Carmaker Daihatsu shuts production over safety tests scandal

Toyota-owned carmaker Daihatsu has closed all four of its plants until the end of January, after admitting it had falsified safety tests, a media report said.

Daihatsu admitted that it had been manipulating safety tests on 64 makes for three decades, BBC reported.

Its headquarters in Osaka, Japan, was the last to close on December 25, the report said. The scandal puts in jeopardy 9,000 workers in the country and could affect global car giant Toyota’s reputation.

Of the 64 models involved in the scandal, 24 are sold with Toyota branding. The closure of its Osaka plant follows closures in its production lines in Oita, Shiga and Kyoto prefectures.

Daihatsu said that it had stopped shipments of all its vehicles after its latest admission, which followed a transport ministry investigation, BBC reported.

It seems test results were falsified because of pressure to keep production rolling.

The company said it would work with its main suppliers to address the fallout from the scandal, adding that it may also help its smaller subcontractors that do not receive compensation to access support funds from Japan’s transport ministry.

It also said that during the time plants are idle it would compensate 423 domestic suppliers with which it has direct business relations.

Established 1907, Daihatsu sells around 1.1 million cars per year, which make up around 10% of Toyota’s 10 million vehicle sales per year, BBC reported.