Toyota Suspends Shipments of Models Due to Certification Irregularities

Toyota Motor has announced the suspension of shipments for certain models, including the Hilux truck and Land Cruiser 300 SUV after irregularities were identified in certification tests for diesel engines developed by affiliate Toyota Industries. 

The irregularities were related to horsepower output testing for certifying three diesel engine models.

Affected Models and Global Impact:

Ten models globally use the affected engines, including the Hiace van, Fortuner SUV, Innova multi-purpose vehicle, and Lexus-branded LX500D SUV. 

Toyota Industries revealed it sold about 840,000 affected automobile engines during the March 31, 2023 financial year. The suspension of shipments is expected to impact various markets where these models are sold.

Investigation Details and Electronic Control Units:

A special investigative committee uncovered irregularities, revealing that electronic control units used during horsepower output testing differed from those used during engine production. 

The investigation suggests a discrepancy in the testing process, raising concerns about the accuracy of certification tests.

This incident comes amid Toyota’s ongoing efforts to address cases of misconduct. The automaker has been working to resolve issues related to rigged collision safety tests at Daihatsu, a small car specialist affiliated with Toyota.

Market Response and Share Movements:

Following the announcement, shares in Toyota Industries experienced a decline, closing down 4%. 

In contrast, Toyota Motor shares closed 3.1% higher, reflecting market reactions to the suspension of shipments and the broader context of the irregularities in certification tests.