Late yesterday night at around 9 pm Japan time, Toyota Chairman Akio Toyoda and CEO Koji Sato hastily organized an emergency live press conference. It was revealed that Toyota’s compact car subsidiary Daihatsu, responsible for developing the AC100 generation 2023 Toyota Vios (also known as Yaris Ativ in Thailand) and D74A 2023 Perodua Axia, had submitted side-impact crash safety test results done using a different part from those fitted on production cars delivered to customers.

A total of 76,289 units of AC100 generation Toyota Vios / Yaris Ativ produced in Thailand and Malaysia are affected, as well as 11,834 units of D74A generation 2023 Perodua Axia made in Malaysia.

Upon finding the problem, Toyota has immediately suspended shipments of the affected part.

A third model that is under development is also affected, presumably referring to a Southeast Asian variation of the Toyota Yaris Cross, developed by Daihatsu under the project code D66B. The development of this model will of course be delayed. The 7-seater model is rumoured to replace the ageing Perodua Aruz / Toyota Rush.

Chairman Akio Toyoda’s words were uncharacteristically harsh, expressing his disappointment with words that are typically not used by the Japanese in public. He said:

“Daihatsu Motor Co., Ltd.'s wrongdoing is a matter that concerns safety, which is the most important aspect of vehicles. We consider this an absolutely unacceptable act that betrays the trust of our customers. We would like to sincerely apologize to our customers around the world and all related parties for the inconvenience and concern this has caused."

However, just when you thought his fury is directed only to Daihatsu, Chairman Toyoda said Toyota is not without blame, and the problem is likely to run deeper and won't be confined only to Daihatsu, since Toyota's own people accepted the product delivered by Daihatsu.

“Since this problem occurred with a Toyota brand passenger car, we believe that the problem is not limited to Daihatsu. We will begin by conducting a detailed investigation and thoroughly collecting facts to understand the situation, determine the true cause, and work diligently to prevent a recurrence. We will also inform the public in a timely manner regarding the facts we learn through our investigations.

“I personally promised our customers that Toyota would not run away, lie, or distort the truth during the recall crisis in 2009. Nevertheless, we find it to be a serious matter that such a problem has occurred at one of our group companies.”

Chairman Toyoda also said the responsibility to improve manufacturing operations will be taken over by Toyota CEO Koji Sato.

“As the top executive officer, President Sato will take responsibility for improving the car manufacturing operations of Toyota and the group companies, while I, as the Chairman of the Board and with my recall issue experience, will lead initiatives for governance and compliance. The Toyota Group as a whole will do its utmost to regain the trust of our customers as soon as possible,” he said.

What was the problem?

It revolves around compliance to the international United Nations standard for side-impact crash safety protection, known as the UNECE R95 standard, and its equivalent GCC Standardization Organization (GSO) adopted by the Gulf Cooperation Countries (GCC) in the Middle East.

The part fitted into the door frame during the test has a design that prevents it from making a sharp cut on the inner door panel, which could injure occupants. This improved part design was not installed on production cars.

There could be some legal implications as compliance to UNECE R95 is a requirement to obtain a Vehicle Type Approval (VTA) – the vehicle homologation paperwork needed before the first unit of any new car can be registered.

Also said: Your car has an IC and a 'birth cert' - JPJ demonstrates how vehicle homologation (VTA) is done, with a BMW iX

I own an affected Axia / Vios, what should I do?

Daihatsu says affected customers can continue using their cars as normal but Toyota adds that it is checking with local authorities regarding the validity of the certification obtained and what should the company do next.

“This is a very serious incident for us. We are going to thoroughly check the certification work for the group as a whole, for all countries,” said CEO Sato.

Since the matter has just been revealed in Japan yesterday night, the local counterparts at Perodua and UMW Toyota Motor will need some time to align themselves.

Although it is not a nice feeling to have, there is no immediate threat to the safety of your vehicle in everyday use.

We will share more updates as we receive them.

How was the problem found?

A whistle blower within the company raised the issue. 

"It came from a whistle blower, that's what I learned," said Chairman Akio Toyoda.

What is the root cause?

When asked what he thinks is the cause of the problem. CEO Sato candidly said it is due to Toyota group's corporate culture. The same department doing the testing is also the department doing the certification.

“The background of this wrong doing is corporate culture and factors related to product development environment. Certification, monitoring department and testing are all under one department. So the results of the development were not investigated objectively. There should be a calm and objective viewpoint in order to decide go or no-go,” he said.

Daihatsu's misstep in compliance comes 8 months after Hino's falsified exhaust emissions test data scandal came to light in Japan. Hino is Toyota's heavy trucks subsidiary. Toyota has since expelled Hino from the inter-company Commercial Japan Partnership Technologies Corporation (CJPT) formed with Isuzu.

Also read: "A disgrace to Japan" - President Akio Toyoda expels Hino from commercial vehicle tie-up