Hong Kong, China – Daihatsu, the Japanese automaker owned by Toyota, has suspended domestic production after confessing to manipulating safety test results for its vehicles for over 30 years. The company, known for producing small passenger cars, has halted output at all of its four Japanese factories, including its headquarters in Osaka. Approximately 9,000 employees who work in domestic production will be impacted by the shutdown, which is expected to last through at least the end of January.

The decision to suspend production follows the uncovering of evidence by an independent third-party committee, revealing that safety tests on as many as 64 vehicle models were tampered with. This includes vehicles sold under the Toyota brand. As a result, Daihatsu has announced the temporary suspension of all domestic and international vehicle shipments and will be consulting with authorities on how to proceed.

This scandal is not the first for the automaker, as it previously admitted to violating standards on crash tests, mostly affecting cars sold under the Toyota brand in countries such as Malaysia and Thailand. The company also revealed that it had submitted incorrect data for collision tests on two hybrid electric vehicles, leading to a halt in shipping and selling those models.

The latest report released by the investigative committee showed 174 more cases of Daihatsu manipulating data, making false statements, or improperly tinkering with vehicles to pass safety certification tests. The oldest case dates back to 1989, with an increase noted in the number of cases since 2014.

In response to the scandal, Toyota has pledged to overhaul its subsidiary, stating that “fundamental reform is needed to revitalize Daihatsu.” The company recognizes the severity of the situation and plans to conduct a comprehensive review of management and operations. Toyota shares dropped 4% in Tokyo following the news, but have since recovered slightly.

In conclusion, the suspension of Daihatsu’s domestic production serves as a significant blow to both the company’s reputation and the larger automotive industry. The impact of the scandal has led to a reevaluation of safety standards and testing procedures, highlighting the need for stricter compliance and oversight to ensure the safety of vehicles on the road.