Toyota (NYSE:TM) revealed Wednesday that the automaker’s small-car Daihatsu unit will halt shipments of all of its vehicles following a safety investigation that found issues involving 64 models, including almost two dozen sold under Toyota's brand.
Toyota stated that the impacted models included those intended for the Southeast Asian markets such as Thailand, Indonesia, Malaysia, Cambodia, and Vietnam. Additionally, the affected models extended to Central and South American countries including Mexico, Ecuador, Peru, Chile, Bolivia, and Uruguay.
A team of impartial investigators has been examining Daihatsu following its admission in April regarding the manipulation of side-collision safety tests conducted on 88,000 small cars, many of which were marketed as Toyotas.
The investigation found that Daihatsu used different airbag control units in tests than in the cars sold to the public, affecting Toyota and Mazda models. Toyota mentioned no known accidents due to this issue. They acknowledged that some tests might not meet legal standards, though the airbag met safety requirements.
The panel also found falsified reports on headrest impact tests and test speeds for certain models. The investigation revealed that this misconduct was especially widespread after 2014. In the case of one Daihatsu vehicle that had already been discontinued, such behavior was traced back as early as 1989.
The chair of the independent investigation committee mentioned that the panel did not attribute responsibility to Toyota for the misconduct. Instead, Daihatsu seemed to be striving to meet its self-imposed expectations.
Japan's transport ministry said that they plan to do an on-site inspection at Daihatsu's Osaka headquarters on Thursday.
Daihatsu produces several of the so-called "kei" smaller cars and trucks, popular in Japan. The recent problems also affected certain Mazda and Subaru models available in the region, along with Toyota and Daihatsu models sold internationally, as highlighted by the investigative panel's discoveries.
Toyota said "fundamental reform" was needed to revitalize Daihatsu, as well as a review of certification operations.
In response, Toyota emphasized the necessity for "fundamental reform" to restore Daihatsu, coupled with a comprehensive reassessment of certification procedures.
"This will be an extremely significant task that cannot be accomplished overnight," Toyota said in a statement. "It will require not only a review of management and business operations but also a review of the organisation and structure."
Shares of TM are down 0.90% in early trading on Wednesday.