Toyota Motor, the world’s leading automaker by sales, has announced a suspension in the shipment of several vehicle models, including the popular Hilux truck and Land Cruiser 300 SUV, due to irregularities in diesel engine certification tests. These tests were conducted by Toyota Industries, an affiliate company responsible for developing these engines.
The decision follows the discovery of discrepancies during horsepower output testing for three diesel engine models. This issue affects ten global Toyota models, such as the Hiace van, Fortuner SUV, Innova multi-purpose vehicle, and the Lexus LX500D SUV.
Concurrently, Toyota is addressing a separate issue of misconduct related to falsified collision safety tests at Daihatsu, a small car specialist within the group. The automaker has expressed its commitment to fully disclose details to regulatory authorities and to undertake necessary actions, including conducting new engine certification tests under regulatory supervision.
Koichi Ito, President of Toyota Industries, acknowledged the problem at a press conference, citing insufficient communication and coordination with Toyota Motor regarding the appropriate testing processes and procedures.
During the financial year ending March 31, 2023, Toyota Industries reported the sale of approximately 84,000 diesel engines affected by this issue. However, a Toyota spokesperson was unable to specify the total number of affected vehicles sold over the years.
Toyota has reassured that the engines and vehicles in question meet the required engine performance output standards, despite the investigation revealing the use of different electronic control units in testing compared to those used in actual engine production.
In response to these findings, Japan’s transport ministry plans to conduct an on-site investigation at Toyota Industries’ Hekinan plant in Aichi prefecture, where the company manufactures automotive and industrial engines.
The investigation initially concentrated on certification regulations concerning emissions performance of engines used in forklifts and construction machinery, where misdoings were also confirmed by the special investigative committee.
Toyota holds approximately a 25% stake in Toyota Industries, a key entity in the Toyota group. In turn, Toyota Industries owns about 8% of Toyota’s shares. Following the announcement, Toyota Industries’ shares dropped by 4%, while Toyota Motor’s shares closed 3.1% higher.
