Japanese transport ministry officials initiated an on-site inquiry at Toyota Motor’s headquarters on Tuesday after anomalies were discovered in the company’s applications to certify specific car models.
The growing controversy over certification testing derives from a safety test scandal at Toyota’s Daihatsu tiny car division, which has also implicated other Japanese automakers after the government requested an industry-wide review of certification methods.
Toyota, Japan’s largest automaker, was the first to undergo the examination, which was announced by the government on Monday. A ministry spokesperson said that the other four automakers would also be inspected.
While some analysts believe Toyota will face further pressure to improve governance, others believe the impact on sales would be limited because it is only delaying sales of three models and many of its domestic rivals also failed to meet ministry criteria.
“When it comes to actual sales in (the) Japan market, the damage will be manageable or quite small, because consumers basically have no alternatives in Japan,” said James Hong, head of mobility research for Macquarie.
Hong noted that Toyota Chairman Akio Toyoda is expected to face increased pressure. Institutional Shareholder Services and Glass Lewis, proxy consulting firms, have suggested that shareholders vote against Toyoda’s re-election at the forthcoming annual general meeting.
Toyota and Mazda both banned sales of some models, but claimed there were no performance issues that breached standards and that consumers may continue to use their vehicles.
Toyota provided examples of misconduct such as assessing collision damage on one side of a model’s hood when it was obliged to do so on all sides, as well as conducting some tests under more stringent conditions than those specified by the ministry but failing to fulfill government standards.
Safety test scandals have previously led to production halts at Toyota group firms, and the latest findings may affect production at subcontractors and smaller companies in Japan’s massive automotive supply chain.
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