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Home Tech Automobiles

Daihatsu Safety Issue Leads to Temporary Export Suspension by Toyota in Several Asian Countries

by Ashmita Maria
December 25, 2023
in Automobiles, Business, Cars, Manufacturing, Market, Sale, Tech
Reading Time: 2 mins read
0
Officials from the transport ministry enter Daihatsu Motor's headquarters in Ikeda

Credits: KYODO/ The Japan Times

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The automotive industry is currently facing a significant scandal involving Daihatsu Motor Co., a subsidiary of Toyota Motor Co. This scandal, which centers around safety-test rigging and data manipulation, has far-reaching implications, affecting not only Daihatsu but also other major car manufacturers like Toyota, Mazda, and Subaru.

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The revelation of these practices has sent shockwaves through the industry, underscoring the critical importance of integrity and transparency in vehicle safety standards.

Toyota Motor Co. has taken immediate action in response to the scandal, halting shipments of six car models in several Southeast Asian countries, including Thailand, Indonesia, Malaysia, Vietnam, and Cambodia. The models affected, which were partly developed by Daihatsu, include the Veloz and Avanza.

This decision follows an investigation that uncovered Daihatsu’s failure to properly test its vehicles for collision safety. While the affected shipments represent about 5% of Toyota’s production in Asia, the move highlights the gravity of the situation and Toyota’s commitment to addressing the issue.

The scope of the scandal extends beyond Daihatsu and Toyota, implicating a range of vehicles from the 1980s to the present. An investigation in Japan revealed that production cars built for sale were fitted with different airbag control units compared to their crash-test counterparts. Additionally, false reports on headrest impact tests and test speeds for some models were identified, with irregularities dating back as far as 1989.

The investigation uncovered 174 new cases across 25 test items, in addition to previously identified irregularities. These issues were found in 64 models and 3 engines, including those already discontinued. The widespread nature of the scandal has led Daihatsu to issue a deep apology to its customers and stakeholders for betraying their trust and causing inconvenience and concern.

The Japanese government has responded with seriousness, with Japan’s Chief Cabinet Secretary urging Daihatsu officials to fully explain the situation. The nation’s transport ministry has initiated on-site inspections at Daihatsu’s Osaka headquarters. This scandal has not only damaged the trust of car owners but has also shaken the foundation of the automobile certification system in Japan.

The international impact of this scandal is significant, especially considering Toyota’s global presence. Toyota’s stock price slid 4% in the wake of these revelations, reflecting the market’s reaction to the unfolding situation. This scandal serves as a grim reminder that automakers must prioritize customer safety and adhere to stringent testing and reporting standards.

In the wake of the scandal, there are growing concerns about the broader implications for the automotive industry. The revelation of such practices raises questions about the reliability of safety standards and the potential risks to consumers. It also highlights the need for more stringent regulatory oversight and the importance of ethical practices in the industry.

The Daihatsu scandal represents a critical moment for the automotive industry, highlighting the need for transparency and integrity in safety testing and reporting. As the industry navigates this challenging period, it is imperative for manufacturers to rebuild trust with consumers and regulatory bodies, ensuring that safety remains the paramount concern in vehicle production and certification.

Daihatsu safety scandal is a wake-up call for the automotive industry. It underscores the importance of adhering to ethical practices and maintaining rigorous safety standards. As the industry works to address these issues, it is crucial for manufacturers to demonstrate their commitment to safety and regain the trust of consumers worldwide.

Tags: Daihastu Safety TestDaihatsu ScandalSubaruToyota Stock
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Ashmita Maria

A detail-oriented and organized individual who believes in the power of bringing a change through research based policy-making. With an interest in the varied fields of development and labour economics, political writing and filmmaking, I write when I'm not intellectualizing my problems :)

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