Government Raids Toyota Headquarters Following Chairman’s Acknowledgement of Failure to Implement Safety Measures

Japanese government officials are combing the headquarters of Toyota after reports emerged that Toyota and other Japanese carmakers cut corners and submitted faulty safety data.

Japan’s Ministry of Transport said its investigation at Toyota’s headquarters will last for several days, according to CNN.

On Monday, Toyota’s chairman said cars had not gone through proper safety inspections before being sold, CNN reported.

The scandal comes as the world’s biggest carmaker by sales grapples with growing concerns over the certification of some of its vehicles, according to the BBC.

Toyota has suspended making three models – the Corolla Fielder, Corolla Axio and Yaris Cross.

On Monday, Toyota Chairman Akio Toyoda apologized to customers and car enthusiasts. He bowed deeply in a public apology.

Toyota Chairman Akio Toyoda apologized Monday for massive cheating on certification tests for seven vehicle models as the automaker suspended production of three of them. https://t.co/wTFoLg6C3F

— WFAA (@wfaa) June 3, 2024

“We neglected the certification process and mass produced our cars without first taking the proper precautionary steps,” he said, according to the BBC.

The scandal has mushroomed beyond Toyota, according to The New York Times.

Honda, Mazda, Suzuki and Yamaha all admitted that they had cut corners in submitting safety data about their vehicles in the past decade  Although the carmakers have said their vehicles are safe despite the data, Mazda has suspended sales of two models sold only in Japan.

The vehicles involved were all sold in Japan, the Times reported.

The scandal’s roots came in December when Daihatsu, a Toyota subsidiary, said most of its vehicles did not undergo proper collision testing, according to the Times. Another Toyota unit followed that by saying it faked data about engine power, the Times reported.

Japan’s transport ministry then ordered multiple companies to investigate their testing processes.

Satoru Aoyama, a senior director at Fitch Ratings, told the Times the issue may be as much perception as actual car quality.

“Given that vehicle safety and performance isn’t impacted, this latest revelation isn’t hugely critical for the companies involved,” he said

“There has long been a perception of the superior manufacturing and quality of Japanese products and with these instances of fraud appearing again and again, perceptions may be beginning to change,” he said.

On Monday, Toyoda tried to nip consumer fears in the bud.

“These acts shake the very foundation of the verification system,” he said. “They should have never been committed.”

“We will carry out concrete improvements.”