JAKARTA - A compact car manufacturer from Japan, Daihatsu Motor announced the downsizing of their reporting structure to Toyota Motor. This step was taken in line with Toyota as the parent company increasing supervision of their compact car division, following the security test certification forgery scandal.
This change comes more than a month after the new president of Toyota officially led Daihatsu. The new president has a tough task to return the small car division to its growth path.
Through Toyota Global's official statement, April 8, Daihatsu stated that they would remain responsible for the development of actual vehicles, even though they acted as "a mobility company focused on mini vehicles."
This change in business structure includes the dissolution of the Emerging-market Compact Car Company (ECC), which previously served as a bridge between Toyota and Daihatsu.
Daihatsu's development and certification reporting will later be transferred to another segment in Toyota which focuses on compact cars. This change will be made in stages, following the schedule for the change of model.
As reported by Reuters on April 10, Daihatsu President Masahiro Inoue said that Toyota would also be responsible for resource management and optimization of Daihatsu's business planning and products.
Inoue added that Daihatsu wants to take the challenge of launching a battery-powered "kei car", which is smaller and lower-powered than ordinary cars. However, it does not yet provide a launch time frame.
Toyota's domestic sales fell by a third in February, due to production cessation in Daihatsu - which produces several Toyota-branded cars - as well as the reputation of the negligence of security certification in the unit.
The world's largest automotive giant by volume is also facing governance issues separated from its Hino Motors truck manufacturer and affiliate, Toyota Industries.
The scandals in the three companies prompted Toyota chairman Akio Toyoda to issue a rare apology in January.
In terms of volume, Daihatsu contributed 4 percent of Toyota's total group sales, which reached 1.6 million vehicles during the first two months of this year, including luxury brands Lexus and Hino Motors. This figure is down from 7 percent throughout 2023.
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