Daihatsu Motor Co. has announced the suspension of its operations in the month of January. The move follows a protection scandal that has raised serious questions about the company’s compliance with accident protection rules.
The Daihatsu crisis arose in the wake of an investigation that revealed a disturbing trend of manipulation of safety tests dating back to 1989. An independent investigation, launched in April, found that 174 anomalies had been known in 64 models, adding some under the Toyota brand. .
At the heart of this investigation was the discovery that the sets of airbags used in collision controls differed from those installed in cars sold to the public. While subsequent checks have shown that these games meet industry standards, some considerations remain, specifically in relation to the appearance of the accident. check effects of Daihatsu Cast and Toyota Pixis models, which may not comply with legal requirements.
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 scale of the issue is daunting. The irregularities in safety testing led to a recall of 1 million cars in the U.S., affecting not only Daihatsu but also other brands. Production is expected to remain suspended until at least the end of next month, leaving all four vehicle assembly factories offline.
This suspension includes Daihatsu’s popular diversity of kei cars and other soft vehicles, which are popular in Japan and Southeast Asia.
The decision to suspend Daihatsu’s operations has far-reaching consequences. This only affects cars produced in Japan and abroad, but also extends to other major automakers. Daihatsu, known for its parts and production services, collaborates with corporations such as Mazda Motor Corp. and Subaru Corp.
This suspension, therefore, has the potential to disrupt a wide network of automotive production. Hence Daihatsu has pledged to compensate all 423 companies it directly supplies, based on past business volumes.
In reaction to the scandal, Toyota Motor Co. halted deliveries of six car models to several Southeast Asian countries, including Thailand, Indonesia, Malaysia, Vietnam and Cambodia. The affected models, partly evolved through Daihatsu, come with Swift and Advance.
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.
To mitigate the effect of the scandal and manage the crisis, Daihatsu has resumed production of Perodua-branded cars through joint ventures with a Malaysian automaker and shipments from its Indonesian subsidiary.
These steps indicate the company’s active effort to address the situation. However, Daihatsu now faces the daunting challenge of regaining trust and restoring its market position, even as it continues to struggle with the consequences of the safety scandal.
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