Toyota Faces Government Sanctions Over Certification Scandal

Toyota Motor Corp TM received a correction order from Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), urging drastic reforms to ensure proper certification operations.

The order comes after the Japanese government’s on-site investigation revealed improper certification processes for seven car models, reported Bloomberg.

The investigation highlighted extensive and intentional irregularities in the certification process, leading to an embarrassing situation for the automaker.

It was found the incidents were caused by both on-site and management factors.

Four of the seven models are currently in production, and six have been sold internationally. The Japanese transport ministry has contacted relevant agencies in other countries to verify the safety of these vehicles.

The models in question include the RAV4 and Harrier SUVs, Noah and Lexus LM minivans, and the Prius. The ministry has ordered Toyota to submit a plan for countermeasures within a month.

These new cases bring the total number of scrutinized Toyota models to 14, contradicting an earlier internal probe that found no additional issues.

Also Read: Toyota Expands EV Production With New Fukuoka Battery Plant: Report

Toyota acknowledged its failure to properly conduct certification operations, apologizing to stakeholders for any concern or inconvenience caused.

In response, Toyota plans to review its structure and system to ensure correct certification operations, clarify responsibilities and authority within the certification process, and improve infrastructure, including accurate data management.

The issue is part of a broader investigation into vehicle certifications across five Japanese automakers, triggered by scandals at Toyota subsidiaries in December.

In June, the transport ministry suspended shipments of six vehicles, including three Toyota models, due to faulty data and modified test vehicles used during safety tests. These models have since resumed production.

Price Action: TM shares are trading higher by 0.20% at $193.50 at last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Toyota RAV4 via Shutterstock