A crash scandal rocked Daihatsu, a subsidiary of Toyota, resulting in the closure of all factories in Japan.
This action follows the suspension of vehicle deliveries after improper testing was discovered on 64 models.
Quoted from Sky News, the following are the facts regarding the closure of the Daihatsu factory.
Daihatsu safety. The move follows a halt in vehicle deliveries after improper testing was discovered on 64 models.
2. In-depth Investigation from the Ministry of Transport
The Japanese Ministry of Transport has launched an in-depth investigation regarding Daihatsu vehicles. This investigation culminated in the closure of the plant as a response to systematic errors discovered in safety testing.
3. Impact on Thousands of Suppliers and the Local Economy
Factory closures in Shiga, Kyoto, Oita, and the Osaka headquarters are expected to impact thousands of suppliers and employees, threatening the local economy.
Daihatsu promised to provide compensation to 423 domestic suppliers with which it has direct business relationships.
4. Safety Testing Issues and Other Violations
The scandal involved 64 models and three engines of vehicles, including 22 models and one engine sold by Toyota. The impact also spread to several Mazda and Subaru models in Japan, as well as Toyota and Daihatsu models sold overseas.
5. Root of the Problem: Pressure on Workers and Tight Development Deadlines
Daihatsu President, Soichiro Okudaira, admitted to cheating in safety testing and other procedures. He blamed the pressure on workers to meet tight development deadlines as the main cause of the problem.
With factory closures and widespread impacts on supply chains, this scandal shows the need for change so that more consumers are not harmed.
