Toyota halts some shipments as Japan’s auto safety scandal widens
What actions did the Japanese transport ministry take against Toyota, Mazda, and Yamaha following the discovery of these irregularities?
The Japanese transport ministry found irregularities in applications to certify certain models from Toyota, Mazda, and Yamaha. As a result, the ministry ordered Toyota, Mazda, and Yamaha to suspend shipments of some vehicles affected by the incorrect or manipulated safety test data. This action was taken to ensure the safety and compliance of the vehicles before they are sold to customers.
How are Toyota's recent safety test scandals likely to impact the upcoming annual general meeting and the re-election of Akio Toyoda as chairman?
The recent safety test scandals involving Toyota are likely to have a significant impact on the upcoming annual general meeting and the re-election of Akio Toyoda as chairman. Influential proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended shareholders vote against re-electing Toyoda as chairman at the meeting. This comes as a report to shareholders by ISS singled out the "spate of certification irregularities" at the Toyota Group.
The developments are expected to heighten the focus on Toyota's annual general meeting, with shareholders possibly questioning the company's management and oversight in light of the scandals. Akio Toyoda, the grandson of the automaker's founder, has apologized for the irregularities and promised to address the issues. However, it remains to be seen how the shareholders will react during the meeting and whether the scandals will ultimately impact Toyoda's re-election as chairman.
What specific irregularities were found in the certification applications submitted by Toyota, Mazda, and other automakers according to Japan's transport ministry?
According to Japan's transport ministry, specific irregularities found in the certification applications submitted by Toyota, Mazda, and other automakers included the submission of incorrect or manipulated safety test data3. Toyota was found to have conducted certain tests under more strict conditions than those set out by the ministry, measured collision damage on one side of a model's hood instead of both, and had issues related to vehicle fuel efficiency and emissions. Mazda was found to have modified engine control software test results and tampered with crash tests by using a timer to set off airbags during some frontal collision tests. Yamaha halted shipments of a sports motorcycle due to irregularities. Honda reported wrongdoing in noise and output tests over a period of more than eight years on some two dozen models that are no longer being produced.