Toyota Recall: Better to Lose Profits and Save Face

February 16, 2010

Toyota’s safety recall, (followed by Honda, then Peugeot Citroen) of an additional 2.3 million cars made me think about the intersection of customer service and financial prudence. Toyota’s repairs to correct a mechanical fault will cost the business hundreds of millions of dollars in lost profits.

Why is Toyota spending this money now when it will obviously damage the business’s bottom line? Read more at the original BNET post to find out.

Filed under: Customer Service,How to Deliver Customer Service,The Right Kind of Customer Service

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1 Comment Leave a Comment

  • 1. cheap car insurance  |  March 1, 2010 at 10:12

    Lets not forget that Obama has always been a friend of the auto unions. It might be a coincdence, but there is no better way to pay back the unions than by knocking off the top non-union car manufacturer.

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