Osaka, Japan – Daihatsu Motor, a subsidiary of Toyota, announced the suspension of all domestic production on Tuesday, leaving the restart schedule uncertain amid a safety testing scandal affecting a majority of its models.
The automaker ceased operations at its factory in Osaka Prefecture, responsible for assembling the Copen minivehicle, marking the final halt among its four plants in Japan.
Daihatsu stated on Monday that the suspension would extend at least through the end of January, delivering a significant blow not only to its more than 8,000 suppliers but also impacting its parent company, Toyota Motor.
As a key player in Toyota’s portfolio, Daihatsu typically manufactures 4,000 cars daily in Japan, with about 9,000 employees at its domestic factories as of April. In the last fiscal year, the company produced approximately 870,000 units.
The suspension follows a scandal involving manipulated safety test results dating back to 1989, prompting a raid by Japan’s transport ministry on Daihatsu’s Osaka headquarters last week. A third-party investigation, initiated by Daihatsu in April when suspicions arose, identified 174 issues across 64 models, including some sold under the Toyota brand.
The focus of the investigation centers on air bag control units, revealing disparities between crash test devices and those used in vehicles sold to the public. While the alternative test units eventually met industry standards, Toyota acknowledged that side-collision test results for Daihatsu Cast and Toyota Pixis models “may not comply with the law.”
Toyota has emphasized that there are no reported accidents or incidents linked to the safety testing issue.
Daihatsu, known for its popular lineup of kei minicars and lightweight vehicles in Japan and Southeast Asia, has been a wholly owned subsidiary of Toyota since 2016, contributing to approximately 4% of Toyota group’s global vehicle sales.
The production halt has raised concerns among Daihatsu employees, but the company revealed on Monday that it reached a compensation agreement with its labor union to partially cover employees’ wages during the production stoppage. A 36-year-old worker from the Osaka plant expressed concern, stating, “There has been no explanation about whether the company will be able to resume production. I’m worried.”
