Tuesday, May 28, 2024

Daihatsu Shuts Down All Car Manufacturing Factories in Japan

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Daihatsu, a unit of Japanese automaker Toyota Motor Corp., has shut down production lines at all its four factories in Japan amid a safety probe by Japanese transport ministry officials. The shutdown occurred after Daihatsu Motor Co. announced it was suspending all vehicle shipments in and outside Japan following the discovery of improper safety tests.

Key Points

  • Daihatsu specializes in small cars and trucks, producing around 870,000 vehicles at the four plants in fiscal 2022.
  • The company’s factories have supply chains including 8,136 companies across Japan, with sales totaling 2.2 trillion yen ($15.53 billion).
  • The shutdown affects 64 models and three vehicle engines, including 22 models and an engine sold by Toyota.
  • The problems also affected some models of Mazda Motor Corp. and Subaru Corp.

The problems were found in 64 models and three vehicle engines, including 22 models and an engine sold by Toyota. The shutdown began on Monday and stopped production at all four plants in Shiga, Kyoto, and Oita prefectures, as well as at its headquarters in Osaka. Daihatsu has declined to say when production will resume, while media reports suggest the lines will be suspended at least through January.This incident raises concerns about the impact on company earnings, employment, and the local economy. The longer the shipment suspension, the greater the concern about its impact on these factors. The shutdown is a result of Daihatsu’s commitment to addressing the safety issues and ensuring the quality of its vehicles.

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