Toyota Motor Corp. Issued Corrective Order by Transport Ministry for Fraudulent Practices

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Toyota Motor Corp. Issued Corrective Order by Transport Ministry for Fraudulent Practices

The transport ministry in Japan has taken action against Toyota Motor Corp. by issuing a corrective order on July 31 following the uncovering of fraudulent activities during the company’s vehicle certification tests. This order, delivered to Toyota President Koji Sato by ministry officials, marks a significant step in addressing the issues surrounding the improper conduct in certifying their vehicles.

The ministry's demand for substantial reforms from Toyota is based on the Road Transport Vehicles Law, requiring the company to make significant changes to comply with regulations and ethical standards in vehicle certification testing. The fraudulent practices were linked to the certification process necessary for the mass production approval of new vehicles, emphasizing the seriousness of the violations discovered within Toyota's operations.

Despite initial claims by Toyota on July 5 stating that there were no irregularities beyond the previously identified seven models, further investigations by the ministry revealed additional fraudulent activities related to testing in seven other models. This escalation in breaches of certification standards has prompted the ministry to take firm action by issuing a corrective order, signaling the need for Toyota to address these issues promptly and implement transparent practices to regain trust and compliance with regulations.