Daihatsu, an automaker owned by Toyota, has announced the temporary closure of all four of its manufacturing facilities until the conclusion of January subsequent to its admission of conducting fraudulent safety tests.
Daihatsu acknowledged that for thirty years it had manipulated safety tests on sixty-four brands. On December 25, its headquarters in Osaka, Japan, was the last to cease operations.
The scandal poses a threat to 9,000 employees within the nation and has the potential to damage the reputation of the multinational automobile manufacturer Toyota. 24 of the 64 models implicated in the controversy are manufactured under the Toyota brand.
In the aftermath of the shutdown of production lines in the prefectures of Oita, Shiga, and Kyoto, the company's Osaka factory halted operations. On Wednesday, Daihatsu issued the announcement that it has suspended all car shipments in response to its most recent admission, which was made after a probe was conducted by the ministry of transportation.
There is evidence to suggest that the findings of the tests were fabricated in order to keep production going.
The company announced that it would work along with its key suppliers to alleviate the effects of the scandal. Additionally, the company stated that it would potentially assist its smaller subcontractors who are not rewarded in acquiring access to assistance money from the Japanese transport ministry. In addition, it announced that it would compensate 423 domestic suppliers with whom it has direct business relations during the period in which the plant was not operating.
Established in 1907, Daihatsu produces an estimated 1.1 million automobiles annually, accounting for approximately 10% of Toyota's annual vehicle sales of 10 million. According to sources, this matter first surfaced in April, when collision test falsifications were the subject, as reported by automotive industry analyst David Bailey. A Toyota-led independent commission subsequently discovered further flaws, including in the speed tests and air bags.
At this time, there are no indications that the products were hazardous; nevertheless, it seems that they proceeded with the sale of a vehicle containing different components, despite having previously tested and sold a vehicle containing those components; thus, this has escalated into a significant concern.
In 2009, a recall involving defective accelerator pedals and floor mats damaged Toyota's reputation. In 2012, the automaker recalled over seven million vehicles globally, including models of the Yaris, Corolla, and Camry, due to defective window switches. As a result of the recalls, Toyota was "radically altered," according to Mr. Bailey.
He continued by stating that while the company ceased its rapid expansion, refocused on quality, and even employed outsiders to verify quality, this did not appear to have occurred with its subsidiary Daihatsu.
According to the assertions of a number of analysts, the drive for expansion has had an effect on a number of automobile manufacturers. Volkswagen is cited as an example of a company that manufactured diesel vehicles that were found to produce emissions that exceeded the standards that were advertised for them. A violation of the Environmental Protection Act was proclaimed by the United States of America against Volkswagen in the year 2015.