Toyota to Take Charge of Car Development at Subsidiary Daihatsu After Safety Test Scandal

By Trisha Andrada

Apr 08, 2024 05:40 AM EDT

In an effort to restore confidence after a safety test controversy, the new president of Daihatsu announced that its parent company, Toyota, would be supervising its model certification moving forward.

Masahiro Inoue, who assumed leadership of Daihatsu in March, said Monday, Apr. 8, that Toyota would take on a leading position in many areas, such as product development and procurement.

JAPAN
The logo of Japanese automaker Daihatsu is seen during the press day of the Japan Mobility Show in Tokyo on October 25, 2023.
(Photo : KAZUHIRO NOGI/AFP via Getty Images)

Daihatsu Was the Subject of Allegations of Widespread Deception in Safety Tests

According to The Associated Press, allegations of extensive cheating on safety testing arose last year, prompting his predecessor at Daihatsu to retire. A third-party evaluation revealed that infractions, such as testing just one side of a vehicle rather than both, have persisted for many years.

A government order has temporarily suspended production at Daihatsu until the company conducts necessary testing and establishes measures to avoid another incident. Since then, output has picked up a little again.

Daihatsu off-road vehicles and compact "kei" automobiles are their specialties.

See Also: Elon Musk Says Tesla to Unveil a 'Robotaxi' in August; Shares Jump

Inoue Apologizes and Pledges to Bring About Significant Change

The disclosure has cast doubt on the level of supervision at Toyota-owned Daihatsu, even though no serious accidents have been linked to the scandal.

Inoue has taken decisive steps to rectify the situation, including personal visits to factories, dealers, and suppliers to improve communication. While dealers have expressed concerns about consumer patience, Inoue has reiterated that safety is the top priority, even over market growth.

Inoue confessed that he had been dishonest to meet the high demand to deliver the products quickly. "All of Daihatsu, as one team, will work hard so people can feel our vehicles are safe. We are about to make a big change," he stated.

See Also: Subaru Recalls Nearly 120,000 U' Vehicle' Over Dangerous Airbag Issues

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