Japanese officials are inspecting Toyota's headquarters following a safety test scandal involving multiple automakers, including Toyota, Mazda, Honda, Suzuki, and Yamaha, who submitted incorrect or manipulated safety test data. Toyota has suspended shipments of some models and is reviewing its safety certification processes. The scandal has become a significant issue for Toyota, despite the company stating that it has not violated safety regulations and that customers do not need to stop using their cars.
Japan's transport ministry raided Toyota's headquarters amid a scandal over manipulated safety data, affecting the world's largest carmaker and other Japanese automakers like Honda, Mazda, and Suzuki. Toyota has suspended production of three models and apologized for neglecting proper certification processes. The scandal has led to inspections of other carmakers and halted shipments and production in some cases.
Toyota Chairman Akio Toyoda apologized for safety scandals at three of the company's subsidiaries, including Daihatsu and Hino Motors, while also announcing the suspension of shipments for some Toyota models due to irregularities in safety tests for diesel engines. Despite the scandals, Toyota Motor remained the world's top-selling car manufacturer for the fourth consecutive year, with record annual sales of 11.2 million vehicles in 2023. Daihatsu, one of Toyota's oldest combustion engine manufacturers, temporarily shut down its factories and suspended all vehicle imports and exports after an independent investigation found widespread and systemic issues in safety tests dating back to 1989.
Toyota Motor shares slumped by 4% as Japan's transport ministry inspected its subsidiary, Daihatsu Motor, over safety concerns dating back decades. Daihatsu announced a halt in shipments of all its vehicles indefinitely after discovering more safety-inspection irregularities, affecting 64 models, including those sold under Toyota's brand. The impact on Toyota's earnings is expected to be limited due to the parent company's size, but Daihatsu's suppliers may face a bigger impact. Additionally, Toyota announced a recall of 1.1 million vehicles worldwide due to a faulty sensor that could cause airbags to not deploy properly.
Toyota's subsidiary, Daihatsu, will suspend shipments of all its vehicles in and outside of Japan due to a safety data fabrication scandal. An investigation found improper testing involving 64 models, including Toyota and other brands. The probe revealed 174 new cases of irregularities in safety tests and procedures, in addition to the problems reported earlier. Daihatsu's president apologized for betraying customer trust and acknowledged the neglect of safety certificates. The issue arose in April with improper testing on the door lining, followed by problems in side collision testing in May. Toyota expressed sincere apologies and plans to revitalize Daihatsu through a fundamental reform of operations and employee mindset.
Toyota's Daihatsu unit, responsible for producing small cars and trucks, will halt shipments of all its vehicles after an independent panel investigation revealed safety issues involving 64 models, including some sold under Toyota's brand. The scandal, which initially involved rigged side-collision safety tests, has now expanded to a wider scope and longer timeframe, potentially damaging the automakers' reputation for quality and safety. The issues also affected some Mazda and Subaru models. Toyota stated that "fundamental reform" is necessary to revitalize Daihatsu and that a review of certification operations is needed. The financial impact is yet to be determined.
Toyota's subsidiary, Daihatsu, will halt shipments of all vehicles both domestically and internationally after an investigation revealed safety issues in 64 models, including 22 sold under the Toyota brand. The scandal, which initially involved rigged side-collision safety tests for 88,000 small cars, has now expanded to include almost all models currently in production. The revelations could damage the automakers' reputation for quality and safety, prompting Toyota to call for a "fundamental reform" of Daihatsu's operations. Daihatsu produced 1.1 million vehicles in the first 10 months of the year, accounting for 7% of Toyota's sales.
