Daihatsu, the Japanese automaker owned by Toyota, has halted domestic production after admitting to falsifying the results of safety tests for its vehicles for more than 30 years.
The brand, best known for making small passenger cars, has halted production at all four of its Japanese factories as of Tuesday, including its headquarters in Osaka, a spokeswoman told CNN.
The shutdown will last at least until the end of January, affecting about 9,000 employees working in domestic manufacturing, the representative said.
The move comes as Daihatsu grapples with Toyota's deep security scandal He says “It shook the foundation of the company.”
Last week, Daihatsu declared An independent third-party panel found evidence of irregularities in safety tests on 64 vehicle models, including vehicles sold under the Toyota brand.
As a result, Daihatsu said it will temporarily suspend all domestic and international vehicle exports and consult with authorities on how to proceed.
The scandal is yet another blow to the automaker, which it acknowledged In April More than 88,000 cars sold mostly under the Toyota brand in countries such as Malaysia and Thailand have been found to have failed crash tests.
In that case, “the inner lining of the front seat door was improperly replaced” for some checks, while Daihatsu did not comply with regulatory requirements for some side crash tests, it said in a statement at the time.
In May, the automaker said It found more errors, revealing the submission of incorrect data for crash tests on two hybrid electric vehicles. The company said it stopped shipping and selling those models at that time.
A recent study further threatens the company's reputation. A step Report Published by the investigative committee last Wednesday, there were 174 other cases involving Daihatsu manipulating data, making false statements or improperly tinkering with vehicles to pass safety certification tests.
The oldest case was discovered in 1989, and there has been a significant increase in the number of cases since 2014, the report said.
Toyota shares fell 4% in Tokyo on Thursday following the news. The stock has managed some losses since then.
In response, the Japanese behemoth has promised to shake up its subsidiary Report It said last week that “fundamental reform is needed to revitalize Daihatsu.”
“This is a very important task that cannot be accomplished overnight,” Toyota said, adding that it will require a comprehensive review of management, operations and how the unit is structured.
“We recognize the serious gravity of the fact that Daihatsu's disregard for the certification process has shaken the company's very foundation as an automobile manufacturer,” Toyota added.