This is why Toyota subsidiary Daihatsu temporarily suspends global car shipments: Details

On Wednesday, Daihatsu, a subsidiary of Toyota, announced the suspension of shipments for all car models currently being produced, both domestically in Japan and internationally, reported AFP. This decision comes in response to recent disclosures regarding its manipulation of safety tests.

"Daihatsu decided today to temporarily suspend shipments of all Daihatsu-developed models currently in production, both in Japan and overseas," said the auto company in a statement following a report by an independent panel.

Reportedly, established earlier this year to examine a safety scandal initially revealed in April, the committee has identified additional irregularities. The investigation discovered new issues in 174 aspects across 25 test categories, supplementing the previously uncovered misconduct in April and May related to door components and side-collision tests, as stated by Toyota.

The total count of implicated car models has risen to 64, encompassing 22 vehicles associated with Toyota. Given that certification is a crucial requirement for a car manufacturer to engage in business, Toyota acknowledges the severe gravity of Daihatsu's negligence. The situation has significantly impacted the core identity of the company as an automobile manufacturer, shaking its foundational principles, adds the report.

Moreover, the wire report adds that Daihatsu issued a statement expressing profound apologies for "betraying the trust of our customers and stakeholders." Both Toyota and Daihatsu mentioned that, as of now, they have no knowledge of any accidents resulting from the falsification. However, they emphasized the ongoing process of conducting comprehensive technical verification to ensure accuracy.

Earlier this year, Toyota Kirloskar Motor announced plans to invest ₹3,300 crore to set up its third plant at Bidadi in Karnataka. The new unit, which will commence production by 2026, will have an annual capacity of one lakh units in two shifts. It will come up at the company's existing facility at Bidadi, near Bengaluru where it currently has two units with a combined installed production capacity of up to 3.42 lakh units annually.

(With inputs from AFP)