In a fresh wave of scrutiny, Toyota Motor Company faces renewed criticism under the leadership of Chairman Akio Toyoda. Two of the Japanese automaker’s largest shareholders are now calling for his removal following reports of misconduct regarding inadequate vehicle verification testing, adding to a string of previous certification violations.
Despite being a global market leader in automotive, Toyota has often been criticized for its inconsistent commitment to electrification under Toyoda’s tenure. In a recent ranking by InfluenceMap, Toyota was named the worst automaker in global climate lobbying, underscoring its poor performance in climate policy engagement.
Toyota, along with Subaru and Mazda, recently announced a commitment to developing next-generation combustion engines with integrated EV components, a move seen by some as a lagging effort in the transition to electric vehicles.
Toyota’s recent troubles include certification issues in Japan, with subsidiaries like Hino Motors and Daihatsu facing allegations of forging emissions certifications and rigging safety tests, respectively. In a more recent incident, Toyota had to halt global shipments of ten models due to improper horsepower and torque testing.
Chairman Akio Toyoda has been vocal about improving testing procedures within the Toyota Group, but the company is now facing new challenges. Following a Ministry of Transportation announcement citing Toyota and other automakers for improper vehicle verification data and safety test violations, Toyoda issued an apology during a news conference. He stated that out of tens of thousands of tests conducted, only six violations have been discovered so far.
Despite Toyoda’s reassurance that the vehicles are safe to drive, Toyota failed to obtain necessary waivers from the Ministry of Transportation before these issues arose, nor did it conduct retests to the required specifications.
The latest controversy has prompted major shareholder proxy groups, Glass Lewis & Co. and Institutional Shareholders Services (ISS), to call for Toyoda’s removal from the board. ISS stated in a position paper that shareholders should vote against Toyoda, holding him personally responsible for the company’s issues.
Toyota has halted outgoing shipments while cooperating with the Ministry of Transportation, but maintains that the affected vehicles are safe to drive in Europe and Japan. The company’s annual shareholders meeting later this month is expected to address Toyoda’s future role within the company.
