Daihatsu Chief Replaced By Toyota Veteran After Testing Scandal

The Japanese automaker Daihatsu replaced its president on Tuesday with a veteran of its parent company Toyota in an effort to mend the damage caused by a scandal involving cheating on vehicle safety tests.

Following the disclosure of the cheating by a whistleblower, Daihatsu Motor Co.'s problems became apparent. A third-party review discovered decades-long infractions, like testing one side of an automobile when both needed to be tested.

The announcement of the appointment of a new director, executive vice president, and president underscores Toyota's commitment to taking the lead in the changes at its fully owned subsidiary.

Toyota CEO Koji Sato informed reporters in Tokyo that Masahiro Inoue, who is currently in charge of the company's operations in South America, will take over as president of Daihatsu in March.
As Toyota aims to bring Daihatsu back to its historical position as one of Japan's most recognizable small carmakers, these departures represent some of the most significant adjustments the company has made to date.

The top-selling carmaker in the world stated that the safety certification violations at Daihatsu, along with independent governance problems at truck manufacturer Hino Motors and affiliate Toyota Industries, could potentially harm the company's reputation.

Last month, Toyota Chairperson Akio Toyoda issued an apology in response to the scandals at the three companies.

Production of a number of Daihatsu models has been ordered to stop by the Japanese government until appropriate and authorized testing can be conducted. The companies stated that while work on some models has already resumed, it will take time to complete them.
Investigations have shown that there were inconsistencies in the information provided during the safety certification process, leading to the loss of the vehicle type approval (VTA) certification for several Daihatsu models and the start of several recalls

Although there haven't been any significant mishaps linked to the cheating, the revelation has brought serious concerns about Daihatsu's and Toyota's corporate oversight to light.