2 weeks ago
TOKYO: Japanese auto giants Toyota and Mazda suspended production of five car models on Thursday due to fraudulent practices discovered in national certification tests, in the wake of a cheating scandal among five major Japanese automakers, reported Xinhua.
Following the order of the Japanese Transport Ministry to halt shipments of affected models, Toyota Motor Corporation halted production of three models, including the Yaris Cross, at its factories in the prefectures of Miyagi and Iwate, with the suspension expected to last until June 28.
Meanwhile, Mazda Motors Corporation, ceased its production of two models, including MAZDA2, at its factories in the prefectures of Hiroshima and Yamaguchi.
The suspension came after the Ministry of Land, Infrastructure, Transport and Tourism disclosed that Toyota, Honda Motor, Mazda, Yamaha Motor and Suzuki Motor have been implicated in illegal fraudulent practices during their mass production certification applications.
With a substantial combined impact on both companies’ supply chains, the disruption is causing significant concern for regional economies, particularly for small- and medium-sized enterprises that are integral to the supply network, according to local media reports.
It is estimated that the production halts are affecting over 1,000 suppliers for Toyota and about 300 for Mazda.
Emphasising efforts to mitigate the economic repercussions, Chief Cabinet Secretary Yoshimasa Hayashi said the Transport Ministry would expedite compliance verification tests to minimise the economic impact of the halted shipments.
Neither Toyota nor Mazda has specified when production will resume for the affected models.
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