Daihatsu Motor Co. Halts Production After Safety Test Falsification Scandal
In response to the recent revelation of falsified vehicle safety tests, Daihatsu Motor Co. has temporarily ceased production at its headquarters in Ikeda, Osaka Prefecture. This plant was the last remaining factory still in operation for the automaker. The stoppage has resulted in a complete halt of automobile production at all four of Daihatsu’s manufacturing plants in Japan.
It is anticipated that Daihatsu will be unable to resume automobile manufacturing until at least the end of January. The plant at the company’s headquarters specifically produces the Copen model, a popular convertible sports minicar. Employees have continued to commute to the plant in order to conduct necessary equipment checks and clean the factory during the production suspension.
Additionally, some employees at the plant have taken leave. Daihatsu has put forth a plan for wage compensation during the stoppage, with amounts expected to be on par with those paid while operations were suspended at plants during the COVID-19 pandemic. The halt in production comes after Daihatsu suspended operations at its plants in Oyamazaki in Kyoto Prefecture, Ryuo in Shiga Prefecture, and Nakatsu in Oita Prefecture.
A total of 27 models are manufactured at the four plants, with approximately 930,000 units produced in fiscal year 2022. With production at a standstill until at least the end of January, it is projected that the company may only manufacture around 70,000 vehicles, significantly impacting its output.
Furthermore, concerns have arisen about the potential impact on parts makers. Daihatsu directly procures components from 423 suppliers, leading to worries that the stoppage may have a negative effect on their earnings and ability to retain workers. Anxiety is mounting among the suppliers as they face the uncertainty associated with the production halt at Daihatsu’s plants.
The suspension of production is a significant development for Daihatsu and its employees. The entire company has been affected by the scandal of falsified safety tests, leading to a pause in manufacturing activities and potential repercussions for the wider automotive industry in Japan. The extent of the impact remains to be seen as the situation continues to unfold.
