Daihatsu Halts Car Production Across Japan During Safety Investigation

27 Dec, 2023

Daihatsu Halts Car Production Across Japan During Safety Investigation

Daihatsu has taken a drastic measure, shutting down all its four factories in Japan while an inquiry by transport ministry officials delves into improper safety certification tests. This shutdown follows Daihatsu's recent suspension of vehicle shipments worldwide due to the discovery of irregular testing involving 64 models. An independent panel investigation revealed systematic issues within the company's safety testing procedures.

Amid the ongoing probe by transport ministry officials, Daihatsu confirmed the closure of its plants in Shiga, Kyoto, Oita prefectures, and its headquarters in Osaka. Production is anticipated to remain halted until the end of the upcoming month. This suspension could potentially impact numerous car parts manufacturers and their employees, posing a threat to local economies.

In response to this shutdown, Daihatsu has committed to compensating 423 domestic suppliers directly associated with the company and is actively assessing the implications of the stoppage on its expansive network of suppliers. This development echoes the scrutiny faced by several major Japanese car manufacturers in recent years over safety and compliance issues.

The discrepancies uncovered span across 64 models and three vehicle engines, including 22 models and an engine linked to Toyota. These issues extend to certain Mazda and Subaru models in Japan, as well as Toyota and Daihatsu models sold internationally. Daihatsu's internal investigation revealed an additional 174 instances of irregularities in safety tests and procedures across various testing categories, compounding on earlier reported problems.

The saga began in April with Daihatsu disclosing improper door lining tests, followed by issues in side collision testing in May. Further investigation exposed data falsification and unauthorized testing practices. Daihatsu's President, Soichiro Okudaira, admitted to safety test misconduct, equating it to neglecting safety certifications. He attributed these problems to the immense pressure on workers to meet stringent development deadlines.