Toyota Pledges Stricter Oversight Following Certification Scandal

Toyota outlines measures to prevent recurrence of fraudulent testing. The automaker suspends production of some models, potentially impacting annual output by 500,000 vehicles.

August 9 2024 , 08:46 AM  •  261 views

Toyota Pledges Stricter Oversight Following Certification Scandal

Toyota Motor Corporation, the world's largest automobile manufacturer, has committed to enhancing its vehicle certification process following a recent scandal involving improper testing procedures. The Japanese automaker, founded in 1937, presented a detailed report to the government outlining measures to prevent future occurrences of fraudulent practices.

The company's plan includes increased managerial oversight, additional staff allocation for certification tasks, and clearer delineation of responsibilities for key positions such as chief engineers. This response comes after the Japanese government reprimanded Toyota in July 2024 for widespread testing irregularities.

Two months prior, Toyota admitted to extensive fraudulent testing, including the use of outdated or inadequate data in crash tests, incorrect airbag inflation checks, and inaccurate engine power verifications. The scandal has led to the suspension of production for certain models, potentially reducing Toyota's annual global output by approximately 500,000 vehicles out of its usual 11 million units.

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Akio Toyoda, the company's chairman and grandson of its founder, issued an apology for the misconduct. Despite the severity of the situation, Toyota has assured that the safety of vehicles currently on the road, including popular models like the Corolla and Lexus luxury line, remains unaffected.

Following the initial revelation, further instances of cheating were uncovered, involving certifications for pedestrian protection, side collisions, and steering impact. Toyota acknowledged deficiencies in its certification operations, citing issues with data management systems and the establishment of proper regulations and procedures.

"There were many areas for improvement in the foundation of certification operation, such as the data management system and the establishment of regulations and procedures for the certification operations."

Toyota statement on areas for improvement

The Japanese government's investigation into Toyota began in January 2024, focusing solely on domestic production. Similar fraudulent testing practices have been identified at other Japanese automakers, including Mazda Motor Corp., Honda Motor Co., and Toyota group companies Hino Motors and Daihatsu Motor Co.

This incident has been particularly damaging to Toyota's reputation, given its longstanding commitment to quality control and employee empowerment. The company, known for pioneering the "Just-in-Time" production philosophy and the Toyota Production System, has consistently ranked among the world's most valuable brands and has been at the forefront of automotive innovation, including the introduction of the Prius, the world's first mass-produced hybrid electric vehicle, in 1997.

As Toyota works to rectify these issues, the company continues its focus on research and development, investing heavily in new technologies such as autonomous driving and hydrogen fuel cell vehicles. The automaker's response to this scandal will be crucial in maintaining its position as a leader in the global automotive industry.