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Knowledge Network: Faculty & Research

Global Mindset: Toyota’s China Blunder

Toyota Prado SUV in ChinaToyota wanted a strong Mandarin name for its Prado SUV in China, but the Japanese automaker quickly regretted its choice of 霸道 (bà-dào) during the 2003 product launch. Donny Huang ’94, the founder and managing partner at 4stones Cross-Cultural Consulting Group, said the word roughly means to rule by might like a tyrant. “I cannot find a truly equivalent word for badao in English,” Huang said March 15, 2012, during the Developing Leaders for Global Roles Summit, a two-day event organized by the Najafi Global Mindset Institute at Thunderbird School of Global Management. “It is like bully behavior.”

Toyota’s ad campaign showed the SUV driving past Chinese stone lions, which salute in respect. Huang said the concept might have worked for a Chinese automaker. “In China, because we are a very hierarchical society, some would think this kind of behavior is positive,” Huang said. “China grows so fast because it has a powerful government.”

But Toyota failed to consider the implications of stone lions saluting a Japanese product in China, where many still resent the Japanese occupation. “The next day on the Internet, you see the stone lions angry,” Huang said. “They are smashing the Badao.”

As the backlash spread, Toyota’s CEO had to fly from Tokyo to Beijing to apologize. “He bowed 90 degrees,” said Huang, who uses the story to show the importance of global mindset.

“Every business mistake — every blunder made — is extremely expensive,” he said. “That’s why we say Thunderbird is a very important place to develop what we call the global mindset.

Video: Toyota’s Global Mindset Blunder in China (2:37)

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13 Responses to “Global Mindset: Toyota’s China Blunder”

  1. wei zheng Says:

    interesting story! lol, China’s “white elephant” 白象电池 battery made the same mistake when goes to western market, they use the same name, but in english, “white elepant” means sothing big and useless…and you can imagine how this brand name ended…

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