“Extreme time pressure” has apparently triggered a huge fraud scandal in the Japanese automotive industry. The affected Toyota subsidiary will halt all production until at least the end of January.
Back in April, the Japanese car manufacturer Daihatsu admitted that it had manipulated test results from individual models. Shortly afterwards, an expert investigation into the incidents was launched.
The result now hits the manufacturer hard: In a statement it says that irregularities were found in 64 models and 3 engines. The vehicles included Daihatsu-branded cars as well as those supplied to Toyota, Mazda and Subaru.
The company added in a very Japanese way: “We deeply apologize to our customers and other parties involved for causing great inconvenience and worry and for abusing your trust.” There is also a huge notice on the company’s homepage.
Manipulations go back to 1989
However, only by looking at the investigation report does it become clear how serious and ongoing the fraud at Daihatsu really was. The changed test results included covered-up problems with airbags, changes in the results of accident tests and embellished consumption values.
It is said that the number of manipulations has increased since 2014. However, the oldest interventions can be dated back to 1989. In other words, Daihatsu fraud has existed for over 30 years.
According to the report, there were “no cases” within the company in which higher management instructed those responsible for the test to change the results. Accordingly, only department heads were involved in the fraud. The report cites “extreme time pressure” to which those responsible were exposed as the motive.
Production stopped, compensation announced
First, Daihatsu stopped delivering finished vehicles. After the Christmas holidays, there will now be further consequences. A complete production stop was imposed in all four Japanese plants until at least the end of January, with around 9,000 employees and 423 suppliers directly affected. Daihatsu reiterated that it will compensate suppliers who suffer losses due to the production lines being stopped.
Solutions are now being sought for the enormous costs incurred by the comparatively small manufacturer. According to the Reuters news agency, both bank loans and comprehensive support from the parent company Toyota are being discussed.
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Source: Stern
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
