Corrective Order on Toyota

Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced that it found false manipulation of safety test data in seven models of cars produced by Toyota Motors. Although Toyota had already revealed its false test data in seven models, the mismanagements expanded to fourteen models, which caused a corrective order of MLIT on Toyota. It is doubted that the carmaker has structural problem in management of producing automobiles.

The false fabrication was found in four models which has currently been produced, including RAV4, Noah/Voxy, Harrier and Lexus LM, and three models which production had been finished, including Prius 𝛼, Lexus RX and Camry. False fabrication was replacing steering wheel at the test or rewriting data of speed of driving. Corrective order is one of the strictest penalties based on the Road Transport Vehicle Law for a manufacturer.

 

Toyota is the top runner in sales among the carmakers in Japan. It renewed its highest record of operating profit in the second quarter of this year, which was 1.3 trillion yen with 16.7 percent of increase from the same quarter of previous year. Although it reduced its production in Japan with false test data scandal revealed in June, as one of the five carmakers that were involved in, Toyota secures its profit with support of depreciation of Japanese yen.

 

In the press release about the corrective order, Toyota apologized to its stakeholders, regretting its failure in safety tests. It raised three reasons for false activities in the tests: unclear rules for making document for the tests, insufficient resources for safety tests and lack of recognition about the importance of safety tests. Toyota promises reviewing the system of safety tests and reporting their measures to MLIT for not having the same failure.

 

In the report to MLIT submitted on August 9, Toyota decided to deploy “internal examination personnel” for the safety tests. The managers will be responsible for the safety tests, participating in the assessment of safety. The company is going to increase the workers involved in the safety tests by ten percent. To reduce mistakes in the process, it further introduces digital technologies also to reduce burden of the workers.

 

A month after the findings of false data in five carmakers in June, Toyota announced the result of internal investigation about false activities and affirmed that there would be no more false activities. A month later, however, it was revealed that Toyota had been involved in other false activities in the safety tests and received a corrective order from MLIT. It may cause losing confidence to the compliance of Toyota.

 

The main reason of false data revealed in June was that Toyota had been too focused on international competition in car making to secure enough resources on safety tests. It is questioned to Toyota whether it would recognize importance in their business, profit or safety.

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