Toyota’s Daihatsu Halts Vehicle Shipments Amid Wider Safety Scandal
Tokyo, Dec 20 (Reuters) Cars Newswire- Toyota Motor’s (7203.T) Daihatsu unit is set to suspend shipments of all its vehicles, affecting 64 models, including nearly two dozen under the Toyota brand, following an investigation into a safety scandal. The independent panel uncovered issues related to side-collision safety tests, impacting models sold domestically and abroad, including those by Toyota, Daihatsu, Mazda (7261.T), and Subaru (7270.T).
An earlier disclosure by Daihatsu in April, stating it had rigged side-collision safety tests for 88,000 small cars, has now escalated into a more extensive and historical problem, potentially posing a threat to the automakers’ reputation for quality and safety.
Daihatsu, specializing in small cars and trucks, particularly the popular “kei” smaller cars in Japan, will undergo “fundamental reform” to revitalize the unit. Toyota emphasized the need for a comprehensive review of management, business operations, organization, and structure to address the severity of the situation.
The investigation revealed discrepancies in airbag control units used in tests compared to those in public vehicles, impacting various models, including Toyota’s Town Ace and Pixis Joy, Mazda Bongo, and others. Toyota stressed that the financial impact of the matter is yet to be determined.
An on-site inspection by Japan’s transport ministry at Daihatsu’s headquarters is scheduled for Thursday. Daihatsu President Soichiro Okudaira acknowledged the seriousness of the situation, stating that overseas shipments would remain suspended until regulatory clearances are obtained.
The misconduct also involved false reports on headrest impact tests and test speeds, with instances dating back to 1989. While the investigation did not find Toyota responsible for the misconduct, it highlighted Daihatsu’s efforts to meet self-imposed expectations.
Daihatsu, with 1.1 million vehicles produced in the first 10 months of the year, accounts for nearly 40% of overseas Toyota sites’ output. The suspension of shipments will impact various markets, including Southeast Asian and Central and South American countries.
This incident adds to the history of safety issues affecting the Toyota group, recalling previous concerns such as the engine data scandal at Hino Motors in 2022 and the 2010 safety crisis involving faulty accelerators, where Toyota Chairman Akio Toyoda testified before the U.S. Congress.
Source: Reuters
