plus 3, Toyota can restore reputation, experts say - YAHOO!

Toyota can restore reputation, experts say - YAHOO!
Electric Cars Moving From Prototype to Showroom - New York Times
Life After Hewlett-Packard: Tech giant's local alums bring skills ... - TMCnet
Statehouse Insider: Young Republicans express vitriol early - Desert Sun

Toyota can restore reputation, experts say - YAHOO!

Posted: 28 Feb 2010 02:25 PM PST

TOKYO (AFP) – Toyota's bungled global recalls has badly damaged its brand image, but while the carmaker faces its biggest-ever crisis, analysts and experts say its reputation is by no means beyond repair.

The Japanese giant, the world's biggest automaker, has been almost constantly in the spotlight since January over a rash of defects that have prompted the recall of more than eight million vehicles worldwide.

But the company's embattled president Akio Toyoda might be warmed to know that several high-profile firms in the past have recovered strongly from public relations disasters, sometimes even strengthening their positions long term.

Johnson & Johnson's crisis management over poisoned Tylenol pills in the early 1980s turned the US drugmaker into a hero, say PR industry experts.

When seven people died after taking the cyanide-laced painkillers, the company issued a mass recall and a large media campaign, introduced new tamper-proof packaging and gave customers free replacements.

The difference, however, was that the recalls were issued swiftly, whereas Toyota has been accused of moving far too slowly.

On the other hand, big names like Coca-Cola and Exxon Mobil were heavily criticised in the past over delayed public action -- although they managed to salvage their reputations.

Toyota may belong to this category, communications experts said.

"Recovery is much more difficult if you start off badly," said Jonathan Hemus, who heads British consultancy Insignia.

"If an organisation seems to grasp the crisis really very quickly in the first few days, then actually it can be perceived more positively afterwards," Hemus said.

"But if it takes a week or two to grasp the crisis, then it is a lot more difficult. So I think Toyota is in a tough position right now."

Toyoda, the 53-year-old president who took the reins last June, shunned appearing publicly for two weeks after the recalls emerged in the United States, and his company was slow to admit the vehicle defects.

He finally faced a roasting by US Congress last week and also appeared on CNN's Larry King show, offering apologies but few details.

"Obviously, a situation like Johnson & Johnson -- where they reacted very quickly, where they were prepared, had an immediate response and communicated very openly -- is ideal," said Deborah Hayden of Kreab Gavin Anderson Japan.

"But not every company, for whatever the reason, is as well prepared."

However, even those that delayed their responses eventually recuperated.

Exxon, the precursor to Exxon Mobil, triggered an environmental catastrophe when a tanker unleashed a horrific oil slick in Alaska in 1989.

"When the Exxon Valdez sank off Alaska, it took something like a week before the president even talked to the media," said Hayden.

"In the meantime the world's television screens had been inundated with views of birds and animals covered by oil. It took them time, but they recovered," she added.

And that could go for Toyota too she said: "Crises are very consuming and move very quickly. But you can get through them."

Coca-Cola was also slow to respond to a case of contamination in Belgium in 1999 when dozens of school children were sent to hospital.

"It cost them hugely in terms of the cost of the recall, lost sales, damaged reputation and share prices falls. But ultimately it is still a very strong brand," said Insignia's Hemus.

Toyota's efforts to regain lost trust will depend on its ability to cooperate with regulators, which it has pledged to do.

The auto giant will also face the arduous task of renewing ties with the political world and the media, as well as stakeholders, dealers, suppliers and motorists, experts warned.

"Toyota has lost the moral high ground in this issue and will need to find a way to ensure that safety remains its number one priority," said Ray Rudowski, of management consultancy Hill and Knowlton in Hong Kong.

Toyota gave the impression of being a "slow, secretive company that may be sitting on a bigger problem," he said.

"That's a tough impression to shake off without serious and very transparent structural changes within the organisation itself," he added.

Hemus said Toyota must shake off its smugness, which it enjoyed for decades as a quality company and as it surpassed US rival General Motors in 2008 as the largest automaker in the world.

"The worst thing Toyota could do would be to simply breathe a huge sigh of relief when this immediate crisis ends and just continue with business as normal," Hemus said.

"It was clearly business as normal which allowed this crisis to happen."

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Electric Cars Moving From Prototype to Showroom - New York Times

Posted: 28 Feb 2010 01:14 PM PST

FRANKFURT — Gherardo Corsini, director of electric vehicle implementation at General Motors' Opel/Vauxhall unit, made his way Sunday to Geneva from Germany more quietly than most. He was at the wheel of a prototype of the Opel Ampera.

