Japanese automaker Daihatsu, owned by Toyota, has halted its native manufacturing after admitting to falsifying the outcomes of security assessments for its automobiles over a interval of greater than 30 years.
The model, recognized for making small passenger automobiles, has halted manufacturing in any respect 4 of its Japanese factories as of Tuesday, together with a plant at its headquarters in Osaka, a model spokesperson instructed CNN.
The closure will proceed till no less than the tip of January, affecting roughly 9,000 workers working in native productions, in line with the consultant.
Pictured is Daihatsu’s Oyamazaki Automotive Plant in Kyoto, Japan. Toyota’s small automobile unit stated it’s going to droop manufacturing in any respect home vegetation till no less than the tip of January because of the security testing scandal. (Kyodo Information/Getty Photographs)
The transfer comes as Daihatsu grapples with Toyota’s escalating security scandal He says “It shook the very foundations of the corporate.”
Final week Daihatsu Announce An impartial third-party panel discovered proof of tampering with security assessments on as much as 64 automobile fashions, together with these offered beneath the Toyota model.
In consequence, Daihatsu stated it could briefly droop all home and worldwide automobile shipments and seek the advice of with authorities on how you can proceed.
The scandal is one other blow to the automaker, which has acknowledged it in April For violating crash check requirements on greater than 88,000 automobiles, most of that are offered beneath the Toyota model in international locations akin to Malaysia and Thailand.
Daihatsu Motor Company’s headquarters are positioned in Ikeda, Osaka Prefecture, western Japan, Tuesday, December 26, 2023. (Kyodo Information through Related Press)
In that case, the entrance seat door inside lining was “improperly adjusted” for a number of the assessments, whereas Daihatsu didn’t adjust to regulatory necessities for a number of the side-impact assessments, it stated in an announcement on the time.
In Might, the automaker He stated It found extra violations, revealing that it had supplied incorrect information for crash assessments on two hybrid electrical automobiles. The corporate stated on the time that it had stopped delivery and promoting these fashions.
The newest investigation additional threatens the corporate’s popularity. in line with a report Final Wednesday, the investigation committee introduced one other 174 instances of Daihatsu manipulating information, making false statements or improperly manipulating automobiles to go security certification assessments.
The report acknowledged that the oldest case dates again to 1989, with a noticeable improve within the variety of instances since 2014.
Toyota shares fell 4 p.c in Tokyo final Thursday after the information. The inventory has since pared some losses.
In response, the Japanese large promised to make radical modifications to its subsidiary, saying in a assertion final week that “basic reform is important to revitalize Daihatsu.”
“This will probably be a vital job that can’t be achieved in a single day,” Toyota stated, including that it’s going to require a complete evaluation of administration, operations and the way the unit is structured.
“We acknowledge the seriousness of the truth that Daihatsu’s neglect of the certification course of has shaken the corporate’s foundations as an vehicle producer,” Toyota added.