Discussion –ย 


Discussion –ย 


Daihatsu Halts Production Amid Safety Concerns

Daihatsu’s Plant Closures and Admission

Daihatsu, a carmaker under the Toyota umbrella, has taken a significant step by closing all its four manufacturing plants until the end of January. This decision comes after the company confessed to falsifying safety tests. Based in Osaka, Japan, Daihatsu’s headquarters was the final facility to cease operations on December 25th.

The Scope of the Deception

A startling revelation by Daihatsu reveals a concerning pattern. The carmaker admitted to manipulating safety tests on a whopping 64 models spanning over three decades. Alarmingly, of these affected models, 24 bear the Toyota emblem, thereby casting a shadow over the global car giant’s credibility.

Immediate Repercussions and Industry Implications

The repercussions of this revelation are widespread. The shutdown in Osaka follows earlier closures in other key production locations, namely Oita, Shiga, and Kyoto prefectures. Daihatsu’s decision to halt shipments of all its vehicles post this admission, as a result of a transport ministry probe, underscores the gravity of the situation. It appears that the urgency to maintain production momentum might have driven the company to falsify test results.

Addressing the Fallout and Ensuring Compensation

In response to the crisis, Daihatsu has expressed its commitment to working closely with primary suppliers to navigate the aftermath of this scandal. Furthermore, the company has extended a gesture of support towards its smaller subcontractors by facilitating access to support funds provided by Japan’s transport ministry. During the plant shutdown period, Daihatsu has also pledged to compensate 423 domestic suppliers with whom it has direct business affiliations.

A Deep Dive into the Issue

Motor industry expert David Bailey provided insights into the unfolding scenario. He stated, “This first started in April where the issue was about collision tests being falsified. Then, an independent commission by Toyota found more issues including air bags and speed tests. There’s no suggestion at the moment that the actual products were unsafe, but what seems to have happened is that they tested a car with components in and then sold a car with different components in, so that’s become a major issue”.

Historical Context and Industry Reflections

This isn’t the first instance of a major car manufacturer facing a reputational crisis. Toyota itself grappled with significant setbacks in 2009 and 2012 due to recalls over various component faults. Mr. Bailey remarked on Toyota’s journey since then, noting a renewed focus on quality control and external oversight. However, it appears that these stringent measures were not uniformly applied across all subsidiaries, as evidenced by the current Daihatsu situation.

Drawing parallels, many industry analysts point to the pressures faced by automakers globally. The Volkswagen emissions scandal in 2015 serves as a poignant example. The US Environmental Protection Agency found that VW had violated environmental standards, leading to widespread repercussions.

In conclusion, as the automotive industry navigates these challenges, transparency, accountability, and a renewed commitment to quality will be paramount for rebuilding trust among consumers and stakeholders alike.



  1. BBC News – Daihatsu Shuts Down Plants Amidst Safety Scandal
  2. Japan Today – Daihatsu Admits to Safety Test Manipulation
  3. Reuters – Toyota’s Image at Stake with Daihatsu’s Revelation
  4. The Guardian – Daihatsu Plant Closures Continue
  5. Transport Ministry Report on Daihatsu’s Admissions
  6. Automotive World – Pressure and Falsification in Safety Tests
  7. Japan’s Transport Ministry Support Fund Details
  8. Daihatsu’s Official Statement on Supplier Compensation
  9. BBC’s World Service – Motor Analyst David Bailey’s Insights
  10. Toyota’s Previous Recalls: A Retrospective
  11. Financial Times – Toyota’s Quality Control Measures
  12. The New York Times – Volkswagen’s Emissions Scandal: A Case Study


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