Toyota Motor (7203) Status Update summary

Overview of certification irregularities

• Six cases of certification irregularities were identified, involving the use of non-standard test methods or data for seven models, some of which are no longer in production.

• The irregularities included using development test data instead of required certification data, applying more severe test conditions, and adjusting engine control systems to meet standards.

• All affected vehicles were confirmed to meet legal safety and environmental standards, but the certification process was not properly followed.

• Production and shipment of three current models were suspended pending regulatory review, impacting suppliers and customers.

• The investigation is ongoing, with a full report expected by the end of June.

Root causes and process issues

• Long lead times, complex processes, and lack of standardized procedures contributed to the irregularities.

• Ambiguity in certification requirements and reliance on individual expertise led to inconsistent practices across divisions and group companies.

• There was insufficient communication and understanding of the overall certification process among all involved parties.

• Pressure from tight schedules and increased model variety added to the burden on operational staff.

• The absence of whistleblowing and limited use of internal reporting systems delayed the discovery of issues.

Response and improvement measures

• Joint kaizen (TPS Jishuken) activities were initiated across group companies to visualize and improve certification workflows.

• Efforts are underway to standardize certification processes, clarify quality criteria, and improve abnormality management.

• Top management is committed to direct engagement with operational sites (Gemba) to better understand and address issues.

• Communication and cooperation with suppliers and stakeholders are being prioritized, with compensation discussions ongoing.

• The company aims to share findings with industry associations and authorities to drive broader industry improvements.