Tokyo June 3 2024: A safety test scandal at Japanese automakers widened on Monday, with Toyota Motor (7203.T), and Mazda (7261.T), 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 (7267.T), Suzuki (7269.T), and Yamaha Motor (7272.T), 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, Mazda and Yamaha to suspend shipments of some vehicles. It said it will conduct an on-site inspection at Toyota’s central Aichi prefecture headquarters on Tuesday.
The latest revelations came after the ministry requested automakers in late 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.
“As the person in charge of the Toyota Group, I would like to sincerely apologise to our customers, to car fans, and all stakeholders for this,” Toyoda, the grandson of the automaker’s founder and its former chief executive, told a press conference.
He said the cars did not go through the correct certification process before being sold. The world’s biggest automaker by volume said it 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 government, which has otherwise earned praise from investors and executives for its corporate reforms. Yoshimasa Hayashi, Japan’s top government spokesperson, called the misconduct “regrettable”.
