Toyota logo with red TOYOTA text on a white hanging sign at an indoor event or showroom.

Automakers Should Respond to Cheating Scandal With Transparency

Recent revelations that Toyota Motor Corp. cheated on Japanese safety certification tests for seven vehicle models poses a significant reputational threat that the world’s top carmaker needs to quickly address.

Toyota – along with Mazda Motor Corp., Honda Motor Co., Yamaha Motor Co. and Suzuki Motor Corp. – were found to have falsified or manipulated certification data. Toyota’s Daihatsu unit acknowledged last year that it rigged side-collision safety tests, mostly in cars sold under the Toyota brand.

In a helpful statement, Toyota chairman Akio Toyoda has apologized for the scandal, in which the company used outdated or inadequate data for collision tests, along with incorrect testing of airbag inflation and rear-seat damage during crashes. Toyota suspended production in the country of three implicated models — the Corolla Fielder, Corolla Axio and Yaris Cross – but said the safety of vehicles already on the road isn’t in question.

The companies all said their products are safe. But the situation will raise questions among consumers about the companies’ honesty and reliability.

When situations like this take place, companies need to be transparent about what took place and publicly disclose accurate data. Companies should also turn to third parties who can independently verify the accuracy of their data. Doing so would demonstrate a commitment to openness and accountability.

In this instance, the automakers should be transparent about what happened and publicly detail the steps they’ve taken to prevent it from happening again – not just in Japan but in all markets where they sell vehicles.

Transparent communication will be crucial in restoring confidence, protecting the interests of all stakeholders, and working toward renewed public trust.

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