Daihatsu, which has been affiliated to Toyota for nearly three decades, has stopped production at its last factory since the 19th, foreign media reports.
This situation is said to have arisen due to problems arising in safety and quality tests that affected 64 models produced by the company. It is reported that the Daihatsu company, which has been facing many crises since as early as 1989, has accepted the situation due to the decline in production standards.
“We betrayed our customers’ trust,” Daihatsu CEO Soichiro Okudaira said at a Tokyo press conference last week. All the blame is on the management.”
On December 20, the company announced that it would suspend shipments of all models pending further investigation and safety testing. Makoto Kaiami, head of the investigation board, said, “It was widely considered unacceptable to change sales schedules due to inspection failures, which created great pressure on employees.”
More than 9,000 employees and 8,000 suppliers were shut down is afflicted. Daihatsu produced about 870,000 vehicles last year, with a business value of ¥2.2 trillion, or $15 billion.
Daihatsu, founded in Osaka in 1907 and taken over by Toyota in 1967, has been negotiating with unions and suppliers over compensation while production is suspended.
With this incident, the safety and reliability that was established for Japanese cars has been damaged to some extent. In 2004, Mitsubishi also admitted that their products had problems