive to pull it off on this go-round.” Schwarzenegger certainly doesn’t lack aggressiveness, but he’ll need the perfect balance of charm to win back the public’s trust and respect.