Toyota’s Daihatsu Unit Halts Shipments After Safety Scandal Investigation
TOKYO—Toyota Motor’s Daihatsu unit will halt shipments of all of its vehicles, Japan’s biggest automaker said on Wednesday, after a safety scandal investigation found issues involving 64 models, including almost two dozen sold under Toyota’s brand.
Scope of the Scandal
An independent panel has been investigating Daihatsu after it said in April it had rigged side-collision safety tests carried out for 88,000 small cars, most of those sold as Toyotas. But the latest revelations suggest the scope of the scandal is far greater and went back much further than previously thought and could potentially tarnish the automakers’ reputation for quality and safety.
Impact on Daihatsu and Toyota
Daihatsu is Toyota’s small-car unit and produces a number of the so-called “kei” smaller cars and trucks that are popular in Japan. The latest issues also impacted some Mazda and Subaru models sold in the domestic market and Toyota and Daihatsu models overseas, the panel found.
Toyota said “fundamental reform” was needed to revitalize Daihatsu, as well as a review of certification operations. “This will be an extremely significant task that cannot be accomplished overnight,” Toyota said in a statement. “It will require not only a review of management and business operations but also a review of the organization and structure.”
On-site Inspection and Suspension of Shipments
The investigation found that the airbag control units used by Daihatsu in airbag tests for some models were different from the ones used in cars sold to the public, including Toyota’s Town Ace and Pixis Joy models and the Mazda Bongo. Toyota said it was not aware of any accidents related to the issue.
Japan’s transport ministry said it would carry out an on-site inspection at Daihatsu’s headquarters in Osaka on Thursday. Daihatsu executives told a press conference the overseas shipments will be suspended until the vehicles are cleared for sales again by regulators.
Previous Safety Issues at Toyota
Daihatsu is the latest safety issue to impact the Toyota group over the years. In 2010, Toyota Chairman Akio Toyoda, then chief executive, was forced to testify before U.S. Congress due to a safety crisis involving faulty accelerators. An engine data scandal at Toyota’s truck- and bus-making unit, Hino Motors, in 2022 also led to resignations and temporary pay cuts for some managers.
Toyota said it could not yet determine the financial impact of the matter. Its shares closed flat on Wednesday, lagging a 1.4 percent rise in the broader market.
