Saturday, November 9, 2024

Toyota halts some shipments as Japan’s auto safety scandal widens | CNN Business

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Tokyo — A safety test scandal at Japanese automakers widened Monday, with Toyota Motor and Mazda both halting shipments of some vehicles after Japan’s transport ministry found irregularities in applications to certify certain models.

The irregularities were also found in applications from Honda (HMC), Suzuki and Yamaha Motor, the ministry said. The automakers were found to have submitted incorrect or manipulated safety test data when they applied for certification of the vehicles.

The ministry ordered Toyota (TM), the world’s biggest carmaker by the number of vehicles sold, Mazda and Yamaha to suspend shipments of some vehicles.

The latest revelations came after the ministry asked automakers in January to investigate certification applications following a safety test scandal at Toyota’s Daihatsu compact car unit that emerged last year.

Monday’s developments are also likely to heighten focus on Toyota’s annual general meeting later this month. Influential proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended shareholders vote against re-electing Akio Toyoda as chairman at the meeting.

In a report to shareholders, ISS singled out the “spate of certification irregularities” at the Toyota Group.

Toyoda, the grandson of the automaker’s founder, told journalists Monday: “As the person in charge of the Toyota Group, I would like to sincerely apologize to our customers, to car fans, and all stakeholders for this.”

He said the cars had not gone through the correct certification process before being sold. Toyota said it had temporarily halted shipments and sales of three car models made in Japan.

The scandals at the automakers are proving to be a sore point for the Japanese government, which has otherwise earned praise from investors and executives for its corporate reforms. Government spokesperson Yoshimasa Hayashi called the misconduct “regrettable.”

Toyota said its wrongdoing had occurred during six different tests conducted in 2014, 2015, and 2020. The models affected were the Corolla Fielder, Corolla Axio and Yaris Cross, and discontinued versions of four popular models, including one sold under the Lexus luxury brand.

In one example, the company had measured collision damage on one side of a model’s hood while it was required to do so on both sides.

Toyota also said it is still investigating issues related to vehicle fuel efficiency and emissions, and aimed to complete that inquiry by the end of June.

It added that there were no performance issues that violated regulations and customers did not need to stop using their cars.

Toyota shares closed down 1.8%, in contrast to a 0.9% gain in the broad Topix index.

Mazda suspended shipments of its Roadster RF sports car and the Mazda2 hatchback from Thursday last week after finding that workers had modified engine control software test results, it said in a statement.

It also found that crash tests of the Atenza and Axela models, which are no longer in production, had been tampered with by using a timer to set off airbags during some frontal collision tests, instead of relying on an on-board sensor to detect a hit.

Mazda shares fell 3.3%.

Yamaha said it had halted shipments of a sports motorcycle.

Honda said it had found wrongdoing in noise and output tests over a period of more than eight years to October 2017 on some two dozen models that are no longer being produced.

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