What Is The Toyota Scandal That Forced Carmaker To Halt Shipments Of Some Cars In SE Asian Countries

Toyota Motor Co. has halted the delivery of six car models in specific Southeast Asian countries such as Thailand, Indonesia, Malaysia, Vietnam and Cambodia. This decision is a response to a safety scandal involving its subsidiary, Daihatsu Motor Co. Daihatsu manufactured models like Veloz and Avanza which are among the impacted models. The impact of this decision is anticipated to not be substantial and Toyota is in discussions with the authorities to resume the deliveries. 

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The decision to halt deliveries comes after a safety investigation that revealed problems in 64 models, including almost two dozen sold under the Toyota brand. Japanese transport ministry officials inspected Toyota subsidiary Daihatsu on Thursday, a day after the small car unit announced the suspension of all shipments within and outside Japan.

Earlier this year, a panel investigated safety test irregularities and revealed widespread systematic problems at Daihatsu Motor Co. based in Osaka. This incident contributes to a pattern of safety and other violations found in at least five major Japanese automakers in recent years. Toyota Motor Corp. shared on Wednesday that the Daihatsu probe discovered 174 new instances of irregularities in safety tests and other procedures across 25 test categories. 

Daihatsu's president, Soichiro Okudaira, apologised, admitting a breach of trust with customers. He described the safety testing and procedural lapses as a neglect of safety certificates. “We are sorry to have betrayed the trust of our customers,” said Okudaira. The problem surfaced in April with Daihatsu reporting improper testing on door linings, followed by issues in side collision testing in May, including data falsifications and the use of unauthorised testing procedures. 

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The investigation revealed problems in 64 models and three vehicle engines, affecting models sold by Toyota, Mazda Motor Corp., and Subaru Corp. in Japan, as well as Toyota and Daihatsu models sold internationally. "We believe in order to prevent a recurrence, in addition to a review of certification operations, a fundamental reform is needed to revitalise Daihatsu as a company,” Toyota said in a statement.

(With Agencies Inputs)