Toyota’s Plan to Reform Daihatsu Motor After Safety Test Scandal

2024-01-16 11:42:20

Japan’s Toyota Motor Group plans to announce measures in regarding a month to reform its small car specialist, Daihatsu Motor, following an investigation into misconduct at the unit linked to rigged anti-collision safety tests , uncovered problems dating back decades.

“We take this very seriously,” Toyota CEO Koji Sato told reporters.

Toyota will consider whether to remove boundaries between its operations and those of Daihatsu as part of the move, he said, adding that it might send engineers to its wholly-owned subsidiary.

Another potential move is changing Daihatsu’s management structure, Mr. Sato said.

Production at Daihatsu’s factories in Japan has remained halted since late last month, following an independent panel investigating the company found problems with 64 models, including nearly two dozen sold under the Toyota brand .

Japan’s transport ministry said earlier on Tuesday that it had started proceedings to revoke the safety certification of three models for which Daihatsu had manipulated crash safety tests as part of requests for approval. ‘approval. The models affected are the Daihatsu Grand Max, Toyota TownAce and Mazda Motor Bongo.

Daihatsu, which has been a wholly owned subsidiary of Toyota since 2016, is popular for its range of small vehicles in Japan and Southeast Asia. Its competitors include Suzuki Motor, which has a particularly large market share in India.

The investigation unveiled last month found that misconduct at Daihatsu included issues such as false reporting of headrest impact tests and test speeds for some models.

It revealed that cases of embezzlement were particularly common following 2014 and, for an abandoned Daihatsu vehicle, went back as far as 1989.

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