Toyota Vietnam Suspends Avanza Shipment Over Safety Test Scam

Toyota Vietnam has stopped shipping the Avanza MPV to dealers amid the global safety test scandal swirling around subsidiary Daihatsu Motor.

Daihatsu recently announced that it would halt shipments of all vehicles indefinitely after more irregularities were discovered. An independent committee said it had found issues related to 64 models, including almost two dozen sold under the Toyota brand. The panel began investigating Daihatsu after it said in April it had rigged side-collision safety tests carried out on 88,000 small cars, Reuters reported.

Related: Daihatsu to Halt All Vehicle Shipments

Regarding the Avanza, Toyota Vietnam stated that an improper modification was made to the vehicle during the fuel efficiency and emissions testing. However, Toyota has only stopped shipping the manual transmission version of the vehicle and not the automatic version. But Avanza models already shipped to dealers will continue to be sold.

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Given the magnitude of the parent firm, analysts predicted that the Daihatsu scandal would have little effect on Toyota’s earnings. According to Nomura auto analyst Masataka Kunugimoto, a one-month production halt would result in 120,000 automobiles and a 240 billion yen (US$1.68 billion) loss in income for Toyota, as reported by Reuters.

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