Administrative Action against Toyota: Lax Response Caused Delay in Uncovering Fraud

Editorial

15:04 JST, August 2, 2024

It is troubling if Toyota Motor Corp., a company that represents Japanese industry, lacks deep understanding of laws and regulations. The company must take the initiative on measures to prevent further irregularities so as not to erode confidence in Japanese vehicles.

The Land, Infrastructure, Transport and Tourism Ministry announced that it has confirmed additional irregularities in seven Toyota models, including the RAV4 and Harrier, in connection with testing related to model certification required for the mass production of automobiles. Based on its findings, the ministry has issued a corrective order to Toyota under the Road Transport Vehicle Law demanding the company prevent further incidents.

On July 5, Toyota announced the results of an internal investigation, finding no irregularities in model certification tests other than those already made public. However, with a subsequent on-site inspection by the ministry, fraudulent practices have expanded to a total of 14. This is said to be the first time that Toyota itself has received a corrective order.

Model certification is a system under which the government examines whether a vehicle meets safety performance and other standards before it is put on the market. Once a particular model obtains certification, the vehicle maker does not need to undergo a governmental inspection for each individual unit, on the assumption that the maker conducts proper testing.

Toyota’s management, which allowed the fraudulent practices, needs to realize the weight of responsibility borne by a manufacturer.

In many cases, Toyota’s fraud was to use in tests auto parts, such as steering wheels and door frames, with different specifications from those used in mass-produced vehicles. Toyota claims that there are no safety problems with any model.

Even if Toyota did not intend to disguise cars with insufficient performance as safe, it is obvious that the company violated laws and regulations if it did not follow the procedures established by the government.

In the first place, certification fraud is a problem that has occurred repeatedly in the Toyota Group. It was uncovered at Hino Motors Ltd. in March 2022 and Daihatsu Motor Co. in March last year. Both firms received a corrective order from the government.

In January this year, Toyota Chairman Akio Toyoda said that there were no irregularities at Toyota itself “as far as I know.” However, the fraudulent practices were discovered in June, and now the ministry’s on-site inspection has found more instances of fraud.

“We were naive about what was happening. It was not an intentional cover-up,” explained Toyota President Koji Sato. However, Toyota should clarify why the company overlooked the misconduct.

The speed of new automobile development is increasing and competition is intensifying worldwide. In some cases, performance that exceeds the government’s certification standards may be needed. Chairman Toyoda has suggested there is a gap between the actual situation on the front lines of development and the certification system.

It would be a great loss if trust in Japanese automobiles were to be damaged by manufacturers’ violations of the laws and regulations related to certification procedures. It is hoped that the government will consider rebuilding the certification system in line with the times.

(From The Yomiuri Shimbun, Aug. 2, 2024)