Toyota, Honda among Japan's automakers hit by testing scandal

Business
By AFP | Jun 03, 2024
Toyota Motor Corporation sign at a car dealership in Nova Scotia, Canada. [iStockphoto]

Toyota said Monday it had suspended domestic shipments of three car models after falling foul of government certification rules along with its Japanese rivals Honda, Mazda, Suzuki and Yamaha.

The transport ministry told the companies to stop delivering certain models within Japan after they reported failures to follow standardised steps to certify vehicles for shipment.

On-site inspections will also be carried out, it said.

The latest irregularities came to light after the ministry told 85 automakers and parts suppliers to report wrongdoing related to certification applications -- an edict prompted by a safety test scandal at Toyota subsidiary Daihatsu.

Daihatsu in December admitted manipulating tests since at least 1989 and halted all factory operations, dealing a blow to the Japanese economy. Its shipments resumed in April after the government lifted a sweeping ban.

"It is extremely regrettable that additional wrongful acts have been revealed," which "undermine the trust of users and shake the very foundation of the vehicle certification system", a ministry statement said on Monday.

Toyota said it would suspend shipping of the Corolla Fielder, Corolla Axio and Yaris Cross after reporting inadequate data in pedestrian and occupant protection tests.

The world's top-selling automaker said ongoing internal reviews had also found four other models no longer in production were "tested using methods that differed from the government standards".

Toyota apologised to its customers but assured them that the vehicles were safe to drive.

Honda said it had found wrongdoing in tests related to noise and engine power, but also stressed that its vehicles were safe and had passed corporate standards.

In recent months, Toyota's truck and bus brand Hino has been hit by a scandal over rigged tests of its engines in Japan.

Meanwhile, its affiliate Toyota Industries did not conduct proper output testing for the certification of three diesel engine models.

Toyota's board chair Akio Toyoda said in January it would "take time to recover the trust back from our customers" and promised to lead a "transformation".

Share this story
Mudavadi urges regulators to boost public trust ahead of Global Trust Summit
Prime CS Mudavadi calls on Kenya’s regulatory institutions to take a leading role in strengthening public confidence in institutions ahead of the Global Trust Summit scheduled for October in Nairobi.
Cooking gas demand jumps despite looming price shock
The government recently increased the Petroleum Development Levy on cooking gas to Sh5.40 per kilogramme from 40 cents, setting up Kenyans for higher costs. 
Banks caught between Ruto's lending push, rising bad loans
President William Ruto has renewed his criticism of Kenya's cash-rich commercial banks, accusing them of denying millions of small businesses access to affordable credit.
KDC lines up Sh18.5 billion funding pipeline for SMEs
The Kenya Development Corporation has unveiled financing programmes worth more than Sh18.5 billion and over Sh51.8 billion aimed at expanding access to long-term capital for businesses.
Price hikes, job cuts loom after new tax on furniture
Kenya's furniture manufacturers have been slapped with a surprise tax on imported wood-based boards in the new Finance Act that they say was without public participation.
.
RECOMMENDED NEWS