Toyota Shocks the World and Suspends Production and Sales of Yaris Cross and Corolla Due to Forgery in Safety Testing

Toyota Shares Evaporate After Fraud Allegations and Suspends Sales of Yaris Cross, Corolla Axio, and Corolla Fielder Due to Falsification in Safety Tests

The world’s largest automaker is facing fraud allegations again, this time related to safety tests. Toyota has suspended sales of the Yaris Cross, Corolla Axio, and Corolla Fielder due to these irregularities.

Japanese authorities discovered, through an investigation, that there are flaws in the tests conducted by manufacturers such as Toyota, failing to meet the standards set by the Tokyo government.

Toyota Suspended Sales of the Yaris Cross, Corolla Axio, and Corolla Fielder.

The Japanese Ministry of Lands, Infrastructure, Transport and Tourism, responsible for the investigation, found problems in seven models, but Toyota only suspended sales of the Yaris Cross, Corolla Axio, and Corolla Fielder.

In addition to these, the MTITT identified irregularities in the Toyota Crown (previous generation), Toyota Isis, and Toyota Sienta, as well as in the Lexus RX (fourth generation), all of which have been discontinued and were also sold illegally.

Inadequate tests for pedestrian and occupant protection, as well as errors in collision tests and other methods, were identified in these models.

For the Corolla Axio and Corolla Fielder models, data from development tests under more rigorous conditions were used to assess head injury to a pedestrian in a collision. By Japanese law, the impact angle must be 50 degrees, but the tests were conducted at 65 degrees.

For the Crown and Isis models, the airbag ignition timer development test for certification was conducted using a method that created more severe collision conditions compared to the certification test.

Manufacturer Used Different Data for Corolla, Sienta, and Crown Models

Toyota used different data for the Corolla, Sienta, and Crown models in tests assessing head and leg injuries of a pedestrian in a collision. It was found that the unilateral data points for both sides were incorrect, instead of taking separate measurements for left and right.

The rear-end collision tests on the Crown and Sienta models failed because Toyota used a heavier moving barrier than required by law, weighing 1.81 tons instead of 1.1 tons.

In the case of the Lexus RX, the engine power verification was approved by the manufacturer even without reaching the intended power. The Yaris Cross failed the luggage shift test over the rear seat, but the standard was revised and no new tests were conducted, using old data.

Toyota assures the owners of these vehicles that “there are no performance issues that violate laws and regulations. Therefore, there is no need to stop using the affected vehicles.” And now, what’s next?

How the Scandal Started?

The situation began when, at the end of January, the Japanese Ministry of Lands, Infrastructure, Transport and Tourism requested automakers to review their certification applications. This action was a response to a controversy involving safety tests at Toyota’s Daihatsu compact car division, which occurred in 2023.

The recent revelation raised concerns at Toyota’s annual general meeting, which will take place at the end of this month. As a result, influential consulting firms Institutional Shareholder Services (ISS) and Glass Lewis recommended that shareholders vote against the re-election of Akio Toyoda as chairman of the company.

The executive admitted that some vehicles did not undergo the proper certification process before being sold. The world’s largest automaker confirmed the temporary suspension of deliveries and sales of three models produced in Japan.

“As the person responsible for the Toyota Group, I would like to sincerely apologize to our customers, car enthusiasts, and all stakeholders for the incident,” Toyoda, the founder’s grandson and former executive director of the automaker, said at a press conference.

Toyota Shares Plummet

Toyota Motor shares fell sharply on Monday (03) after scandals involving the company due to safety issues.

Toyota shares closed down 1.8%, underperforming compared to the 0.9% gain of the Topix index. The automaker stated that it will evaluate financial support and compensations for its suppliers.

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