The safety certification scandal engulfing Japan’s automotive giants has taken a new turn as the Japanese government initiated an on-site investigation into Toyota’s headquarters. This move follows revelations that Toyota, along with Mazda, Honda, Suzuki, and Yamaha, submitted incorrect or manipulated safety test data for vehicle certification. Toyota has acknowledged the certification of seven models, including the Corolla Fielder, Corolla Axio, and Yaris Cross, did not follow the proper procedures. Consequently, the company has halted sales of these models and seen a decline in its stock price amid a broader impact on the industry and a crisis of trust within the sector that has been known for its reliability and safety standards and is now facing shareholder pressure and public criticism for these malpractices. Honda has also discovered irregularities in noise and power tests for 24 models over an eight-year period and Yamaha’s motorcycle shipments have been affected as well. The scandal has raised concerns about the quality and safety of Japanese vehicles, with some shareholders calling for the resignation of the CEO. Meanwhile, Toyota has announced a new strategy to develop gasoline engines for hybrid configurations, despite the global trend toward electric vehicles. This comes as Tesla’s sales in China have increased, and Chinese-made electric vehicle registrations have surged in Europe. However, Great Wall Motor, a Chinese electric vehicle manufacturer, is closing its European headquarters due to tariff threats and declining demand, illustrating the volatility within the global automotive market.
Key points
- Japanese government investigates Toyota’s headquarters amid vehicle safety certification scandal.
- Shares of Toyota and other Japanese automakers fall as safety test manipulation scandal deepens.
- Toyota admits to incorrect safety test certifications for seven models; halts sales.
- Honda and Yamaha also implicated in the scandal, with Honda finding irregularities in tests for 24 models.
- Toyota announces development of new gasoline engines for hybrid vehicles, bucking the electric vehicle trend.
