Japan orders Toyota, Mazda to halt some car deliveries

Market: Metals
03/06/24

Japan has ordered automakers Toyota and Mazda to suspend deliveries of some models because an official investigation has found that they tampered with safety test results.

The operational suspension could take several months, depending on further on-site inspections. The order came from the ministry of land, infrastructure, transport and tourism (Mlit) on 3 June. The manufacturers falsely reported results of safety tests, including crash impact tests, according to Mlit.

Toyota has halted shipments of the Corolla Fielder, Corolla Axio and Yaris Cross, it said on 3 June, adding that further internal investigations will continue until the end of June. Toyota is also likely to suspend some production lines, chairman Akio Toyoda said, which will affect two facilities in the northern Tohoku region that produces 130,000 units/yr including models besides the Corolla Fielder, Corolla Axio and Yaris Cross.

Mazda will suspend deliveries of the Roadster RF and Mazda 2, it said. But it is not yet known if Mazda will also suspend production of these models. The company started producing these models from June 2018 and June 2021 respectively, selling around 11,000 units and 42,000 units as of March this year. Mazda did not give a breakdown of average monthly output or year-on-year comparisons. Mazda produces eight different Roadster models.

Mlit also ordered Honda and Suzuki, which it said tampered with safety test results previously as well, to suspend deliveries of some models. But the companies have already terminated producing the car models of concern since October 2022 and December 2017 respectively.

The Milt order will not affect current production levels, a Honda representative told Argus.

It is a similar case with fellow Japanese producer Daihatsu, a Mlit official told Argus. Daihatsu was found to have tampered with safety test results in December 2023. Mlit ordered the company to suspend operations for around five months from December 2023.

Daihatsu's operational suspension caused Japan's domestic automobile production to fall to 604,022 units in April, down by 10pc from a year earlier and the fourth consecutive year-on-year decline.

By Yusuke Maekawa

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