Toyota Submits Second Progress Report on Recurrence Prevention Measures
Toyota Motor Corporation (Toyota) has announced the submission of its second progress report detailing the measures implemented to prevent the recurrence of model certification application issues. This report was submitted to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) following the correction order issued by the ministry on July 31. The report outlines the actions taken to date and forms part of a series of quarterly updates intended to provide transparency and accountability regarding Toyota’s corrective measures.
Overview of Recurrence Prevention Measures
Toyota has developed a comprehensive strategy to prevent future certification-related issues, centered around three key pillars: Strengthening Foundations, Monozukuri, and Human Development. These pillars aim to reinforce the company’s compliance culture, improve operational efficiency, and enhance workforce capability. Additionally, Toyota has emphasized the importance of on-site management, where executives regularly visit production sites to assess compliance adherence and swiftly address any irregularities.
1. Strengthening Foundations
Toyota has been working diligently to strengthen its foundational systems and ensure that all employees understand and adhere to legal compliance requirements. The following measures have been implemented under this initiative:
- Increased Management Engagement with the Genba (Worksite):
- Senior management is actively visiting operational sites to gain firsthand insight into problems, identify root causes, and make immediate decisions to resolve them.
- These visits aim to bridge communication gaps between frontline employees and upper management, fostering a culture of transparency and problem-solving.
- Improved Internal Controls and Auditing Systems:
- The company has reinforced its abnormality management process within vehicle development to prevent deviations from standard procedures.
- Toyota has strengthened certification operation audits conducted by in-house inspectors to ensure a higher level of compliance monitoring.
- To further enhance oversight, the company has introduced secondary audits for both abnormality management and the certification auditing process, creating a dual-layered safety net.
- Workforce and Resource Allocation Adjustments:
- Toyota has taken proactive steps to assess and optimize the conditions of its certification-related departments.
- Additional human resources and testing equipment have been allocated to key areas, such as the Regulations and Certification Department and the Collision Testing Fields, to support more rigorous testing and compliance measures.
2. Monozukuri (Manufacturing Excellence)
Toyota has made structural improvements to its manufacturing and development processes to prevent certification issues from arising in future projects. The company has implemented the following initiatives:
- New Operational Approaches for Ongoing Development Projects:
- Since October 2024, Toyota has integrated recurrence prevention measures into its active development projects.
- This involves continuous monitoring and intervention at various milestones to ensure compliance with regulatory requirements.
- Certification Impact Assessment System:
- Toyota has introduced a system to evaluate how certification operations are affected at each milestone in the vehicle development process.
- This system enables management to make informed decisions regarding regulatory compliance by assessing:
- Applicable laws and regulations
- Scale and complexity of certification operations
- Certification schedule alignment
- The number of vehicles requiring certification
- As of February 2025, a total of 35 vehicle development projects are being monitored under this system, demonstrating Toyota’s commitment to compliance-focused decision-making.
- Ongoing Discussions on Worksite Countermeasures:
- Toyota has held 10 countermeasure discussion sessions since the previous report, totaling 22 discussions overall.
- These discussions are reported to the Board of Directors, ensuring that top leadership remains actively involved in certification-related oversight.
- This ongoing dialogue helps in promptly identifying issues and implementing necessary corrective actions.
3. Human Development and Cultural Transformation
To foster a culture of compliance and continuous improvement, Toyota has expanded its efforts in employee education, training, and engagement across all levels of the organization. Key initiatives include:
- Enhanced Communication Between Management and Employees:
- Toyota has broadened the scope of communication initiatives to involve employees from various departments beyond just development and certification, including planning, production, sales, and other certification-related worksites.
- These efforts ensure that compliance awareness is embedded throughout the organization.
- Regular Executive Communication:
- Since the recurrence prevention measures began, the Toyota president has issued 14 official messages to employees, reinforcing the importance of adherence to compliance standards and ethical business practices.
- Company-Wide Certification Training Led by Chairman Akio Toyoda:
- Since February 2024, Chairman Akio Toyoda has personally led efforts to implement Toyota’s company-wide Toyota Production System (TPS) training program for Certification Work.
- This initiative aims to improve certification processes through Toyota’s core philosophy of continuous improvement (kaizen).
- Executives, including the president, actively participate in on-site observations at key genba locations, such as planning, development, design, production, and sales, to:
- Identify process bottlenecks
- Streamline certification workflows
- Establish a systematic approach to identifying and resolving abnormalities
Company-Wide Commitment to Regaining Trust
Toyota remains committed to preventing a recurrence of past certification issues through a company-wide approach that prioritizes transparency, compliance, and operational excellence. The automaker recognizes that regaining the trust of stakeholders—including government regulators, customers, and industry partners—requires sustained efforts and measurable progress.
Toyota will continue to submit quarterly reports to MLIT as part of its ongoing commitment to accountability. These updates will track the effectiveness of implemented measures and provide further insights into’s ongoing transformation efforts.
By reinforcing its organizational foundations, refining its manufacturing processes, and investing in the professional development of its workforce, aims to set a new standard for regulatory compliance in the automotive industry. The company will persist in its pursuit of ethical and responsible business practices to uphold the highest standards of safety, quality, and trust.
Toyota appreciates the patience and confidence of its stakeholders as it undertakes these comprehensive measures. The company remains focused on creating a future where compliance is deeply embedded into its corporate culture, ensuring a sustainable and trustworthy approach to vehicle certification moving forward.
