Column: Toyota will emerge even stronger from all the scandal scrutiny

Toyota seemed to have put to rest an embarrassing vehicle certification scandal in July after it investigated the testing methods used on all domestic models sold at home for the past decade.

The result of its exhaustive survey: No further misconduct, thank you very much.

But Japan's transportation ministry said, "Not so fast."

Turns out, Japanese authorities conducted their own spot checks. In reality, Toyota had eight more cases of faulty certification involving seven vehicles. Oops.

The surprise reality check by regulators, detailed in the Aug. 5 issue of Automotive News, is one of two major headlines encapsulating the recent trajectory of the world's biggest automaker. The scandal flared up again on the eve of Toyota's fiscal first-quarter earnings report. And the negative vibe took the shine off what should have been a cause for celebration.

Operating profit climbed 17 percent in the April-June period to a record high for the company's first quarter. And Toyota's operating margin expanded to an impressive 11 percent.

All told, the scandal scars are more psychological than operational. Many of the violations weren't considered major and only limited output was lost to suspended production.

Yet Toyota was slapped with its first-ever "correction order" and must now spend precious time and energy on another deep-dive review for a ministry report on how it will improve compliance.

Toyota's misadventure is a cautionary tale about running afoul of Japanese authorities, no matter how pettifogging all of their bureaucracy may seem. But the country's manufacturing flagship — equipped with a new, high-tech Lexus headquarters to lead EV development — will undoubtedly emerge even stronger for all the scrutiny.