Japan's vehicle scandal exposes outdated processes: Analysts

Practices dating back to 1951 stifle innovation and are unrealistic, they say

- Walter Sim

TOKYO The unfurling testing scandal that has embroiled five Japanese automotive giants, including the world's largest carmaker Toyota, is inexcusable from the lens of governance and compliance, but it also reflects outmoded certification practices dating to 1951, analysts said.

The controversy, involving the mishandling of tests to obtain the government's certification, erupted on June 3. By June 10, Industry Ministry officers had raided all five companies involved, which also comprised household names Honda, Mazda and Suzuki, along with motorcycle maker Yamaha.

After irregularities were uncovered in December 2023 and January 2024 at Toyota subsidiaries Daihatsu and Toyota Industries, the government ordered 85 domestic vehicle and equipment makers to look into processes since 2014. Of these, 70 firms had submitted their findings, with the five companies citing actions deviating from regulations.

Many of these irregularities were based on in-house tests conducted during production and are said to be at stricter conditions than required, with retesting at government standards not done, given time pressures and the sheer number and complexity of items. The companies were also said to have different interpretations of the national certification system.

Still, this was done with the knowledge that the vehicles are safe to drive and that the key issue of safety was never woefully compromised. No problems have yet been found in the deviating testing processes for the 38 affected vehicle models, of which 32 are no longer in production.

There have been zero recalls thus far, and none of the affected models has been deemed unsafe. However, shipments of the six models still on the market have been halted, in line with standard operating procedure.