On Tuesday, June 4th, Japan’s Ministry of Transport raided Toyota’s headquarters due to a scandal involving falsified safety test results. Toyota admitted to tampering with safety tests for airbag deployment, displaying incorrect crash angles for pedestrian safety tests, and using non-standard testing methods. Since then, the amount of carmakers in the scandal has expanded.
What Carmakers Are Involved in the Scandal?
Five total carmakers have admitted to providing false test information:
- Toyota
- Yamaha
- Mazda
- Honda
- Suzuki
What Vehicle Models Are Affected?
Each carmaker has admitted to certain forms of false test results on specific vehicles. We’re going to list each model that is part of this scandal.
Toyota
Toyota’s Chairman, Akio Toyoda, said in the company’s official statement that “Vehicles were mass-produced and sold without going through the correct certification processes.”
The following 3 models were listed:
- Corolla Fielder
- Corolla Axio
- Yaris Cross
Toyota claims that vehicles already on the road are not affected.
Yamaha
Yamaha stated in their corporate statement that “improper noise testing was done, as these tests were conducted under conditions different from those specified by regulations.”
The following Yamaha models were listed as having falsified noise level test results:
- YZF-R1
- YZF-R3
- TMAX Scooter
Mazda
Mazda’s official press release states they used “irregular processing of test vehicles in crash tests” on 3 discontinued models.
- ATENZA
- AXELA
- ATENZA / MAZDA6
They also admitted to rewriting engine control software in the testing of 2 models that are currently in production:
- MX-5 Miata RF
- Mazda2 Hatchback
Honda
22 models, assembled between February 2010 and September 2013, were improperly tested between 2009 and 2017. These models include:
- NSX
- S660
- Inspire
- Fit
- CR-Z
- Acty
- Vamos/Vamos Hobio
- Step WGN/Step WGN Spada
- Legend
- Accord/Accord Tourer/Accord Hybrid
- Fit Shuttle
- Insight Exclusive
- CR-V
- Freed/ Freed+/ Freed Spike
- N-Box/N-Box Custom
- N-One
- Odyssey
- N-WGN / N-WGN Custom
- Vezel
- Grace
- Shuttle
- Jade
These models are no longer in production and Honda claims their current models are unaffected.
Suzuki
Suzuki Alto LCV’s produced between 2014 and 2017 were found to have falsified braking test results.
How Does This Impact Dealers?
This scandal can affect dealerships in 3 major ways:
- Sales
- Inventory
- Revenue
Sales
Negative publicity may decrease customer trust in these 5 brands, potentially reducing sales if a large portion of your inventory consists of their models.
Inventory
Reduced sales can lead to excess unsold vehicles taking up space in your lot.
Revenue
Unsold inventory depreciates over time, leading to potential revenue loss, as you may have to lower prices to move the vehicles.
How Can Dealers Adapt to the Scandal?
Dealers can adapt by using 3 different methods:
- Enhanced inspections
- Transparent reports
- Inventory variety
Enhanced Inspections
You can implement stricter inspections on models mentioned in the scandal to ensure safety compliance.
Transparent Reports
You can make announcements for recalls, repairs, and safety issues related to scandal-affected models.
Inventory Variety
If your inventory consists mainly of Toyota, Yamaha, Mazda, Honda, or Suzuki models, expanding inventory beyond those brands may attract new buyers and potentially make up for any loss in sales.
Do I Understand How Safety Scandals Can Affect Car Dealers?
The recent safety scandal caught the automotive industry by surprise. With 5 different carmakers admitting to false test results, including the world’s top seller, this puts a dent in their production plans. Understanding how safety scandals could affect you and how to adapt can help your business overcome this type of situation.
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