"Getting lots of curious looks at the rest area," one of Mr. Corsini's passengers, Dietmar Thate, manager of social media for Opel, tweeted after the car made a short stop Sunday.

The hybrid car, which will be put on display this week at the Geneva International Auto Show, is designed to run on batteries for about 60 kilometers, or 35 miles, before a gasoline-powered generator kicks in for longer trips.

Opel has displayed the Ampera at previous auto shows. But this time, the message — underscored by Mr. Corsini's 560-kilometer road trip — is that the darn thing actually works.

One of the big themes of the Geneva show, which opens to the media Tuesday and to the public Thursday and runs through March 14, is that electric-powered vehicles are moving inexorably from prototypes to actual production — whether the auto-buying public is ready or not.

"The time is past when companies only displayed studies," said Ferdinand Dudenhöffer, director of the Center for Automotive Research at the University of Duisburg-Essen in Duisburg, Germany. "Now the industry is moving toward hard facts."

But the shift toward electric vehicles also represents a huge leap of faith for the automakers, especially as they emerge from a devastating industry downturn. To be able to produce electric cars in a few years, they must invest billions now without knowing how large the market will be.

In addition, there is no consensus on what kind of technology will prevail. The possibilities include pure battery power, some combination of batteries and internal combustion engines and more exotic solutions like hydrogen fuel cells.

"Right now, car companies don't quite know what technology to bet on," said Peter Wells, co-director of the Center for Automotive Industry Research at Cardiff University in Wales. "It's probably not safe to bet on just one."

Pushed by governments eager to do something about global warming and fearful of missing a technology shift, companies are moving ahead anyway.

Opel, which already has its hands full trying to regain market share in Europe from Volkswagen and Ford, is scheduled to start commercial production of the Ampera — a cousin of the Chevrolet Volt — near the end of next year in Rüsselsheim, Germany. BMW said last week that it would produce an electric vehicle made partly with lightweight carbon fiber at its existing plant in Leipzig, with market introduction no later than 2015.

Toyota, even as it struggles to repair a reputation battered by unintended acceleration in some models, is scheduled to show the latest prototype of its plug-in Prius hybrid in Geneva. The car will be able to travel 25 kilometers solely on battery power and is expected to hit the market in 2011.

A few all-electric cars are already on the market or nearly so in limited numbers. And some industry experts believe that such vehicles present an opportunity for carmakers to create a new market among well-heeled, environmentally conscious buyers.

"Interesting customer segments are waiting desperately in some cases for these products," said Gregor Matthies, a partner at the consultant Bain & Co. in Munich.

In November, Daimler began producing small numbers of battery-powered versions of its two-seat Smart car in Hambach, France. The company has said it plans to produce 20,000 a year, beginning in 2012.

Mitsubishi's MiEV, already in Japanese showrooms, is scheduled to be available in Europe later this year. Nissan plans to introduce its Leaf in the United States, Europe and Japan in December.

Even sports car makers, bastions of internal combustion, are moving tentatively toward electric power.

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Life After Hewlett-Packard: Tech giant's local alums bring skills ... - TMCnet

Posted: 28 Feb 2010 02:18 PM PST

Feb 28, 2010 (The Columbian - McClatchy-Tribune Information Services via COMTEX) -- Hewlett-Packard Co.'s future in Vancouver may be uncertain, but the high-tech company's presence here will undoubtedly have a lasting effect on the local economy.

The Palo Alto, Calif.-based company has downsized its Vancouver Imaging and Printing Division from a peak of more than 3,000 workers in 1998 to an estimated 600 in 2009. With the sale of its 174-acre campus in east Vancouver to SEH America Inc. last June, there's speculation within the community that HP would leave the area altogether.

"Nobody knows what the long-term trajectory is," said Bart Phillips, president of the Columbia River Economic Development Council. "We hope they'll maintain their presence, but if you look at any community, there's a life-cycle of companies. They grow, develop and then disappear." As different companies and industries cycle through prominence in Clark County, due to the recent recession and the long-term decline of manufacturing here, they shape the region's vitality.

For many companies, including HP, which has attracted top-notch talent from throughout the U.S. and abroad to work at its Vancouver offices, that legacy seems to be their employees. Many HP workers stay here after leaving HP to start businesses and nonprofit organizations, volunteer or fill openings at other local technology companies.

"I know (HP) folks who have left for higher education, who are starting businesses from marketing consulting to family mediation," said Paul Speer, a former vice president of development strategy at HP who now works pro bono for SCORE in Portland, offering small-business counseling. "A bunch of us were at a point in our careers where we felt giving back to the community was a good deal." The Columbian followed up with several former HP employees to trace the company's long-term contribution to the community. A new weekly business section feature on Fridays called "You're Hired!" will also continue to tap the pulse of the county's changing economy by highlighting job transitions that workers make in a variety of industries.

