{"id":21140,"date":"2023-12-20T11:22:40","date_gmt":"2023-12-20T11:22:40","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=752744"},"modified":"2023-12-20T11:22:40","modified_gmt":"2023-12-20T11:22:40","slug":"toyotas-daihatsu-unit-to-halt-all-vehicle-shipments-in-widening-safety-scandal","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2023\/12\/20\/toyotas-daihatsu-unit-to-halt-all-vehicle-shipments-in-widening-safety-scandal\/","title":{"rendered":"Toyota\u2019s Daihatsu Unit to Halt All Vehicle Shipments, in Widening Safety Scandal"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2023\/08\/logo-of-toyota-at-dealer-in-tokyo-AP-580x387.jpg\"><\/p>\n<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2023\/08\/logo-of-toyota-at-dealer-in-tokyo-AP-scaled.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2023\/12\/20\/752744.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2023\/12\/20\/752744.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"tr-by\">Toyota Motor\u2019s Daihatsu unit will halt shipments of all of its vehicles, Japan\u2019s biggest automaker said on Wednesday, after a safety scandal investigation found issues involving 64 models, including almost two dozen sold under Toyota\u2019s brand.<\/p>\n<p>An independent panel has been investigating Daihatsu after it said in April it had rigged side-collision safety tests carried out for 88,000 small cars, most of those sold as Toyotas.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"auto\" data-revive-companies=\"toyota\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>But the latest revelations suggest the scope of the scandal is far greater and went back much further than previously thought and could potentially tarnish the automakers\u2019 reputation for quality and safety.<\/p>\n<p><strong><a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2023\/05\/01\/718469.htm\" target=\"_blank\" rel=\"noopener\">Toyota-Subsidiary Daihatsu Rigged Safety Tests for 88,000 Cars<\/a><\/strong><\/p>\n<p>Daihatsu is Toyota\u2019s small-car unit and produces a number of the so-called \u201ckei\u201d smaller cars and trucks that are popular in Japan. The latest issues also impacted some Mazda <span id=\"x4\"><span class=\"tr-ric\">7261.T<\/span><\/span> and Subaru <span id=\"x5\"><span class=\"tr-ric\">7270.T<\/span><\/span> models sold in the domestic market and Toyota and Daihatsu models overseas, the panel found.<\/p>\n<p>Toyota said \u201cfundamental reform\u201d was needed to revitalize Daihatsu, as well as a review of certification operations.<\/p>\n<p>\u201cThis will be an extremely significant task that cannot be accomplished overnight,\u201d Toyota said in a statement. \u201cIt will require not only a review of management and business operations but also a review of the organization and structure.\u201d<\/p>\n<p>Toyota said it could not yet determine the financial impact of the matter. Its shares closed flat on Wednesday, lagging a 1.4% rise in the broader market.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"auto\" data-revive-companies=\"toyota\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p><strong>On-Site Inspection<\/strong><\/p>\n<p>The investigation found that the airbag control units used by Daihatsu in airbag tests for some models were different from the ones used in cars sold to the public, including Toyota\u2019s Town Ace and Pixis Joy models and the Mazda Bongo.<\/p>\n<p>Toyota said it was not aware of any accidents related to the issue. It said side-collision tests of two models may not be law compliant even as verifications confirmed that the airbag met passenger safety standards.<\/p>\n<p>Japan\u2019s transport ministry said it would carry out an on-site inspection at Daihatsu\u2019s headquarters in Osaka on Thursday.<\/p>\n<p>Daihatsu executives told a press conference the overseas shipments will be suspended until the vehicles are cleared for sales again by regulators.<\/p>\n<p>\u201cThe situation is extremely serious,\u201d Daihatsu President Soichiro Okudaira said, adding that any regulatory clearances the automaker received through fraudulent means could be revoked by law.<\/p>\n<p>The misconduct also included false reports on headrest impact tests and test speeds for some models. The investigation found cases of misconduct were particularly prevalent after 2014 and, for one already-discontinued Daihatsu vehicle, went back as far as 1989.<\/p>\n<p>Makoto Kaiami, the chair of the third-party investigation committee, said the panel did not believe that Toyota was responsible for the misconduct, but that Daihatsu was trying to meet expectations it had placed on itself.<\/p>\n<p>The issue emerged after Daihatsu said in April it had discovered the wrongly conducted tests after a whistleblower report. It had reported the issue to regulatory agencies and halted shipments of affected models.<\/p>\n<p>The following month, it said it had stopped sales of the Toyota Raize hybrid electric vehicle and its own Rocky model after also finding problems with testing for those models.<\/p>\n<p><strong>Previous Safety Issues<\/strong><\/p>\n<p>Daihatsu produced 1.1 million vehicles over the first 10 months of the year, nearly 40% of those at overseas sites, according to Toyota data. It sold some 660,000 vehicles worldwide over that period and accounted for 7% of Toyota\u2019s sales.<\/p>\n<p>Toyota said on Wednesday affected models included those for the Southeast Asian markets of Thailand, Indonesia, Malaysia, Cambodia and Vietnam and Central and South American countries of Mexico, Ecuador, Peru, Chile, Bolivia and Uruguay.<\/p>\n<p>Daihatsu is the latest safety issue to impact the Toyota group over the years.<\/p>\n<p>An engine data scandal at Toyota\u2019s truck- and bus-making unit, Hino Motors <span id=\"x6\"><span class=\"tr-ric\">7205.T<\/span><\/span>, in 2022 led to resignations and temporary pay cuts for some managers.<\/p>\n<p>In that case Hino admitted to falsifying data on some engines dating back to 2003, or at least a decade earlier than it originally indicated.<\/p>\n<p>In 2010 Toyota Chairman Akio Toyoda, then chief executive, was forced to testify before U.S. Congress due to a safety crisis involving faulty accelerators.<\/p>\n<p class=\"tr-signoff\">(Reporting by Daniel Leussink; writing by David Dolan; editing by Muralikumar Anantharaman)<\/p>\n<p><em>Photograph: A logo of Toyota Motor Corp. is seen at a dealer on May 11, 2022, in Tokyo. (AP Photo\/Eugene Hoshiko, File)<\/em><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/auto\/\" class=\"btn btn-sm btn-primary tagtag\">Auto<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"752744\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! Please tell us what we can do to improve this article.<\/p>\n<p> <textarea placeholder=\"Enter your feedback...\"><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button> <\/form>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-yes\">\n<form class=\"feedback-form\">\n<p>Thank you! <span class=\"percent\"><\/span>% of people found this article valuable. 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