World (LNW): Daihatsu Motor has temporarily suspended all domestic production due to a safety testing scandal affecting most of its models.
The last factory affected, located in Osaka Prefecture, responsible for assembling the Copen minivehicle, ceased operations on Tuesday.
The suspension is anticipated to continue at least until the end of January, impacting over 8,000 suppliers and parent company Toyota Motor.
Daihatsu, a subsidiary of Toyota since 2016, typically produces 4,000 cars daily in Japan, totaling approximately 870,000 units in the last fiscal year.
The decision to halt production comes in the wake of a scandal involving safety test manipulations dating back to 1989.
Following a raid by Japan’s transport ministry, a third-party investigation revealed 174 issues across 64 models, raising concerns about compliance with safety regulations.
The investigation primarily focuses on airbag control units, with discrepancies observed between crash test units and those installed in consumer vehicles.
While the former met industry standards, Toyota acknowledged that side-collision test results for Daihatsu Cast and Toyota Pixis models “may not comply with the law.”
Toyota has not reported any accidents or incidents related to the safety issues.
Daihatsu, known for its popular kei minicars, accounts for approximately 4 per cent of the Toyota group’s global vehicle sales.
The production suspension has raised concerns among Daihatsu employees, but the company has reached a compensation agreement with its labor union to partially cover employees’ wages during the hiatus.
The resumption of production remains uncertain, leaving workers anxious about the future.
