Toyota to Announce Plans for Scandal-Hit Daihatsu Soon

Japanese auto giant Toyota plans to announce in about a month steps to overhaul its small-car specialist Daihatsu after an investigation into misconduct related to rigged safety tests found issues going back decades.

Related: Daihatsu Scandal is a Warning for Japanese Automakers

Toyota CEO Koji Sato while speaking to reporters, said:

“We’re taking this very seriously.”

Toyota will consider whether to break down any boundaries between its business and that of Daihatsu as part of the move, he said, adding that it may dispatch engineers to its wholly-owned subsidiary. Another potential measure includes a change to Daihatsu’s leadership structure, Sato said.

daihatsu boss

Production operations at Daihatsu’s factories in Japan have remained halted since late last month after an independent panel that had been investigating the company found issues involving 64 models, including almost two dozen sold under Toyota’s brand.

Related: More Problems for Daihatsu as Japan’s Ministry Revokes VTAs of 3 Models

Daihatsu, which has been a wholly-owned Toyota subsidiary since 2016, is popular for its lineup of small-sized vehicles in Japan and Southeast Asia. The investigation unveiled last month found the misconduct at Daihatsu included issues such as false reports on impacted tests and test speeds for various models. It found cases of wrongdoing were particularly prevalent after 2014 and went back as far as 1989.

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