Toyota halts all deliveries of Daihatsu vehicles By Investing.com


© Reuters. Toyota (TM) is stopping all deliveries of Daihatsu brand vehicles

Toyota (NYSE: ) announced Wednesday that Daihatsu’s small car unit will halt deliveries of all its vehicles following a safety investigation that uncovered problems affecting 64 models, including nearly two dozen sold under the Toyota brand.

Toyota said the affected models included those destined for Southeast Asian markets such as Thailand, Indonesia, Malaysia, Cambodia and Vietnam. In addition, the affected models have spread to Central and South American countries including Mexico, Ecuador, Peru, Chile, Bolivia and Uruguay.

A team of impartial investigators probed Daihatsu following its admission in April of tampering with side-impact safety tests carried out on 88,000 small cars, many of which were marketed as Toyotas.

The investigation found that Daihatsu used different airbag control units in tests than those used in cars sold to the public, affecting Toyota and Mazda models. Toyota has not reported any known accidents due to this problem. They acknowledged that some tests may not have met legal standards, although the airbag met safety requirements.

The panel also found false reports of headrest crash tests and test speeds for certain models. The investigation revealed that this misconduct was especially widespread after 2014. In the case of one Daihatsu vehicle whose production has already been discontinued, such behavior was traced back to 1989.

The chairman of the independent investigation committee mentioned that the panel did not hold Toyota responsible for wrongdoing. Instead, Daihatsu seemed to be trying to live up to its own expectations.

Japan’s transport ministry said it plans to conduct an on-site inspection at Daihatsu’s headquarters in Osaka on Thursday.

Daihatsu makes several so-called “kei” smaller cars and trucks, popular in Japan. The recent problems also affected some Mazda and Subaru models available in the region, along with Toyota and Daihatsu models sold internationally, the panel’s findings highlighted.

Toyota said “fundamental reform” was needed to revive Daihatsu, as well as an overhaul of certification operations.

In response, Toyota emphasized the need for “fundamental reform” to renew Daihatsu, coupled with a comprehensive review of certification procedures.

“This will be an extremely significant task that cannot be accomplished overnight,” Toyota said in a statement. “It will require not only a review of management and business operations, but also a review of organization and structure.”

Shares of TM traded down 0.90% in early trading on Wednesday.