Manlio Castillo Science Technology Engineering and Math (STEM) coach, WorkSource Vancouver Mechanical engineer at HP, 2003-2009 As chance would have it, Manlio Castillo applied for his job as a career counselor the week before he was laid off from Hewlett-Packard. Last February, the mechanical engineer stumbled on the posting for a Science Technology Engineering and Math (STEM) coach, working with 16- to 24-year-old students and dislocated workers interested in technical careers. He thought it sounded like an ideal job.

He landed an interview, but the agency hired someone else initially. The former Boeing engineer had worked on the International Space Station before his job in research and development on the paper path mechanism for HP's inkjet printers. But he'd never worked with kids.

After his last month at HP in March, Castillo started collecting unemployment benefits and half-heartedly looking for engineering jobs.

"I wanted to do something tangible for my community," Castillo said.

Then, in June, Worksource called him back with a job offer.

WorkSource in March was among several regional recipients for a portion of a $2 million federal stimulus grant to help boost the pool of workers available for science and engineering jobs in Southwest Washington and Oregon.

Castillo helps workers laid off from jobs in declining industries, such as pulp and paper mills, find training or employment in other technical careers such as construction, machining, auto repair and network administration.

He also mentors youths through pilot programs at Hudson's Bay and Heritage high schools in Vancouver. The kids get one-on-one career counseling from him, including help finding financial aid for a training program or college, writing a resume or filling out applications.

But the fun part for Castillo is helping the kids get excited to learn new skills.

"Kids who do well in science and math classes do well in these fields," said Castillo. "I encourage kids to take more of these classes." Bill Huseby President, Sigma Design, Inc.

HP engineer and manager, 1981-1997 Some 13 out of the 30 employees at Sigma Design in Vancouver are HP alums, recruited by president and former HP hardware engineer and manager Bill Huseby. And at least five of his engineers are contractors working in-house at HP.

So it's no surprise that HP culture permeates Sigma, which also counts other large regional players in the high-tech industry, including Cadet Manufacturing, Electro Scientific Industries and RS Medical, among its clients for consumer product design. More than a decade ago, Huseby left HP to found the small engineering firm based on the business principles he learned in his 16 years there.

"I did my professional adolescence at HP," Huseby said. "It made me who I am from a business perspective." He has since tried hard to replicate the "heyday" of HP, before a change in the company's management led to massive restructuring, layoffs and a shift to a stronger corporate culture.

"The old HP was a coveted place to work. I was certainly proud to work there," Huseby said. "I still have a soft spot in my heart for HP." Central to that early culture was the mentality that its employees were its No. 1 asset, Huseby said. He has also adopted a cautious approach to growth, hiring only when there was enough contract work to justify it and avoiding debt.

As a result, 2009 was Sigma's best year yet, Huseby said. The company worked to diversify its client base and is doing more work in Asia out of its Singapore offices. Sigma is now hunting for a larger office space in downtown Vancouver to accommodate its growth.

Dennis Hoff Bamboo product manager, Wacom HP marketing manager, 1970-2006 After almost 37 years at HP, Dennis Hoff decided to take a buyout a few years ago and within two months went to work for Wacom, another high-tech titan with American headquarters in Vancouver.

"It was a very attractive severance package," Hoff said, smiling. "Much better than what they offer now." As a vice president of international marketing for HP, Hoff lived in Singapore, Australia and New Zealand managing the company's DeskJet business. But the company underwent a major shift in management and strategy starting with CEO Carly Fiorina in 1999 and followed by CEO Mark Hurd in 2005. After cutting back on hardware engineering and product design, the company now includes a stronger focus on information and business services.

"HP was very employee-friendly and then they began to do layoffs and the whole environment just became more difficult to thrive in for the old-timers," Hoff said. "The company today is very strong and very well-managed. But for me, it was an opportunity to do something different." Hoff is now on the leading edge of innovation in touch technology as a product manager at Wacom. His Bamboo line of graphic tablets are used mostly by designers in creative industries. But the underlying touchscreen technology is used in a range of products sold by major manufacturers, including cell phones, computer tablets and home appliances.

Hoff credits HP's abundant employee career training opportunities for the continued success of himself and his former colleagues. Most of the HP co-workers he's kept in touch with have stayed in the Vancouver-Portland area after leaving the company, he said.

