Aug 03, 2024 Leave a message

Toyota Faces New Certification Violation Scandal, Citing Management Oversight

According to various international reports, Toyota Motor Corporation announced on Wednesday, July 31st, that it would cease sales of its Noah and Voxy multi-purpose vehicles in Japan following the latest findings from the Japanese Ministry of Transport. On the same day, the Ministry issued a correction order to Toyota, instructing the company to implement major reforms.

Toyota stated, "We deeply regret our failure to properly carry out vehicle certifications and will continue to take appropriate measures in all cases."

Previously, inspectors from the Japanese Ministry of Transport conducted an on-site investigation at a Toyota factory and discovered several instances of improper vehicle certification and other irregularities. Specifically, inspectors identified eight new procedural violations affecting seven models.

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In addition to the Noah and Voxy, other Toyota models found to have received improper certification include the 2015 Lexus RX, 2017 RAV4, 2017 Camry, 2022 Harrier crossover, and 2023 Lexus LM.

For these models, Toyota conducted inappropriate tests related to occupant protection devices associated with navigation displays. The company admitted to using non-production parts for testing. "Shipments of the affected models were suspended on July 29, with no definite timeline for resumption."

Toyota attributed the issue to negligence by both on-site staff and management, citing unclear internal operational rules for preparing certification documents and a lack of awareness regarding the importance of certification. The company admitted, "Management lacks sufficient understanding and involvement in the certification process."

It is noteworthy that Japanese automakers have a history of certification violations. On June 3rd, Toyota, Mazda, Honda, and Suzuki issued statements acknowledging that they did not conduct vehicle tests according to the certification standards of the Japanese Ministry of Environment. However, this incident is particularly embarrassing for Toyota.

Previously, several companies under the Toyota Group have had certification issues, including truck manufacturing subsidiary Hino, microcar subsidiary Daihatsu, and engine and parts supplier Toyota Industries. Toyota's ongoing misconduct not only tarnishes its image but also distracts it from reviewing past actions, troubleshooting, and correcting problems.

Meanwhile, Toyota's series of scandals have also discontented investors. At the annual shareholders meeting in June, they expressed strong opposition to Toyota Chairman Akio Toyoda, resulting in his support rate dropping to a historic low.

Additionally, the misconduct in early June led to Toyota suspending deliveries of three models on sale, including the Corolla Fielder, Corolla Axio, and Yaris Cross. Consequently, Toyota's global production in June dropped by 13%, potentially impacting its earnings for the first fiscal quarter (April to June) of this financial year.

"After the Japanese Ministry of Transport confirms that the Corolla Fielder, Corolla Axio, and Yaris Cross meet the requirements, production of the affected models is planned to resume in mid-September," Toyota stated on July 31st.

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