In a sweeping move to amend its wayward path, Daihatsu Motor Co., a subsidiary of the Toyota Group, is undergoing a leadership transformation in the wake of a vehicle safety testing scandal. This shake-up was unveiled Tuesday, with the company electing to bring in seasoned Toyota executives to steer the company towards a more ethical future. According to ABC News, the changes come after a whistleblower exposed long-standing malpractices in safety procedures.
Masahiro Inoue, who has been adeptly managing Toyota's South American ventures, is set to take the helm at Daihatsu starting in March. In a move that aims to reassure skittish investors and customers alike, Inoue will step into the role vacated by Soichiro Okudaira, who resigned amidst the turmoil. As reported by The Seattle Times, Daihatsu's chairman, Sunao Matsubayashi, has also departed his post, and two other executives have left the board, although they maintain roles within the company.
The scandal initially broke when a Daihatsu insider blew the whistle on the company's unethical practices, which included inconsistent safety tests. A third-party inquiry revealed that Daihatsu had been conducting tests on just one side of a vehicle when regulations required both to be examined, a violation that has apparently persisted for decades. This lapse uncovered by the thorough review demonstrates a serious breach in compliance, bringing Daihatsu's credibility into question.
It is Toyota's clear intent to ensure such breaches are staunchly remedied. Inoue has already pledged to cement better relations with Daihatsu's clientele and partners, expressing that he knows "how to be a good listener to win people's trust" through his extensive international experience, as KESQ reports. He vowed, "We will make our hearts one and aim for a new start." A strategic business plan outlining Daihatsu's new direction is expected to be shared in April.
While Daihatsu struggles to navigate the fallout, the Japanese government has halted production of several models pending proper testing. According to official statements, production for some models has resumed, but others will remain offline as Daihatsu and Toyota work to fully comply with safety regulations and recover consumer trust.
