Daihatsu Motor Establishes Third-Party Committee To Remove Irregularities

The Daihatsu Crash Gate scandal last month revealed a number of irregularities about the Japanese car maker. The scandal was hugely embarrassing for the company and for its parent company Toyota.

But the company is committed to eradicating any and all forms or irregularities from its business, according to a report uploaded to its website.

The report states:

Daihatsu has expressed its sincere apologies for the inconvenience caused by its actions, and shipments and sales have resumed at destinations where safety has been confirmed under the supervision of government certification and inspection agencies in each country where the products are to be sold.

Daihatsu feels that these procedural flaws in car safety are socially unacceptable. The frontline in this case spoke up in the form of a whistleblowing report. Daihatsu feels that these anomalies happened due to management’s inability to respond to the frontline, jeopardising compliance and the development of a strong corporate culture.

As a result, the corporation lost sight of proper automobile manufacturing, resulting in such abnormalities by creating a situation in which the frontline had no alternative. Daihatsu will work tirelessly to change the company so that the same mistakes do not occur again.

Daihatsu will ensure that these errors are not just a single business act, but rather a reform that is tied to the corporate group’s concept and action standards. Management will immediately prioritise communication with the front lines and create an environment in which people can speak openly and honestly.

Daihatsu announced the formation of an Independent Third-Party Committee comprised of legal and technical experts from outside sources.

The following is the outline of the Independent Third-Party Committee, which will be independent and will meticulously explore the underlying cause of the anomalies. Daihatsu plans to fully cooperate with the inquiries of the Independent Third-Party Committee.

Reasons for establishing the Independent Third-Party Committee:

  • Daihatsu intends to fully clarify the nature of the irregularities, identify their root cause, and implement measures to prevent recurrence.

The composition of the Independent Third-Party Committee:

  • Committee Chair: Makoto Kaiami, lawyer at Otemachi Law Office (Former President, Tokyo District Court and Presiding Judge, Tokyo High Court)
  • Committee member: Hidetaka Nishina, partner, lawyer at NAKAMURA, TSUNODA & MATSUMOTO
  • Committee member: Kanji Nakayama, director at the Automobile Information Network Association (Former Director-General, Engineering and Safety Department, Road Transport Bureau, Ministry of Land, Infrastructure, Transport and Tourism)

Daihatsu has ordered the Independent Third-Party Committee to conduct all necessary investigations, report the findings, and recommend actions to prevent similar irregularities from occurring again. Upon receipt of the reports, the corporation will promptly disclose them and take all other necessary actions.

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