The safety testing scandal involving Japanese car manufacturers expanded on Monday, as Toyota and Mazda halted shipments of some vehicles after Japan's Ministry of Transportation found irregularities in certain model certification applications.
The ministry also discovered irregularities in certification applications from Honda, Suzuki, and Yamaha. These car manufacturers submitted incorrect or manipulated test data during vehicle certification applications.
The Ministry of Transportation ordered Toyota, Mazda, and Yamaha to suspend shipments of some vehicles and announced plans to conduct on-site inspections at Toyota's headquarters in Aichi Prefecture on Tuesday.
This latest development follows the Ministry's request in late January for car manufacturers to investigate their certification applications after a safety testing scandal at Toyota subsidiary Daihatsu last year.
Monday's developments could increase attention on Toyota's annual shareholders meeting later this month. Prominent proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the re-election of Akio Toyoda as chairman.
In its report to shareholders, ISS specifically highlighted the "certification irregularities" within the Toyota group.
As the head of the Toyota group, Akio Toyoda sincerely apologized to customers, car enthusiasts, and all stakeholders at a press conference. The grandson of Toyota's founder and former CEO stated that these vehicles were not properly certified before being sold. Toyota, the world's largest car manufacturer by sales, announced it had temporarily halted shipments and sales of three models manufactured in Japan.
These scandals are a sore point for the government, which has been praised by investors and executives for its corporate reforms. Japan's Chief Cabinet Secretary Yoshimasa Hayashi called the behavior "regrettable."
