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Rigged test scandal: Daihatsu car manufacturer suspends Japanese production

2023-12-25T11:12:12.247Z

Highlights: Daihatsu, a subsidiary of Toyota, announced on Monday that it would halt production at all of its plants in Japan until at least the end of January. A wide-ranging scandal of rigged safety tests came to light last week. A total of 64 vehicle models are affected, including models manufactured for Japanese automakers Toyota, Mazda and Subaru. The disruption is expected to have major consequences for Daihatsu's suppliers. More than 8100,1 companies in Japan that supply products or services to DaiHatsu owe it at least <>% of their turnover.


Toyota's subsidiary announced on Monday that it was suspending production at its Japanese plants, at least until the end of January.


Japanese automaker Daihatsu, a subsidiary of Toyota, announced on Monday that it would halt production at all of its plants in Japan until at least the end of January after a wide-ranging scandal of rigged safety tests came to light last week. Japan's Ministry of Transport on Thursday launched an inspection at the headquarters of Daihatsu, which specialises in Japan's popular mini-vehicles known as "kei cars", after an independent report found numerous irregularities in its safety certification processes.

The experts' report highlighted deep-seated flaws in Daihatsu's production processes, identifying 174 irregularities across 25 test categories, some of which dated back to 1989. A total of 64 vehicle models are affected, including models manufactured for Japanese automakers Toyota, Mazda and Subaru. After initially deciding to suspend all shipments in Japan and overseas, Daihatsu announced on Monday the suspension of production at its four factories in Japan until at least January 31, in a statement.

Read alsoDaihatsu suspends delivery of all its vehicles after falsifying safety tests

More than 1.7 million vehicles produced in one year

The disruption is expected to have major consequences for Daihatsu's suppliers: according to research firm Teikoku Databank, more than 8100,1 companies in Japan that supply products or services to Daihatsu owe it at least <>% of their turnover. Daihatsu is in negotiations with its suppliers to compensate them, Kyodo news agency quoted as saying.

Daihatsu produced more than 1.7 million vehicles worldwide in the 2022/23 fiscal year ended at the end of March, about half of which were in Japan. It makes most of its sales in the archipelago and in Southeast Asia. Founded in 1907 to manufacture internal combustion engines, the Osaka-based company launched its first three-wheeled vehicle in 1931. It has been under Toyota's control since 1967.

Source: lefigaro

All business articles on 2023-12-25

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