As of now, Daihatsu has stopped production of vehicles across four of its manufacturing facilities, including its Osaka plant at HQ
Daihatsu, a Japanese car manufacturer falling under Toyota's umbrella, has stopped production of vehicles in domestic market across 4 manufacturing facilities. This move came into effect after admitting fraudulent practices in safety tests of its vehicles for the past 30 years, with initial malpractices traced back to the year 1989.
Fraudulent safety tests discovered by investigating probe
Speaking about this safety scandal, Toyota remarked “Has shaken the company’s very foundation”. As uncovered in April 2023Daihatsu admitted to manipulating crash safety tests across 88,000 vehicles. Most of these vehicles were sold under Toyota brand in ASEAN countries like Malaysia, Thailand and others.
As unravelled in the findings, Daihatsu had modified front seat door inside lining to pass certain safety checks. During these crash safety tests, Daihatsu didn’t comply with regulations set by crash testing norms involving side collision tests. These findings were officially announced by Daihatsu and Toyota.
More fraudulent practices were uncovered in May 2023 by Daihatsu and the company revealed that there was incorrect data submitted by them regarding collision tests involving two hybrid electric vehicles. Sales and exports of said hybrid electric vehicles were halted immediately.
Recently, Daihatsu announced that there was evidence found of tampering safety tests of up to 64 vehicles, as revealed by an independent third-party committee. Some of these 64 vehicles were badge engineered and marketed under Toyota brand as well.
Toyota-owned Daihatsu Stopped Domestic Production
As per the results of latest probe on Daihatsu’s internal operations and management by an investigative committee, there are as many as 174 cases surfaced as the digging got deeper. These cases point to Daihatsu making false statements, data manipulation, and improper modifications with vehicles to pass safety tests.
The earliest case dates back to 1989, with a significant rise in malpractices since 2014, as per investigating report. Toyota is hellbent on righting this wrong and promises a “fundamental reform” to “revitalize Daihatsu”. The Japanese automotive juggernaut expressed that it requires a sweeping review of Daihatsu’s management, operations and the very structure of its subsidiary.
Daihatsu is known for manufacturing inexpensive and small passenger vehicles and is a prominent name in many countries. This Toyota subsidiary has halted manufacturing across all four of its production facilities temporarily which could last the entirety of January 2024 and might even extend to February 2024.
Around 9,000 workers seem to be affected by this move across four manufacturing facilities, including the one at company’s HQ in Osaka. Last Thursday, Toyota’s shares dropped 4% in Tokyo, facing financial losses following these revelations.
