13 February 2024 , 12:35
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Japanese car maker Daihatsu, part of the Toyota group, has announced a shake-up in its leadership as it tries to recover from a scandal involving vehicle safety tests.
The problems at Daihatsu came to light after a whistleblower said the company had not beenn carryong out safety tests correctly. An independent review found that the company had been breaking rules for years, such as only testing one side of a car when both sides needed to be checked.
Toyota is showing its commitment to making changes at Daihatsu, which it owns completely, by appointing a new president, executive vice president and director. Masahiro Inoue, who currently oversees Toyota's business in South America, will take over as President of Daihatsu in March, according to Toyota Chief Executive Koji Sato.
Inoue will replace Soichiro Okudaira, who is stepping down. Okudaira was also brought in by Toyota. Daihatsu's chairman, Sunao Matsubayashi, has also resigned, while two other directors have left the board but remain with the company. Masanori Kuwata, currently at Lexus International Co., Toyota's luxury brand, will become Daihatsu's Executive Vice President. Keiko Yanagi, a deputy chief officer at Toyota, has been appointed as a director at Daihatsu.
Inoue has apologised to Daihatsu's customers, suppliers and dealers, saying: "We will make our hearts one and aim for a new start," He also said his experience working overseas has taught him how to win people's trust by being a good listener.
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The appointments show Toyota's determination to lead reforms at its wholly-owned subsidiary, Daihatsu, and prevent any future scandals. Inoue revealed that a business plan, including a new managerial direction, will be disclosed in April.
The Japanese government has ordered production to stop on several Daihatsu models until proper tests can be carried out and approved. The companies have said some production has already resumed, but work on other models will take time.
No major accidents have been reported due to the cheating, but it has raised serious questions about oversight at Daihatsu and its parent company, Toyota. Daihatsu admitted its workers were under heavy pressure to meet tight deadlines and management failed to address problems on the factory floor.
Daihatsu has recently handed an investigation of its wrongdoing to the Japanese government. Known for small models popular in Japan and the rest of Asia, Daihatsu employs 40,000 people and has a history spanning 100 years.
Daihatsu's products, known as "kokuminsha" or "the people's cars," in Japan, are often used by small businesses for deliveries and transport. Sato said this embodies the spirit of Daihatsu.
He said that Daihatsu is set to mend its company ways, leadership and "monozukuri," which means making stuff. It's a big part of the Toyota Way of making things that lets each worker have their say. "We are ready to return to our roots to recreate Daihatsu," he declared.