Toyota-Daihatsu Didera Skandal

Summary

Daihatsu has temporarily halted the distribution of all its vehicles, both in Japan and abroad, following a major regulatory scandal involving falsified side crash safety tests and improper hybrid vehicle certifications. The issue, which initially affected 88,000 units mostly sold under the Toyota brand, has expanded to 64 car models, including several Toyota vehicles. An independent investigation revealed systemic problems in Daihatsu's management, including extreme pressure, lack of expertise, and non-transparency. While Japanese authorities have begun inspections, Toyota and Daihatsu assure that vehicles sold in Indonesia remain safe, with no recalls planned, highlighting the global ripple effects of this complex scandal.

Takeaways

• ⚠️ Daihatsu temporarily stopped distribution of all models in Japan and abroad due to a regulatory violation scandal.
• 🚨 The scandal started when Daihatsu admitted to cheating on side crash safety tests for 88,000 units, mostly sold under the Toyota brand.
• 🛠 Tens of thousands of affected vehicles were produced in Thailand and Malaysia in 2022 and 2023.
• 📋 Daihatsu was also found to have improperly obtained government certification for hybrid vehicles in Japan.
• 🔍 An independent investigation found 174 irregularities in 25 testing and inspection categories, increasing the total affected models to 64.
• 🏭 The scandal was linked to tight development schedules, lack of expertise among managers, and non-transparent work practices at Daihatsu.
• 🚗 Toyota was affected because some of its branded cars failed side crash tests due to Daihatsu's manipulation, forcing temporary suspension of shipments.
• 🧪 Technical verification revealed differences in airbag control units for some models, affecting side crash evacuation performance despite airbags meeting basic standards.
• 🌏 Internationally affected models include Toyota Avanza, Yaris, Vios, Yaris Cross, Daihatsu Agya, and Rush, including units sold in Indonesia.
• 🇯🇵 The Japanese Ministry of Transportation conducted inspections at Daihatsu headquarters, causing Toyota shares to drop nearly 4% in Tokyo.
• 🇮🇩 In Indonesia, PT Toyota Astra Motor confirmed there will be no recalls, assuring that all locally marketed vehicles meet safety and quality standards.
• ⚖️ The scandal serves as a warning to all car manufacturers about the importance of strictly following certification and safety standards.

Q & A

What triggered the Daihatsu and Toyota safety test scandal?

The scandal began when Daihatsu admitted to cheating on side crash safety tests for 88,000 units, most of which were sold under the Toyota brand. This was followed by revelations of improper government certification for hybrid vehicles.

How did Toyota become involved in the Daihatsu safety test scandal?

Toyota became involved because many of the affected vehicles were sold under the Toyota brand, making it a key player in the scandal. Toyota also had to halt the distribution of some models due to the violations committed by its subsidiary, Daihatsu.

How many models were affected by the scandal?

The scandal affected 64 car models, including 22 sold under the Toyota brand. Among the models involved were vehicles produced in Thailand and Malaysia in 2022 and 2023.

What were the primary issues uncovered in the independent investigation into Daihatsu?

The investigation revealed 174 irregularities across 25 categories of testing, including errors in crash tests and improper certification of hybrid vehicles. The investigation also pointed out extreme pressure on employees due to tight schedules and a lack of expertise in the management team.

What models did Daihatsu and Toyota halt distribution for in December 2023?

Daihatsu and Toyota halted the distribution of several models, including the Toyota Rumi, Toyota Pixis, and Daihatsu Move, among others. These models were either affected by the side crash safety test manipulation or had issues with airbag control units.

How did the Japanese Ministry of Transportation respond to the scandal?

The Japanese Ministry of Transportation conducted an inspection at Daihatsu’s headquarters in Osaka, showing the government's active involvement in ensuring compliance with safety standards. This action also contributed to a decline in Toyota’s share price.

What has been the impact of the scandal on Toyota’s stock price?

The scandal caused Toyota’s stock price to fall by almost 4% in Tokyo, reflecting the financial and reputational damage caused by the safety violations and the ongoing investigation.

Has Toyota or Daihatsu initiated a recall in Indonesia due to the scandal?

No, there has been no recall initiated in Indonesia. Both Toyota and Daihatsu have stated that their vehicles in Indonesia meet all safety standards and have passed the necessary tests.

How did Daihatsu conduct its internal verification process following the scandal?

Daihatsu carried out internal technical verification and vehicle testing to ensure that safety standards were met. During this process, they discovered discrepancies with airbag control units in some models, but the airbags were ultimately confirmed to meet safety standards.

What lessons can other car manufacturers learn from this scandal?

Other car manufacturers can learn the importance of maintaining rigorous certification standards and ensuring transparency in their testing processes. The scandal highlights the risks of prioritizing production quotas over safety and regulatory compliance.