Toyota announces leadership changes at Daihatsu following safety test scandal
Toyota
In response to the revelation of rigged collision safety-tests, Toyota Motor Corp announced significant leadership changes within Daihatsu Motor, with both the president and chairman set to step down.
These developments come almost a year after Daihatsu disclosed the manipulation of safety tests, marking a pivotal moment for the small-car unit as Toyota endeavours to reinstate the brand's reputation as one of Japan's foremost compact car manufacturers.
The move signals one of the most significant shifts within the company since the scandal emerged. Toyota's efforts to restore Daihatsu's standing align with its broader objectives to address governance issues across its affiliates, including truck maker Hino Motors and Toyota Industries. These challenges have prompted an apology from Toyota Chairman Akio Toyoda, acknowledging the severity of the situation.
Toyota wasted no time in announcing replacements for the outgoing executives at Daihatsu. Masahiro Inoue, currently serving as the chief executive officer for the Latin America and Caribbean region, is slated to assume the role of president effective March 1.
This move reflects Toyota's proactive approach to instilling fresh leadership and direction within Daihatsu. Meanwhile, the chairman position will remain vacant, indicating a streamlined leadership structure moving forward.
While some may interpret these leadership changes as disciplinarymeasures, Toyota's Chief Executive Koji Sato emphasised that the reorganisation within Daihatsu is not solely a response to the misconduct but rather a strategic decision.
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The outgoing president, Soichiro Okudaira, brought nearly four decades of experience at Toyota to his role at Daihatsu, assuming the presidency in 2017 following its full acquisition by Toyota. This tenure underscores the deep ties between the two companies.
Daihatsu's significance within Toyota's broader operations is notable, accounting for 7 per cent of the conglomerate's total group sales in 2023. Despite this, the safety certification lapses necessitated actions to address the issue, including Daihatsu's removal from the Commercial Japan Partnership Technologies (CJPT).
This partnership, initially established by Toyota, Hino, and Isuzu Motors for technology development in commercial vehicles, saw Daihatsu's participation alongside Suzuki Motor. The decision to transfer Daihatsu's 10 per cent equity stake in CJPT to Toyota underscores the gravity of the situation.
(With inputs from Reuters)