Toyota Subsidiary Shuts Down After Admitting Falsified Safety Tests
Daihatsu, a subsidiary of Toyota, has shut down its factories in Japan following the admission of falsifying safety tests on vehicles. An independent investigation found problems with 64 vehicle models, leading to the suspension of all vehicle shipments. The investigation revealed 174 new cases of irregularities, including tampering with safety tests and fabricating test data. The shutdown is expected to last through at least the end of January, impacting approximately 9,000 employees and numerous supply chains.
Daihatsu Shuts Down Factories After Falsifying Safety Tests
Daihatsu, the Japanese automaker owned by Toyota, has shut down its factories in Japan, months after the automaker admitted to falsifying safety tests on vehicles, The Associated Press (AP) reported.
The shutdown follows Daihatsu Motor Co.’s announcement last week that it would suspend all vehicle shipments in and outside of Japan after an independent investigation found problems with 64 vehicle models.
Findings of Irregularities in Safety Tests
In the latest probe, the company said investigators found 174 new cases of irregularities in safety tests and other procedures in 25 test categories. This included evidence of tampering with safety tests, creating false information or fabricating test data, the company said.
The release of the probe’s details prompted Japan’s Transport Ministry to begin on-site inspections last week, according to multiple local media reports. These inspections are looking into issues that apparently have been present at the company for decades, with the first irregularity dating back to 1989.
Shutting Down Operations and Impact on Employees
Daihatsu this week said it began shutting down some lines on Monday and halted production at all four Japanese plants in Shiga, Kyoto, and Oita prefectures, along with its headquarters in Osaka on Tuesday, the AP reported.
The company did not say when production will restart, but a company representative told CNN the shutdown is expected to last through at least the end of January.
Daihatsu’s shutdown is expected to impact about 9,000 employees who work in domestic production, a company representative told CNN. Daihatsu factories have supply chains including 8,136 companies across Japan, with total sales equaling about $15.53 billion, the AP reported, citing the market research company Teikoku Databank.
