Daihatsu Overhaul: Toyota Steps In to Ensure Safety and Compliance

Following a safety testing scandal at its subsidiary Daihatsu, Toyota Motor Corp has announced measures to regain trust among dealers, customers, and workers. Daihatsu’s new president, Masahiro Inoue, stated that Toyota will oversee model certification at Daihatsu, taking a leadership role in various areas including product development and procurement.


The scandal involved allegations of widespread cheating on safety testing, leading to production halts and a government order for proper tests and prevention measures. Inoue, who previously oversaw Toyota’s business in South America, apologised for the misconduct and vowed to revive Daihatsu.

In addition to oversight by Toyota, Daihatsu aims to improve communication among ranks, prioritise safety over market share, and change the basic way people work within the company. Toyota has also taken internal actions, with 10 former Daihatsu management members returning their bonuses for the financial year 2023.

The returned bonuses include those of former chairman Sunao Matsubayashi, former President Soichiro Okudaira, and executive vice president Hiromasa Hoshika. Director Yusuke Takeda and Toshinori Edamoto will return 50%, while other chief officers will return between 10% to 50%.

Furthermore, Daihatsu announced the abolition of the job titles of Executive Manager and Deputy Executive Manager to streamline reporting structures, following an earlier decision to abolish the position of Chairman. These measures aim to address the procedural irregularities and foster a culture of compliance and accountability within Daihatsu.

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