Toyota’s Subsidiary Halts Production Amid Cheating Customers Over ‘Vehicle Safety’

• Daihatsu stopped production at all its Japanese factories due to fake safety tests for 30 years.
• Toyota is concerned that the Daihatsu scandal “impacted the core” of the company.
• All vehicle shipments stopped domestically and internationally.

Daihatsu, the Japanese car manufacturer under Toyota’s ownership, ceased production at its four Japanese factories after acknowledging the falsification of safety test results spanning three decades.

Due to the production halt, which affects around 9,000 employees involved in domestic manufacturing, it is anticipated to extend until at least the end of January.

The safety scandal has sparked significant worries for Toyota, with the automotive giant expressing that it has profoundly impacted the company’s core. The revelation occurred when Daihatsu disclosed last week that an external committee had found proof of manipulation in safety tests related to as many as 64 vehicle models.

Toyota’s Subsidiary Halts Production Amid Cheating Customers Over ‘Vehicle Safety’

This also encompasses vehicles sold under the Toyota brand. Consequently, Daihatsu has chosen to temporarily stop all domestic and international vehicle shipments, stating its intention to collaborate with authorities to chart the way forward.

This marks the company’s second major controversy this year. In April, it acknowledged violating crash test standards for more than 88,000 cars, primarily sold under the Toyota brand in Malaysia and Thailand.

In that instance, Daihatsu disclosed that “the inside lining of the front seat door was improperly modified” during certain checks. Additionally, in its statement, the company acknowledged failing to adhere to regulatory requirements for specific side collision tests.

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The recent investigation has severely tarnished the company’s reputation. The committee’s report, made public last week, revealed the discovery of 174 additional instances where Daihatsu manipulated data.

Toyota made efforts to mitigate the damage after its shares fell by 4% in Tokyo last Thursday by releasing a statement. The Japanese automaker asserted that “fundamental reform is needed to revitalize Daihatsu.” However, it acknowledged that achieving this substantial task cannot be accomplished overnight.