Daihatsu, the Japanese automaker owned by Toyota, has stopped production at all four of its factories in Japan following admission of falsifying safety test results for its vehicles over a 30-year period.
As a result of the production suspension, which is expected to last until at least the end of January, around 9,000 employees engaged in domestic manufacturing will be affected.
The safety scandal has raised serious concerns for Toyota as the auto-giant stated that it “has shaken the very foundations of the company.” The scandal came to light when Daihatsu announced last week that an independent third-party committee had discovered evidence of tampering with safety tests involving up to 64 vehicle models.
It also includes vehicles sold under the Toyota brand. Consequently, Daihatsu has decided to temporarily halt all domestic and international vehicle shipments, adding that it would engaged with authorities to determine how to move forward.
This is the second time this year the company has found itself in a major controversy. Earlier in April, it admitted that it had violated crash test standards for over 88,000 cars. Most of these cars were sold under the Toyota brand in Malaysia and Thailand.
In that case, Daihatsu revealed that “the inside lining of the front seat door was improperly modified” for some checks. Furthermore, in its statement, it also admitted to non-compliance with regulatory requirements for certain side collision tests.
The latest investigation has badly affected the company’s reputation. The investigation committee in its report, released last week, stated that it has discovered 174 more cases of Daihatsu manipulating data.
Toyota attempted some damage control after its shares dropped 4% in Tokyo last Thursday by issuing a statement. The Japanese automaker stated that “fundamental reform is needed to revitalize Daihatsu.” However, it acknowledged that this significant task can not be accomplished overnight.
