Manipulated tests - Decades of fraud: Japanese car manufacturer halts entire production
Back in April, the Japanese car manufacturer Daihatsu admitted that it had manipulated test results for individual models. Shortly afterwards, experts launched an investigation into the incidents.
The results are now hitting the manufacturer hard: In a statement, it says irregularities were found in 64 models and 3 engines. The vehicles included Daihatsu brand cars as well as those supplied to Toyota, Mazda and Subaru.
In true Japanese fashion, the company added: "We deeply apologize to our customers and other stakeholders for causing great inconvenience and concern and for betraying your trust." A huge notice is also emblazoned on the company's homepage.
Manipulations go back to the year 1989
However, it is only when you look at the investigation report that it becomes clear just how serious and persistent the fraud at Daihatsu really was. According to the report, the altered test results included covered-up problems with airbags, changes to the results of accident tests and falsified fuel consumption figures.
The number of manipulations has increased since 2014, according to the report. However, the oldest manipulations can be dated back to 1989. In other words, fraud at Daihatsu has been going on for over 30 years.
According to the report, there were "no cases" in the company in which senior management had instructed those responsible for testing to alter the results. According to the report, only department heads were involved in the fraud. The report cites "extreme time pressure" to which those responsible were subjected as the motive.
Production stopped, compensation announced
Initially, Daihatsu stopped the delivery of finished vehicles. After the Christmas holidays, there are now further consequences. A complete production stop has been imposed at all four Japanese plants until at least the end of January, with around 9,000 employees and 423 suppliers directly affected. Daihatsu has confirmed that it will compensate suppliers who suffer losses as a result of the production stoppage.
Solutions are now being sought for the enormous costs incurred by the comparatively small manufacturer. According to the news agency "Reuters", both bank loans and comprehensive support from the parent company Toyota are being discussed.
Sources: Daihatsu, investigation report, Reuters, Daihatsu homepage
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The manipulations at Daihatsu affected not just their own models, but also vehicles supplied to Toyota, Mazda, and Subaru, which used Daihatsu's 3 engines in their production. The investigation report revealed that the fraudulent activities spanned over three decades, with manipulations dating back to 1989. The report also highlighted that senior management did not instruct anyone to alter the results, but department heads under extreme time pressure were responsible. Despite stopping the delivery of finished vehicles and announcing compensation for affected suppliers, Daihatsu is now facing significant financial challenges, with bank loans and support from parent company Toyota being considered as possible solutions.
Source: www.stern.de
