Daihatsu Faces Lengthy Road Ahead Following Safety Test Result Fraud

The Japanese government recently ordered Toyota to halt production as a result of faked safety test results. These reports were the result of an investigation that uncovered 174 cases of faked tests that affected many models, including those sold under the Toyota Motor Corp. nameplate. This widespread cheating extended back 30 years, shaking consumer confidence in the Toyota brand and raising concerns about the company’s overall governance.

The scandal, which emerged after a whistleblower came forward in April of the previous year, has prompted Daihatsu to promise sweeping reforms of its corporate culture. They have attributed the cheating to pressure on workers to meet tight deadlines. Consequently, the government-approved five of the company’s models after more testing, though its factories remain shuttered as it awaits parts from suppliers. Additionally, Daihatsu President Soichiro Okudaira has stated that the company may issue recalls for the affected vehicles.

The cheating by Daihatsu, now known for kei cars and their hybrid sport-utility vehicles, such as the Toyota Raize and Daihatsu Rocky, has raised serious questions about the oversight at Daihatsu and its corporate parent, Toyota. Corporate manager Keita Ide highlighted a need to win back customer trust in terms of safety and security. He emphasized that the company is diligently formulating a plan to prevent any cheating in the future.

The Toyoto group as a whole has faced similar scandals in the past, Hino and Toyota Industries Corp. were both involved. There is growing concern about the leadership of Chairman Akio Toyoda, raising questions about the overall governance of the Toyota brand. Major changes may be necessary for the company to regain the trust of consumers. These revelations point to a pressing need for the Toyota group to reevaluate its governance and oversight structures in order to restore consumer trust in the brand.