Toyota Motor to Halt Shipments of Diesel Models Due to Certification Test Irregularities

After uncovering irregular certification tests for diesel engines developed by affiliate Toyota Industries, Toyota Motor announced that it would suspend shipments of specific models, including the Hilux truck and Land Cruiser 300 SUV. The discovery was made through the diligent work of a special investigative committee.

Reuters reported that the committee found irregularities during horsepower output testing to certify three diesel engine models.

Affected Models and Global Impact

Toyota identified ten models that use the affected engines globally. These include the Hiace van, Fortuner SUV, Innova multi-purpose vehicle, and the Lexus-branded LX500D SUV. The world's largest automaker by sales company is taking these irregularities seriously. This incident adds to Toyota's ongoing efforts to address issues of misconduct related to previous rigged collision safety tests involving small car specialist Daihatsu.

According to Channel News Asia, Toyota is committed to explaining the matter to relevant authorities and pledges to undertake necessary actions, such as conducting new engine certification tests in the presence of regulators. During a press conference, Toyota Industries President Koichi Ito acknowledged the lack of communication and coordination regarding testing processes and procedures.

Sales and Performance Standards

Toyota Industries has disclosed that approximately 84,000 diesel engines affected by this issue were sold during the financial year ending March 31, 2023. However, the number of affected vehicles sold by Toyota over the years is currently unknown. Despite the irregularities, Toyota asserts that the affected engines and vehicles still meet the required engine performance output standards.

The investigation revealed that the electronic control units used during horsepower output testing differed from those used during engine production. The special investigative committee also confirmed misconduct related to certification regulations for emissions performance of forklift and construction machinery engines.

Japan's transport ministry plans to conduct an on-site investigation at Toyota Industries' Hekinan plant in central Aichi prefecture. The inquiry will focus on the company's production of automotive and industrial engines.

Toyota Industries, a key Toyota group company, experienced a downturn in shares following the news. The company holds a nearly 25% stake in Toyota and, in return, Toyota Industries has an approximately 8% stake in Toyota.

Toyota Industries shares ended the day down by 4%, while Toyota Motor shares closed 3.1% higher.

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