TOKYO (Reuters) -Japanese transport ministry officials initiated an on-site investigation at Toyota Motor’s headquarters. Irregularities in certifying certain vehicle models prompted this action.
The fallout over certification tests widens due to a safety test scandal at Toyota’s Daihatsu compact car unit. Other Japanese automakers are also affected by industry-wide checks ordered by the ministry.
Toyota, Mazda, Honda (NYSE:HMC), Suzuki and Yamaha Motor said they had submitted either flawed or manipulated data when applying for certification of vehicles.
Toyota, Japan’s largest automaker, was the first to undergo an inspection which was flagged by the ministry on Monday. The other four automakers will also be inspected, a ministry official said.
While some analysts noted that Toyota will be under more pressure to strengthen governance, others said the impact on sales is likely to be limited given that it is only suspending sales of three models and so many of its domestic rivals also fell short of ministry standards.
“When it comes to actual sales in (the) Japan market, the damage will be manageable or quite small, because consumers basically have no alternatives in Japan,” said James Hong, head of mobility research at Macquarie.
Both Toyota and Mazda suspended sales of some models but said there were no performance issues that violated regulations and customers did not need to stop using their cars.
In light of these developments, Toyota must take immediate corrective actions to rectify the certification irregularities. Failure to address these issues promptly could result in severe consequences for the company’s reputation and market standing.
Additionally, transparency and accountability are paramount in restoring trust among consumers and stakeholders. Therefore, Toyota must prioritize rectifying the certification irregularities to uphold its commitment to quality and compliance.
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