Japan's Ministry Conducts Surprise Inspection at Toyota Over Safety Data Falsification

On June 4, 2024, Japan's Ministry of Land, Infrastructure, Transport, and Tourism conducted a surprise inspection at Toyota's headquarters in central Japan. This inspection was part of a broader investigation into alleged safety data falsification and other serious misconduct involving multiple Japanese automakers.

The inspection is part of a wider probe into safety test scandals at several automakers, including Toyota, Mazda, Honda, Suzuki, and Yamaha. The ministry has found that these companies submitted incorrect or manipulated safety test data when applying for vehicle certification.

Toyota's internal investigation revealed that at least seven of its models, some discontinued, were tested using methods that differed from government standards. The company is specifically investigating issues related to pedestrian and occupant protection tests and errors in crash tests.

Koji Endo of SBI Securities commented on the situation, noting that Japan's certification tests are very stringent and much stricter than in other countries. He mentioned that Toyota has conducted hundreds of thousands of tests over the past 15 years, with only a few conducted improperly. "Japan's certification tests are very stringent and much stricter than in other countries... We have to remember Toyota has conducted hundreds of thousands if not millions of tests throughout the past 15 years. And of those tests, there were only concerns about how three or four of those tests were conducted. That's very little," Endo said.

Why this matters: This scandal has significant implications for the Japanese automotive industry, highlighting the need for stricter oversight and transparent certification processes. If left unchecked, it could lead to a loss of consumer trust and potentially compromise vehicle safety.

Toyota has suspended shipments of three models, including the Corolla Fielder, Corolla Axio, and Yaris Cross, following the irregularities found in certification tests. Operations at Toyota's factories will not be halted during the probe, but production of the three models under investigation will pause.

Akio Toyoda, Toyota's chairman, issued an apology for the problems, stating, "I intend to extend our efforts throughout the entire group and restore authority on site to create a solid corporate culture that makes ever-better cars."

The scandal's origins trace back to Toyota's affiliate, Daihatsu, which admitted to forging safety test results for over 30 years. This admission led to industry-wide checks of certification practices, uncovering similar issues at other automakers.

The Ministry of Transport will conduct on-site inspections at the facilities of the other implicated automakers: Mazda, Honda, Suzuki, and Yamaha. Each of these companies has admitted to submitting incorrect data, and some have already suspended shipments of certain models.

In January 2024, Toyota announced it would suspend shipments of certain models after finding irregularities in certification tests for diesel engines developed by its affiliate, Toyota Industries. Additionally, a month before the June inspection, Daihatsu halted domestic production after admitting to forging safety test results.

The broader implications of this scandal extend beyond Toyota, highlighting significant challenges within the Japanese automotive industry. The incident highlights the need for stringent oversight and transparent certification processes to ensure vehicle safety and maintain consumer trust.

Key Takeaways

• Japan's Ministry of Land inspected Toyota's HQ over safety data falsification allegations.
• Toyota found 7 models with improper testing, including pedestrian and occupant protection tests.
• Suspended shipments of 3 models: Corolla Fielder, Corolla Axio, and Yaris Cross.
• Other Japanese automakers (Mazda, Honda, Suzuki, Yamaha) also implicated in safety test scandals.
• Scandal highlights need for stricter oversight and transparent certification processes.