Japanese automaker, Toyota (TM) announced that the company will suspend shipments of some models including the Hilux truck and Land Cruiser 300 SUV. This decision comes after the company found irregularities in the certification tests for diesel engines developed by Toyota Industries.
The discrepancies were found by a special investigative committee during horsepower output testing used for the certification of three diesel engine models.
Globally, the discrepancy effects ten models, including the Hiace van, Fortuner SUV, Innova multi-purpose vehicle, and the Lexus-branded LX500D SUV, as stated by Toyota.
The company stated their intention to provide a comprehensive explanation of the situation to relevant authorities and has committed to taking remedial actions, including conducting new engine certification tests, with regulators present if needed.
"There was a lack of communication with Toyota Motor (NYSE:TM) and not enough coordination about testing processes and procedures that should have been followed," Toyota Industries President Koichi Ito said at a press conference.
Toyota Industries reported the sale of approximately 84,000 diesel engines affected by the issue during the fiscal year ending on March 31, 2023.
Koji Sato, the CEO of Toyota, disclosed on Monday that the company globally used 36,000 units of the affected engine models monthly, amounting to a yearly total of 432,000 units.
The suspension of shipments in Japan had repercussions on the production of six lines across four plants.
Toyota Industries affirmed that the impacted engines and vehicles still complied with engine performance output standards. The investigation revealed a discrepancy, noting that the electronic control units utilized in horsepower output testing differed from those used in the actual engine production process.
Japan's transport ministry announced plans to conduct an on-site investigation at Toyota Industries' Hekinan plant in central Aichi prefecture, where the company manufactures automotive and industrial engines, scheduled for Tuesday.
Shares of TM are down 0.23% in pre-market trading Monday morning.