Reported by Automotive News, Sato said, “To enable us to make more cars, we must step things up a gear in areas such as building quality into every process.” He also warned suppliers that “unless things change, we [Toyota and its suppliers] will not survive.”

The latest in a string of recalls covers the Land Cruiser 300 and its transmission ECU. In Toyota’s findings, the special linear solenoids may stop working under certain driving conditions. If that happens, the Transmission Electronic Control Unit (TECU) and the Engine ECU may not properly detect or communicate the issue. When this happens, the transmission may overrev in certain gears resulting in transmission damage or a possible power loss while driving at high speed. In some cases, if specific parts of the transmission housing become damaged, transmission fluid may leak. Although uncommon, this could potentially result in a fire if an ignition source is present.

Toyota Motor Philippines confirms that 3,847 units of the flagship SUV are affected produced between November 22, 2024 to December 5, 2025. The fix will require a reprogramming of the transmission ECU at free of charge to the vehicle owners.

Back in Japan, Sato met with the carmaker’s 484 top suppliers telling them to brace for harder times ahead. He said that closer cooperation, innovation, and pragmatic planning and product development would be keys to co-prosperity.

For his part, incoming Toyota CEO (and current CFO) Kenta Kon says the company and its suppliers must not be lulled into a false sense of security just because of the carmaker’s profits and massive volume.

To help suppliers, Toyota is adopting new measures that will see them use more common parts across the line-up such as door handles and sun visors.

In addition, Toyota is relaxing its overengineered quality standards. Under Toyota’s previous quality standards, suppliers were often forced to scrap components because they had cosmetic flaws, even though they had no functional defect. These included headliner boards with an occasional black spot or steering wheels with imperceptible wrinkles in the molded resin. The same goes for wire harnesses which were discarded just because of discolored plastic.

Today, Toyota as well as members of the Japan Automobile Manufacturers Association (JAMA) is adopting the Smart Standard Activity. This includes the relaxation of specifications as well as standardizing specs on parts not visible to customers. At the same time, suppliers must dedicate to better quality inspection while cutting wastage and improving or developing new technologies.