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A Japanese automaker has temporarily halted production after admitting to decades of falsified safety test results.
“We are aware of the extreme seriousness of these irregularities, their causes and the recommendations to prevent their recurrence identified during the investigations of the Independent Third Party Committee,” automaker Daihatsu wrote in a statement on the company’s website.
“We will not only review and revise the operation of certification applications, but also make deep reforms to our corporate culture by making compliance a top priority to prevent similar events from occurring in the future,” the company said. “We will also undertake a company-wide effort to regain the trust of our stakeholders.”
Daihatsu, a Toyota subsidiary and one of Japan's oldest internal combustion engine manufacturers, founded in 1907, immediately closed its factories and stopped all vehicle imports and exports.
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The closure will affect thousands of auto parts makers and employees, in what the Associated Press called a “blow” to the local economy.
Horie Miho tests the automatic emergency braking system in a Daihatsu minicar at a minicar dealer in Yamato, Kanagawa Prefecture, Japan, August 11, 2018. Picture taken August 11, 2018. (Portal/Kim Kyung-Hoon / Portal Photos)
An independent investigation examined 64 vehicle models and found 174 cases of irregularities in safety testing and other procedures, according to The Hill. Irregularities included manipulating security tests, creating false information, or falsifying test data in what appeared to be widespread and systemic problems within the company.
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Daihatsu halted all shipments while the investigation continued, and Japan's transportation ministry began on-site inspections examining problems at the company dating back to 1989 – around the time Daihatsu made its push into the U.S. market undertook.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | Toyota Motor Corp. | 183.38 | +2.27 | +1.25% |
| FUJHY | SUBARU CORP | 9,068 | +0.05 | +0.53% |
| HMC | HONDA MOTOR CO. LTD. | 30.91 | +0.26 | +0.85% |
| NSANY | NISSAN MOTOR CO. LTD. | 7,834 | +0.05 | +0.69% |
| MZDAF | MAZDA MOTOR CORP. | 10.71 | +0.18 | +1.71% |
The company failed to gain traction in America as it faced overwhelming competition from rivals including Toyota, which owned a major share of around 16.8% in 1967. Toyota expanded this share to 33.4% in 1995 and then gained absolute majority ownership in 1998.
The Daihatsu Motors logo can be seen in its showroom in Tokyo. Daihatsu Motor Co. is facing a major scandal over misconduct in the automobile certification process that affects vehicle safety. (James Matsumoto/SOPA Images/LightRocket via Getty Images / Getty Images)
Daihatsu had a contract to produce small vehicles for Toyota and some of its cars were eventually renamed Toyota models and sold in the United States, even after Daihatsu stopped selling directly to the American market. These models include the Toyota Cayla, Toyota Roomy and Toyota Avanza, among other smaller models.
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Subaru also sold some rebadged Daihatsu vehicles, including the latest generation of the Subaru Stella and the Subaru Chiffon.
Soichiro Okudaira, president of Daihatsu Motor Co., speaks during a press conference at the company's Kyoto plant in Oyamazaki, Kyoto Prefecture, Japan, Friday, Oct. 7, 2022. Daihatsu, a wholly owned subsidiary of Toyota Motor Corp., opened the re … (Akio Kon/Bloomberg via Getty Images / Getty Images)
Daihatsu is the subsidiary of Toyota that specializes in small cars and trucks popular in Japan. In the 2022 financial year, the company assembled around 870,000 vehicles in its four plants.
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The company would not say when production might resume, but media reports suggest production lines will remain closed at least until the end of January, The Associated Press reported.
Toyota North America did not respond to a request for comment from FOX Business at the time of publication.
The Associated Press contributed to this report.