Double Trouble For Toyota? 10 Models Grounded In New Suspension Shock After Daihatsu Debacle

Japanese automaker Toyota Motor Corp (NYSE:TM) said on Monday that it would suspend the shipment of 10 vehicle models after its supplier reported certification irregularities with the diesel engines delivered to the automaker.

What Happened: The supplier, Toyota Industries Corporation (TICO), informed the automaker that irregularities were identified during the horsepower output testing for the certification of three diesel engine models.

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The company said that different software was deployed on the electronic control units when measuring the horsepower output performance of these engines to make them appear smoother compared to the one used for mass production. 

The delivery suspension affects 10 models globally, including Land Cruiser 300, Hilux, Fortuner, and Innova. A Toyota spokesperson told Benzinga that the suspension affects only vehicles that would be produced in the future. The vehicles that have already been delivered meet engine output standards and pose no safety concerns for the drivers, they added.

Why It Matters: Only last month, Toyota's unit Daihatsu announced the suspension of several of its models after identifying malpractice in safety tests for several vehicle models, including Daihatsu brand vehicles and those supplied to Toyota, Mazda, and Subaru.

However, the spokesperson told Benzinga that the situations that led to the respective issues at Daihatsu and now at TICO are distinct.

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