In a bold move to address the fallout from a safety test scandal, Japanese automaker Daihatsu, a subsidiary of the Toyota group, is undergoing a leadership reshuffle. Masahiro Inoue, an experienced executive from Toyota, is set to replace Daihatsu’s president as part of Toyota’s commitment to lead the reforms at its wholly-owned subsidiary. The scandal, brought to light by a whistleblower, revealed long-standing violations, prompting Toyota to make significant appointments, including a new president, executive vice president, and director.
Masahiro Inoue, currently overseeing Toyota’s business in South America, will assume the role of Daihatsu President in March, succeeding Soichiro Okudaira. Alongside the president, executive vice president Masanori Kuwata and director Keiko Yanagi are part of the strategic reshuffling. The changes underscore Toyota’s determination to play a pivotal role in preventing future scandals and reforming Daihatsu.
Inoue expressed his commitment to rebuilding trust with Daihatsu’s stakeholders and apologized for the company’s actions. He emphasized a collective effort to achieve a fresh start. Toyota CEO Koji Sato highlighted that a comprehensive business plan, outlining a new managerial direction, will be unveiled in April, demonstrating Toyota’s proactive approach to address the crisis.
The Japanese government has ordered a halt in the production of certain Daihatsu models until proper tests are conducted and approved. Although some production has resumed, addressing issues with other models will take time. While no major accidents have been reported, the scandal has raised serious concerns about oversight at Daihatsu and its parent company, Toyota.
Daihatsu, with its century-old history and a workforce of 40,000, is renowned for small models popular in Japan and Asia. Acknowledging the wrongdoing, Daihatsu has initiated an investigation entrusted to the Japanese government. The company attributes the cheating to complex causes, including pressure on workers to meet tight deadlines and management neglect on the factory floor.
Sato outlined the commitment to rectify Daihatsu’s corporate culture and manufacturing practices, aligning with the principles of the Toyota Way. He emphasized a return to the company’s roots to recreate Daihatsu and restore its reputation in the automotive industry.
