In a startling revelation that has sent ripples through the automotive industry, Toyota Motor Corp. has admitted to cheating on engine testing for several of its popular diesel models, including the HiLux, Prado, and LandCruiser. Despite this setback, the company has sold over 11 million vehicles in 2023, retaining its crown as the world’s top car manufacturer. The scandal emerged when Japanese transport officials raided Toyota Industries Corp.’s plant in Hekinan, Aichi Prefecture, following a whistleblower’s exposure of the malpractice.
Toyota Chair Akio Toyoda has taken a firm stance in the wake of the scandal, vowing to navigate the company through these troubled waters and uphold the group’s vision of ‘making good cars that lead to people’s happiness.’ This vision, deeply rooted in the Toyoda founding family’s principles, emphasizes the empowerment of the ‘genba,’ or plant floor workers, in the car-making process. Toyoda’s apology and deep bow during a news conference, which was livestreamed from a memorial hall in Nagoya, underscored his commitment to steering the overall group in the right direction.
The testing scandal has not been the only challenge for Toyota. In April, Daihatsu Motor Corp., a subsidiary of Toyota, was found to have been cheating on its testing for decades. Similarly, Hino Motors, another group company, admitted to falsifying emissions data since 2003. Despite these issues, no major accidents have been reported, and the impact on Toyota’s earnings is expected to be limited, as the sales and profits of these group companies constitute a small fraction of Toyota’s global earnings.
In response to the engine testing irregularities, Toyota has suspended shipments of the affected engines and vehicles. The affected engines include the ‘1GD-FTV’ 2.8-litre, ‘2GD-FTV’ 2.4-litre, and ‘F33A-FTV’ 3.3-litre turbo-diesel engines. The irregularities were discovered when engine control units with different software from mass production were used to smooth out test results. Toyota Australia is currently assessing the impact on local markets, assuring that there is no compromise to the vehicles’ emissions, safety, or drivability.
As Toyota faces these challenges, Toyoda reflects on the humble beginnings of his family business and the importance of invention. He reminds us that Toyota has overcome turbulent times in the past and that it is crucial to ‘never lose sight of where we all began.’ With a history of resilience, Toyota is poised to address these issues head-on, ensuring that safety and quality remain paramount as it moves forward.
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