Japanese Automaker Faces Challenges After Safety Test Cheating Scandal

TOKYO (AP) — A Japanese automaker that engaged in fraudulent safety tests for several decades revealed on Monday that it does not anticipate resuming car shipments in the near future.

The Japanese government has ordered a subsidiary of Toyota to completely halt production of all its vehicles following the revelation of fabricated safety test results last year.

According to a review, Daihatsu Motor Co. evaded mandatory safety tests by duplicating data from testing on one side of the cars and used timers to ensure airbags were activated during the tests.

While there have been no serious accidents reported as a result of this cheating scandal, it has raised significant concerns about oversight at Daihatsu, as well as its parent company, Toyota 7203, +0.68% TM, +0.29%.

Japanese regulators recently granted approval for five of the company’s models after conducting additional tests. However, company officials have confirmed that factories will remain closed until it receives supplies from its suppliers.

Corporate manager Keita Ide expressed the difficulty the company faces in rebuilding customer trust regarding safety and security. He acknowledged that customers feel betrayed and emphasized that the company is actively devising a plan to prevent future cheating incidents.

Daihatsu is renowned for its kei cars, also known as light automobiles, including the popular Daihatsu Tanto “kei,” or small, car. Additionally, it manufactures the Toyota Raize hybrid sport-utility vehicle, which is also sold under the Daihatsu Rocky brand.

An extensive investigation involving third-party experts discovered 174 cases of falsified tests that affected numerous models, including vehicles sold under the Toyota Motor Corp. brand. The review unveiled a history of cheating spanning three decades.

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