Toyota suspending shipments of 10 models on testing issues
TOYOTA Motor will temporarily suspend shipments of 10 vehicle models after supplier Toyota Industries disclosed certification problems concerning some diesel engines.
An investigative committee found irregularities during horsepower-output testing that took measurements based on computer modules running software that ultimately differed from the software that was used for mass production, the Japanese carmaker said in a statement on Monday (Jan 29). That resulted in values with less variation, it said.
The certification issue is the latest to beset Toyota, following an announcement by subsidiary Daihatsu Motor last month that most of its vehicles weren’t properly tested for collision safety and that the carmaker manipulated the results of tests dating as far back as 1989. As a result, Daihatsu is halting shipments and suspending operations through at least February.
The misconduct cases “could damage Toyota Industries and, by extension, the Toyota group as a whole,” said Bloomberg Intelligence senior analyst Tatsuo Yoshida.
The committee involved in the Toyota Industries issue found irregularities during horsepower-output testing for three engine models. In total, 10 car models use the engines globally, including six in Japan, according to the company. Those include the Land Cruiser Prado, the Land Cruiser 300, the Fortuner and the Hilux.
The committee had initially been investigating Toyota Industries over certification related to engines used in forklifts. The latest findings came after the probe expanded to additional forklifts and construction machinery engines.
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Irregularities occurred “to avoid a delay in mass production,” Hiroshi Inoue, chair of the Special Investigation Committee, said at a briefing on Monday, adding that “responsibility lies with the higher management.”
Toyota Industries President Koichi Ito said “we weren’t communicating enough with Toyota Motor regarding the test process” after orders increased from 2017. He said he’ll seek to rebuild communications with the parent company. The impact of the scandal on earnings is currently unknown, Ito added.
Japan’s transport ministry will start on-site inspections on Tuesday.
“Going forward, we will be involved in all company-wide activities to help rebuild Toyota Industries and review the situation to thoroughly ensure that safety and quality are the top priorities,” Toyota said of its latest disclosures. BLOOMBERG
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