"They were always being prepared for other careers; the whole county benefits from an employer like that," Hoff said. "Whether HP stays or goes, they leave behind a positive impact on the community." Doug Vaughan Founder, Snap Fitness in Woodland VP of integrated marketing and communications at HP, 1995-2009 The first Snap Fitness gym opened in Woodland in October, a short eight months after founder Doug Vaughan left his job as vice president of marketing at Hewlett-Packard. And the new franchise of small, local gyms has plans to add two more locations in Southwest Washington in the next few months.

"There were a lot of changes that had happened at HP and it was a much different company than I joined several years ago," Vaughan said. "It didn't seem as fit and as aligned to me individually, and I'd always dreamed of owning my own business." Fitness is a central part of Vaughan's life, so he did a complete market analysis of Clark and Cowlitz counties and found a growing demand for fitness services in the communities surrounding Vancouver. Many outlying residents travel to Vancouver to use modern, professional equipment, he said.

Snap Fitness offers large gym amenities with personalized, small-gym services in outlying neighborhoods.

"It's a completely different business, but I got that strong marketing background in HP and applied it to the fitness industry," Vaughan said.

The community response to the Woodland location has been "overwhelming," and the company is now a year ahead of schedule in its original business plan, Vaughan said. Choosing the right location, in a high-traffic area at 1307 Lewis River Road, was critical, along with targeted marketing efforts, he said.

"One of the things I brought into my life (from HP) is knowing you can't just open your doors and expect people to walk in," Vaughan said. "You need to get the word out." Dave Frei and Jennifer Corio Founders, Cobalt Designworks in Vancouver Frei, mechanical engineer 1993-2008; Corio, product manager 1996-2001 Husband and wife Dave Frei and Jennifer Corio met at Hewlett-Packard in the 1990s where he worked as a mechanical engineer on HP's DeskJet printers for 15 years and she was a product manager.

These days, they're designing and fabricating a driveway gate for a lavender farm in Woodinville and deck railings for a remodeling project in northeast Portland, and working on a public art commission for the city of Bremerton.

During a leave of absence from the company about 10 years ago, Corio took classes in art and metalworking and got hooked. Frei, who grew up working on race cars and trailers, often found himself offering technical advice on her projects.

When HP offered Frei a buyout two years ago, the couple seized the opportunity to start Cobalt Designworks in Vancouver, an artisan shop that creates custom metalwork for builders and remodelers. Frei does the fabrication and welding while Corio designs pieces and manages the business.

Founded in the midst of the economic collapse, the company's first few years have been shaky, Frei said. But it's given them time to fine-tune the business, which is starting to pick up again.

"HP isn't a directive-type company; they set an objective, put quality people on it and get out of the way," Frei said. "It put in my mind as long as we set our objectives and work toward them and learn as we go, I feel comfortable we have the skills to get there." To see more of The Columbian, or to subscribe to the newspaper, go to http://www.columbian.com. Copyright (c) 2010, The Columbian, Vancouver, Wash.

Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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Statehouse Insider: Young Republicans express vitriol early - Desert Sun

Posted: 28 Feb 2010 12:52 PM PST

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The club didn't release any critiques on those candidates' respective challengers.

Week of deadlines

Speaking of the 37th race, Monday is the last day for candidates to file the paperwork needed to qualify for the April 13 ballot.

Thirteen candidates have expressed interest in succeeding Benoit. According to the county registrar, American Independent candidate Matt Monica and Democrat Anna Nevenic have already qualified.

Republicans have paid close attention to Bogh and Emmerson, while Democrat clubs are focusing on Justin Blake and Arthur Bravo Guerrero.

Officials on Tuesday will randomly choose the candidates' order on the ballot. And by Thursday, we'll have insight into their fundraising efforts.

Local honorees

Assembly members last week named their choices for the annual Woman of the Year honors:

• To represent the 64th district, Nestande has named philanthropist Peggy Cravens of Rancho Mirage.

Cravens is involved in many nonprofit and civic organizations, and she and her husband are the namesakes behind the student services center that's under construction at College of the Desert.

• From the 80th, Assemblyman V. Manuel Pérez is honoring Rosanna Bayon Moore of El Centro.

She's on the El Centro Regional Medical Center board of trustees, helped organize the first Imperial Valley Asthma Walk in May and has served on the city council.

The award ceremony will be held March 8 at the Capitol.

New strategy

Riverside attorney Jeffrey Lemasters Tahir, a Republican challenging Nestande this June, is focusing his campaign on the small business vote.

Lemasters Tahir has, in recent weeks, been getting the support of various attorneys' offices, florists, hair stylists and auto repair locations.

"What's happened in California is we've cut out businesses," he said. "The state runs on small businesses and small business owners. If we encourage that activity those are the people that invest in this state and are really going to build up the state."