ToyotaMotor (New York Stock Exchange:TM) said Monday it will suspend shipments of 10 vehicle models after its supplier Toyota Industries (OTCPK:TYIDY) reported certification issues on some diesel engines.
Toyota Industries (OTCPK:TYIDY), which develops diesel engines for Toyota (TM) automobiles, revealed that the investigation of a special committee found irregularities in the power tests carried out to certify three models of diesel engines. Ten models use the affected engines worldwide, including six in Japan.
The tests used software to measure horsepower output that is different from that used in mass production, making the values appear smoother and with less variation, the company revealed.
Japan's Ministry of Transportation will conduct on-site inspections on Tuesday.
“We recognize the seriousness of the fact that Toyota Industries' (OTCPK:TYIDY) repeated certification irregularities, following those of Daihatsu, have shaken the very foundation of the company as an automobile manufacturer,” Toyota (TM) admitted.
Last month, Toyota(TM)'s Daihatsu unit suspended all vehicle shipments in Japan due to crash safety testing, after which it decided to compensate suppliers for the production halt. Toyota also recalled 1 million U.S. vehicles due to a possible defect in airbag sensors, which had not been identified in a previous recall due to a problem with the inspection process.
