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Daihatsu Manipulation Scandal, This Is the Impact on the Factory, Management and Potential Recall

Daihatsu has finally officially announced the results of the investigation into the crash test manipulation scandal for several of its cars. The announcement of the results of the investigation was made by Daihatsu together with Toyota, which is the majority shareholder of Daihatsu.

The results of the investigation stated that there were 174 irregularities made by Daihatsu when producing cars. This deviation actually had an impact on 64 car models made by Daihatsu and also three engines that had been produced. Cars were affected not only in Japan but also those produced abroad.

As a result, this condition made Daihatsu decide to stop sending the affected cars.

“From these results we will announce that all cars being produced in Japan and foreign countries will temporarily stop being shipped. We apologize for this inconvenience to customers and stake holders,” said Soichiro Okudaira, President of Daihatsu Motor Co, Wednesday (20/ 12/2023) this ensures.

Interestingly, the results of this investigation and decision will automatically have a big impact on Daihatsu both in terms of production activities, replacement of Daihatsu’s top management, and the potential for a recall or recall of affected cars that are already circulating in the community.

The issue of replacing Daihatsu’s top management emerged because reports and results of investigations carried out stated that irregularities occurred due to negligence by top management. Moreover, the fact is that the report shows that irregularities have been going on for decades.

Soichiro Okudaira understands these demands. He confirmed that there was indeed some form of accountability from Daihatsu’s top management for this negligence.

“If you ask about the position of management because of this case, at this time I hope you understand, we will try to restore the sense of trust that exists in society. After that, we will think about what we will do with the top management,” said Soichiro Okudaira .

This was also agreed by Toyota’s representative, Hiroki Nakajima, Vice President of Toyota Motor Corporation. He said Toyota would make every effort to support Daihatsu to overcome this negligence and most importantly restore the public’s sense of trust in Daihatsu.

“Management improvements cannot be made overnight. As I mentioned, Toyota is ready to support Daihatsu to improve the situation,” he said.

Apart from the problem of replacing top management, Daihatsu also confirmed that Daihatsu car production would be temporarily stopped. Reactivation will only be carried out after efforts to correct the investigation report can be carried out.

According to Hiromasha Hoshika, Executive Vice President of Daihatsu Motor Co, this condition will have an impact on Daihatsu suppliers, business partners and customers. Those who have ordered Daihatsu cars, especially those affected by irregularities, will temporarily not be able to receive the cars.

“Currently we have 143 suppliers in Japan. 47 of them are very dependent on Daihatsu. Including their income. The impact is indeed very large. Regarding compensation, we will take care of it on a case by case basis to ensure that we pay attention too,” he stressed.

Meanwhile, regarding Daihatsu and Toyota cars that have been circulating on the road and experienced procedural irregularities, Daihatsu has not yet decided to carry out a recall. A new recall procedure will be carried out if further investigations require it to be carried out.

“Currently we have not heard of any problems or accidents due to this incident. Personally, I see that the car can be driven while still prioritizing caution and safety,” said Soichiro Okudaira.

It is known that some of the Daihatsu and Toyota cars affected by this irregularity case are partly products that are also produced in Indonesia, especially for the export market. These cars are Daihatsu Agya (Ecuador, Uruguay, Cambodia), Toyota Rush (Ecuador, Malaysia), Toyota Avanza (Indonesia, Mexico, Cambodia, Thailand, Vietnam, Peru, Bolivia). The cars are produced at pT Astra Daihatsu Motor (ADM).

Apart from that, there are cars produced at PT Toyota Motor Manufacturing Indonesia (TMMIN), namely the Toyota Avanza (Indonesia, Mexico, Cambodia, Thailand, Vietnam, Peru, Bolivia). Toyota Veloz (Indonesia, Malaysia, Cambodia, Mexico, Thailand). Toyota Yaris Cross (Cambodia, Chile, Uruguay).

 

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