TOKYO (Reuters) -Toyota Motor’s Daihatsu unit will halt shipments of all of its autos, Japan’s greatest automaker stated on Wednesday, after an investigation into a security scandal discovered points at 64 fashions, together with nearly two dozen bought beneath Toyota (NYSE:)’s model.
An unbiased panel has been investigating Daihatsu after it stated in April it had rigged side-collision security checks carried out for 88,000 small automobiles, most of these bought as Toyotas.
However the newest revelations recommend the scope of the scandal is way better than beforehand thought and will probably tarnish the automakers’ repute for high quality and security.
Daihatsu is Toyota’s small-car unit and produces various the so-called “kei” smaller automobiles and vehicles which can be common in Japan. The newest points additionally impacted some Mazda and Subaru (OTC:) fashions bought within the home market and Toyota and Daihatsu fashions abroad, the panel discovered.
Toyota stated “elementary reform” was wanted to revitalise Daihatsu, in addition to a assessment of certification operations.
“This might be an especially vital job that can not be achieved in a single day,” Toyota stated in a press release. “It can require not solely a assessment of administration and enterprise operations but additionally a assessment of the organisation and construction.”
Toyota shares had been flat on Wednesday afternoon, lagging a 1.6% rise within the broader market.
Daihatsu was discovered to have cheated on security checks of virtually all fashions it presently has in manufacturing in addition to some automobiles it made up to now, the Asahi newspaper beforehand reported.
The problem emerged after Daihatsu stated in April it had found the wrongly carried out checks after a whistleblower report. It had reported the problem to regulatory companies and halted cargo of affected fashions.
The next month, it stated it had stopped gross sales of the Toyota Raize hybrid electrical car and its personal Rocky mannequin after additionally discovering issues with testing for these fashions.
Daihatsu produced 1.1 million autos over the primary 10 months of the yr, almost 40% of these at abroad websites, based on Toyota knowledge. It bought some 660,000 autos worldwide over that interval and accounted for 7% of Toyota’s gross sales.
Toyota stated on Wednesday affected fashions included these for the southeast Asian markets of Thailand, Indonesia, Malaysia, Cambodia and Vietnam and central and South American nations of Mexico, Ecuador, Peru, Chile, Bolivia and Uruguay.
Daihatsu is the newest security concern to affect the Toyota group through the years.
An engine knowledge scandal at Toyota’s truck- and bus-making unit, Hino Motors, in 2022 led to resignations and short-term pay cuts for some managers.
In that case Hino admitted to falsifying knowledge on some engines relationship again to 2003, or not less than a decade sooner than it initially indicated.
In 2010 Toyota Chairman Akio Toyoda, then chief govt, was pressured to testify earlier than U.S. Congress as a consequence of a security disaster involving defective accelerators.
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