Japanese car maker Daihatsu halts domestic production

Osaka-based Japanese car maker Daihatsu, owned by Toyota, has come to a grinding halt, suspending all domestic production in the wake of a colossal safety testing scandal.

The closure affects approximately 9,000 factory workers across four plants, with uncertainty surrounding the timeline for resumption.

Daihatsu’s spokesperson revealed that production would remain suspended throughout January, emphasizing the challenge in pinpointing a precise restart date.

The repercussions of this decision are expected to reverberate across the nation, potentially impacting over 8,000 companies, as reported by a private research firm.

Last week, the company confessed to manipulating safety tests dating back to at least 1989, impacting a staggering 64 models.

This revelation extends to certain models sold under the Toyota brand, which are also now facing suspension.

In April, Daihatsu admitted to falsifying crash test results for four models, encompassing 88,000 vehicles manufactured in Thailand and Malaysia during 2022 and 2023.

The cascading effect continued in May when the company announced a halt in the production of two hybrid vehicle models in Japan due to similar “irregularities.”

Notably, this includes the Toyota Raize SUV, manufactured on behalf of its parent company.

Founded in 1907 with a focus on internal combustion engines, Daihatsu has had a storied history. It introduced its first three-wheeled vehicle in 1931 before being acquired by Toyota in 1967.

Now, facing a safety testing scandal of immense proportions, the company finds itself at a critical juncture, with widespread implications for the automotive industry and beyond.