Toyota halts all Daihatsu shipments over protection scandal

The manipulated effects reveal that 88,000 cars manufactured in Thailand and Malaysia are not subject to crash protection tests.

TOKYO: Toyota Motor Corp has suspended all shipments from its subsidiary Daihatsu Motor Co after a scandal revealed that most of its vehicles had undergone extensive crash safety tests.

Some 174 irregularities have been identified since April when suspected wrongdoings first emerged, Toyota said Wednesday. “Fundamental reform” is needed to revitalise Daihatsu, it said.

Previously six models were thought to be affected by the manipulated test results, but the company now says almost every car in Daihatsu’s line-up could be affected. Japan’s transport ministry said it will conduct an on-site inspection on Thursday morning local time.

Daihatsu Chairman Soichiro Okudaira and Toyota will hold a press conference later on Wednesday, following a briefing through a committee investigating misconduct.

Daihatsu admitted in April to falsifying the crash effects of 88,000 cars made in Thailand and Malaysia and sold over the past year.

Daihatsu produced more than 1. 7 million cars internationally in fiscal 2022, about a portion of which were made in Japan. It has a market share of around 30% for kei cars (small-sized cars that have been among domestic consumers for years), making it an industry leader along with rival Suzuki Motor Corp.

Daihatsu, which is based in Osaka, is known for its line-up of lightweight vehicles and sedans that are widely popular across Japan and Southeast Asia, include the Gran Max pickup and vans, and Terios and Xenia passenger vehicles.

It has been a wholly-owned subsidiary of Toyota since 2016 and accounts for approximately 4% of Toyota Group vehicle sales.

“Since 2013, Toyota has received an increased number of OEM models from companies, primarily compact vehicles,” the world’s largest automaker said in a statement.

“We are deeply convinced that the progression of those cars would possibly have been a burden on Daihatsu and that we were not aware of the prestige of the company’s certification operations. “

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