Leaders of Japan’s Top Three Automakers Apologize Over Vehicle Certification Scandal; Dealers and customers are concerned about suspended shipments of certain models

The presidents of three of the five automakers embroiled in a growing and unprecedented scandal over vehicle test certification held press conferences Monday to apologize for their companies’ improper practices.

The deception involved cases of recently discovered falsification of vital documents for some vehicle models. The scandal has halted shipments and sales of these models, including some popular ones, raising concerns among car dealers and consumers alike.

“We believe such misconduct shakes the foundations of the system and is something that automakers should never do,” Toyota Motor Corp. Chairman Akio Toyoda said at a news conference in Tokyo on Monday.

Following previous revelations about car companies engaging in fraudulent practices regarding test results, the Ministry of Land, Infrastructure, Transport and Tourism ordered 85 vehicle and equipment manufacturers to conduct internal investigations in January and February.

The ministry announced on Monday that the facts, including falsification of documents, came to light at five manufacturers: Toyota, Mazda Motor Co., Yamaha Motor Co., Honda Motor Co. and Suzuki Motor Co.

In its investigation, Toyota discovered irregularities in certification testing, a necessary step in the mass production of cars and other vehicles. More than 1,000 companies that do business with Toyota, including subcontractors, will be affected by the scandal.

“Toyota is not a perfect company,” Toyoda said. “If we make a mistake, we have to stop what we are doing and conduct an investigation on the spot and on the actual things, which creates the opportunity for improvement.”

Mazda President Masahiro Moro also showed remorse at his press conference in Tokyo. “I take the matter seriously and offer my deepest apologies,” he said.

Shipments of two Mazda car models have been suspended, for which Moro said the company has about 3,500 pending orders. “We will provide a detailed explanation [to our customers],” said Moro.

Regarding the losses of parts manufacturers supplying the company, he said: “We will of course reimburse them.”

Honda President Toshihiro Mibe bowed deeply as he addressed the press on Monday. “Testing in the certification system is a prerequisite for ensuring safety and peace of mind regarding our products, and we accept the results [of the investigation] with great seriousness,” Mibe said.

Dealers were left in the dark

The sudden halt in shipments of some models has car dealers on the move.

“I’m the one who has to tell the customer who is about to take delivery of his car, ‘The shipments have stopped and you won’t get your car,’” complained an employee at a Toyota dealership in Tokyo.

According to the employee, the suspended Yaris Cross model is one of the company’s most popular sellers. Because some customers buy a new car when the next mandatory (and expensive) inspection of their current car is due, dealers may be forced to provide loaner cars or cover the inspection costs themselves. Additionally, purchase cancellations can leave dealers with an excessive inventory of cars.

“Customers who have received an affected model come in for their scheduled check-up, but I am too embarrassed to face them,” said an employee at a Mazda dealer in western Japan. “And how should I explain this to potential customers? I need detailed information as soon as possible.”

The Toyota City Government of Aichi Prefecture uses Toyota cars as official vehicles and owns more than 40 Corolla Fielders – one of the models under the stop-shipping order. “If a car is used that has not been properly tested and, heaven forbid, a municipal worker or resident is involved in an accident, the damage will be irreparable,” said a municipal official in his 40s.

A 44-year-old resident of the city, who has been driving Toyotas for more than two decades, said: “I drive it because I trust the brand.

“While they say there is no problem with the implementation [of the affected models], I am concerned to think that there could be irregularities in other inspection processes. I want them to fix what needs to be fixed.”