On December 20, Daihatsu Motor Co. Ltd. disclosed its involvement in procedural irregularities related to the certification tests of 64 vehicle models and 3 engines. Consequently, the company has halted shipments and production of all models, including those supplied on an OEM (Original Equipment Manufacturer) basis. The Independent Third-Party Committee, in charge of the investigation that identified new counts of irregularities in addition to the door trim modification in April and the side pole crash test manipulation in May, determined that “The root cause of the problem lies in the management's consistent policy to shorten vehicle development time without implementing measures to address the irregularities.” The extended shutdown is inevitable and is expected to have a significant impact on the supply chain and the local economy.

The incidence of irregularities has surged since 2014, coinciding with the increase in OEM-supplied vehicles to Toyota. In a statement released on the same day, Toyota also mentioned, “Since 2013, Toyota has been increasing the number of OEM-supplied models, primarily compact vehicles, which might have imposed a strain on Daihatsu.” In response, Toyota “pledged to offer full support to Daihatsu's review of its operations.” Quality irregularities have also been exposed within the Toyota Group Companies, including Hino Motors, Ltd. and Toyota Industries Corporation. Essentially, the governance of the parent company, Toyota Motor Corporation, is once again subject to close inquiry.

Besides, it should be noted that data falsification has been identified repeatedly in a habitual way at Daihatsu since 1989, at Hino Motors since around 2003, and at Toyota Industries Corporation since around 2008. Undoubtedly, governance issues at each company and the parent company need to be corrected, but simultaneously, policies related to production planning, production systems, and production management need to be fundamentally reassessed. These issues are definitely associated with “management problems.” But then again, are there any other problems that can be attributed to “individuals”?

I wonder if there is a widespread tendency for people to obey and show deference to organizations and authorities, while justifying their actions through such obsequious attitudes. Over the past 30 years, there has been a passive acceptance of a low-level stability, with a focus on “inward-oriented” perspective everywhere. The majority of “Individuals” have found comfort in settling within this framework. It might serve as a form of self-defense and a diplomatic means of getting along with others, however, sticking to conventional ways will only perpetuate the closed society where people confine themselves to their own circles.

It is not a unique issue exclusive to Daihatsu Motor. The initial step toward reform and revitalization of our society, which each of us is expected to shoulder in our respective positions, involves confronting the sources of injustices and irrationalities that persist in the current stagnant situation. In fact, that is the sole pathway and shortcut to restoring social integrity and fostering growth.

This Week’s Focus, December 29, 2023

Takashi Mizukoshi, the President