Controversy-ridden Toyota Group automaker Daihatsu replaces management – Winnipeg Free Press

TOKYO (AP) – Japanese automaker Daihatsu on Tuesday named a veteran of its parent company Toyota as its president as it seeks to repair damage from a scandal involving fraud in vehicle safety tests.

The scandal at Daihatsu Motor Co. came to light after a whistleblower reported the fraud. A third-party review found decades-old violations, such as testing only one side of the vehicle when both sides should have been tested.

The appointment of a new president, executive vice president and director shows Toyota's commitment to taking a leading role in reforms at its wholly-owned subsidiary.

Masahiro Inoue, who heads Toyota's South American business, will become president of Daihatsu in March, Toyota CEO Koji Sato told reporters in Tokyo.

Inoue replaces Soichiro Okudaira, who is stepping down. Okudaira was also sent by Toyota. Daihatsu Chairman Sunao Matsubayashi also resigned, while two other directors left the board but retained their positions at the company.

Masanori Kuwata, now Lexus International Co., Toyota Motor Corp. luxury brand, has become executive vice president of Daihatsu, according to changes announced Tuesday. Toyota Deputy CEO Keiko Yanagi has been appointed as Daihatsu CEO.

Inoue apologized to Daihatsu's customers, suppliers and dealers, saying he knows how to be a good listener to earn people's trust because of decades of working overseas.

“We will unite our hearts and strive for a new beginning,” Inoue said.

The appointments show Toyota's determination to take a leading role in reforms and prevent conflicts at its 100% subsidiary.

Inoue said he will unveil a business plan in April, including a new management line.

The Japanese government has ordered a halt to production on a number of Daihatsu models until tests are properly conducted and approved. The companies said some production has resumed, but work on other models will take time.

No major accidents have been reported in connection with the scam, but the news has raised serious questions about the oversight of Daihatsu and its parent company, Toyota.

Daihatsu said its workers were under intense pressure to meet tight deadlines. Management neglected to address problems at the plant, and the reasons for the fraud were complex, Sato said.

Daihatsu recently submitted an investigation into its alleged wrongdoing by the Japanese government. With a 100-year history and 40,000 employees, Daihatsu is known for its compact models that are popular in Japan and the rest of Asia.

Daihatsu products are known in Japan as “kokuminsha” or “people's cars” and are often used by small businesses for delivery and transportation. Sato said it embodies the spirit of Daihatsu.

He said Daihatsu will fix its corporate culture, management and “monozukuri,” or “the act of making something,” a long-standing foundation of Toyota manufacturing that empowers individual workers.

“We are committed to going back to our roots to reinvent Daihatsu,” he said.

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Yuri Kageyama on X: https://twitter.com/yurikageyama