Toyota halts deliveries of Fortuner, Innova and Hilux. Here's why?

Toyota has announced that Toyota Industries Corporation (TICO) has received a report from the special investigation committee (chaired by Hiroshi Inoue) that was commissioned to investigate potential irregularities of certification regulations related to inappropriate domestic emissions certification of engines for forklifts and construction machinery. Toyota had commissioned TICO to develop diesel engines for automobiles.

In view of this, TICO decided to temporarily suspend shipments of the affected engines. Toyota has also decided to temporarily suspend shipments of vehicles equipped with the affected engines.

10 vehicle models are using the affected engines globally which includes the Fortuner, Innova and the Hilux along with LAND CRUISER 300 and Lexux LX500d. In view of this, Toyota Kirloskar Motor (TKM), the Indian arm of the Japanese automaker has halted the deliveries of the Fortuner, Innova and the Hilux.

TKM would, however, continue to take new orders for the three models, it said. For cars that have already been dispatched but have not yet been delivered to the customer, the company will carefully explain to customers about this condition, the company stated.

Toyota added that it is working with relevant authorities to reconfirm the data used for the certification of the affected vehicles.

What has happened?

The investigation found that irregularities occurred during the horsepower output testing for the certification of three diesel engine models for automobiles that Toyota had commissioned to TICO.

During certification testing, the horsepower output performance of engines was measured using ECUs with software that differed from that used for mass production so that results could be measured to make values appear smoother with less variation.

However the company stated that it has e-verified the mass-produced products manufactured at the plant and confirmed that the affected engines and vehicles meet engine performance output standards. Therefore, there is no need to stop using the affected engines or vehicles, it added.

Going forward, the company is open to providing detailed explanations to the authorities and promptly proceed with appropriate measures, including conducting testing in the presence of witnesses if appropriate.

Certification consists of having the national authorities inspect and confirm in advance that vehicles meet various standards so that customers can drive their vehicles with peace of mind. "We consider the appropriate process of certification to be a major prerequisite for doing business as an automobile manufacturer," Toyota's statement said.

What's next

TICO has informed Toyota that they will start by providing detailed explanations to authorities regarding these findings and proceed with measures under their guidance in the hopes of regaining the trust of customers and other stakeholders as a manufacturer worthy of certification.

In addition, restructuring the relevant business will require a change in the mindset of all individuals, from management to employees, as well as a drastic reform of corporate culture. As the party responsible for transferring the diesel engine business, Toyota will continue to provide support toward the revitalization of TICO's engine business.

Going forward, the company will be involved in all company-wide activities to help rebuild TICO and review the situation to thoroughly ensure that safety and quality are the top priorities.