Will other Japanese automakers have to abandon Toyota and Daihatsu to save themselves?
A scandal involving safety tests at Japanese automakers has deepened, prompting Toyota Motor and Mazda to halt shipments of certain vehicles following findings by Japan’s transport ministry. Irregularities were discovered in certification applications submitted by Toyota, Mazda, Honda, Suzuki, and Yamaha Motor.
These companies were found to have provided incorrect or manipulated test data during the certification process. As a result, the ministry ordered Toyota, Mazda, and Yamaha to suspend shipments of affected vehicles and announced plans for an on-site inspection at Toyota’s headquarters in Aichi prefecture.
Moreover, this development follows a previous directive from the ministry in January for automakers to investigate certification applications, stemming from a safety test scandal at Toyota’s Daihatsu unit last year.
The revelations are expected to intensify scrutiny on Toyota at its upcoming annual general meeting, with proxy advisory firms like Institutional Shareholder Services and Glass Lewis recommending shareholders vote against re-electing Chairman Akio Toyoda due to concerns over the certification irregularities.
Toyoda apologised for the lapses, acknowledging that some vehicles were sold without undergoing the correct certification process. Toyota confirmed the wrongdoing occurred during tests conducted between 2014 and 2020, affecting models such as the Corolla Fielder, Corolla Axio, and Yaris Cross, as well as discontinued versions of other popular models including a Lexus variant.
Despite these issues, Toyota assured that there were no performance problems violating regulations, and customers were not advised to stop using their cars. The fallout has not been limited to Toyota alone. Mazda suspended shipments of its Roadster RF sports car and Mazda 2 hatchback after discovering manipulated engine control software test results and tampered crash tests for older models.
Yamaha also halted shipments of a sports motorcycle due to similar irregularities. Honda admitted to wrongdoing in noise and output tests spanning over eight years on two dozen models no longer in production. As a result of these revelations, shares of major automakers and suppliers fell on Monday, with Toyota’s shares closing down 1.8 percent despite a broader market gain.
Looking ahead, Toyota is extending its production halt for affected models through at least the end of July, indicating ongoing efforts to address the issue. The scandal underscores broader concerns about corporate governance and regulatory compliance in Japan’s automotive sector, traditionally a pillar of the country’s industrial reputation.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
