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.
Five total carmakers have admitted to providing false test information:
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’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:
Toyota claims that vehicles already on the road are not affected.
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:
Mazda’s official press release states they used “irregular processing of test vehicles in crash tests” on 3 discontinued models.
They also admitted to rewriting engine control software in the testing of 2 models that are currently in production:
22 models, assembled between February 2010 and September 2013, were improperly tested between 2009 and 2017. These models include:
These models are no longer in production and Honda claims their current models are unaffected.
Suzuki Alto LCV’s produced between 2014 and 2017 were found to have falsified braking test results.
This scandal can affect dealerships in 3 major ways:
Negative publicity may decrease customer trust in these 5 brands, potentially reducing sales if a large portion of your inventory consists of their models.
Reduced sales can lead to excess unsold vehicles taking up space in your lot.
Unsold inventory depreciates over time, leading to potential revenue loss, as you may have to lower prices to move the vehicles.
Dealers can adapt by using 3 different methods:
You can implement stricter inspections on models mentioned in the scandal to ensure safety compliance.
You can make announcements for recalls, repairs, and safety issues related to scandal-affected models.
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.
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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