Bartlett Group

In the last months, the problems of Toyota highlight why firms need good business continuity planning and product recall procedures in place.

The troubles of Toyota have shown how vital it is for proper plans to be put in place to avoid the potential harm that can be caused to a business where this is not the case.

Toyota's reputation has always been as one of the most efficient and reliable car manufacturers in the world. However, in a matter of weeks, due to acceleration and braking problems, compounded by the poor handling of consequent product recalls, this reputation has been severely damaged and it will take a long time to rebuild consumer confidence.

With proper planning, including an effective communications plan, the impact of the recall could have been severely reduced. This now has the potential to be the largest product liability payout in the automotive industry. Dozens of lawsuits have been filed against the automaker in relation to crashes and fatalities and more are anticipated. Class action suits are impending, seeking to recoup damages for the reduced value of the automobiles and the inability to drive the cars while they are being repaired.

Sadly many companies, large and small, do not have adequate contingency plans in place. As a result, they are not getting the most beneficial terms from their insurers or adequately protecting their businesses for the long term.

To learn more about Business Continuity Planning & Product Recall Procedures, please contact us.