Toyota Motor (7203.T) has announced the suspension of shipments for several vehicle models, including the Hilux truck and Land Cruiser 300 SUV.
This decision comes in light of irregularities discovered during certification tests for diesel engines developed by Toyota Industries (6201.T), an affiliate of Toyota Motor.
A special investigative committee uncovered irregularities during the certification tests, specifically in horsepower output testing for three diesel engine models.
These irregularities affect ten global vehicle models, such as the Hiace van, Fortuner SUV, Innova multi-purpose vehicle, and the Lexus-branded LX500D SUV.
Toyota, the world’s largest automaker by sales, has been grappling with misconduct issues, including rigged collision safety tests at Daihatsu, a small car specialist.
The company is committed to addressing these issues and ensuring compliance with regulations.
They intend to fully explain the matter to authorities and are prepared to conduct new engine certification tests in the presence of regulators if necessary.
Koichi Ito, President of Toyota Industries, acknowledged that there was a lack of communication with Toyota Motor and insufficient coordination regarding testing processes and procedures.
This oversight has led to the suspension of shipments and disrupted production in Japan. However, the company has confirmed that the affected engines and vehicles still meet engine performance output standards.
During the fiscal year ending March 31, 2023, Toyota Industries sold approximately 84,000 affected diesel engines.
Toyota CEO Koji Sato revealed that 36,000 of these engines are used worldwide each month, totaling 432,000 units annually.
The exact number of affected vehicles sold over the years remains unspecified.
Japan’s transport ministry plans to conduct an on-site investigation at Toyota Industries’ Hekinan plant in central Aichi prefecture, where automotive and industrial engines are produced.
The investigation initially focused on certification regulations related to emissions performance for forklift and construction machinery engines, with the special investigative committee confirming wrongdoing.
Toyota Industries holds a significant stake of nearly 25% in Toyota, a key company within the Toyota group. In turn, Toyota Industries owns approximately 8% of Toyota shares.
Following this announcement, Toyota Industries’ shares saw a 4% decline, while Toyota Motor’s shares closed 3.1% higher.
The company is committed to rectifying these issues, ensuring compliance, and maintaining the trust of its customers and stakeholders.