Daihatsu Motor Co. has reported an operating loss for the first time in 31 years, since the March quarter of 1993, following the collapse of the bubble economy. According to its consolidated financial results for the fiscal year ending March 2024, the company recorded an operating loss of 50 billion yen (compared to a profit of 380 billion yen in the previous year). The company's performance was severely impacted by the long-term suspension of shipments due to certification irregularities and the payment of compensation to collaborating companies.

The company's financial statement revealed that its revenue reached 1.181 trillion yen (down 20.9% year-on-year). The certification irregularities led to the suspension of shipments of all vehicle models starting from December 2023, resulting in a significant decline in revenue. Accumulated compensation payments to collaborating companies resulted in a special loss of 700 billion yen. Despite overcoming difficulties in the aftermath of the 2008 Lehman shock through rigorous cost reductions, the cost of this certification scandal has been substantial. However, the company recorded 640 billion yen in non-operating income, attributed to tax refunds and adjustments, resulting in a net profit of 150 billion yen (down 80.5% year-on-year). The details of the non-operating income have not been disclosed.

A review of the company's financial health indicates that its current assets have decreased by 131 billion yen to 507 billion yen compared to the previous year. However, its current liabilities also decreased by 140 billion yen to 389 billion yen. Total liabilities decreased by 141 billion yen to 415 billion yen, while net assets increased by 16 billion yen to 403 billion yen. Despite the decline in revenue, the company has managed to maintain a sound financial position without relying on funds from Toyota Motor Corporation or loans from financial institutions. However, orders within Japan have remained at around 70% of their previous levels since the resumption of shipments. If the decline in orders persists due to delays in the introduction of new vehicles, concerns arise regarding not only the company's performance but also its financial health.

Daihatsu's certification irregularities have had a significant impact on the entire Toyota Motor Corporation group. Toyota Motor Corporation reported record-high net profit of 4.9449 trillion yen (up 101.7% year-on-year) for the fiscal year ending March 2024. However, the certification irregularities involving Daihatsu and Toyota Auto Body have prompted Toyota Motor Corporation to review its production and development systems.

Toyota Motor Corporation plans to invest a total of 1.7 trillion yen to cover labor costs for collaborating companies and dealerships and to accelerate its development of electric vehicles.

Daihatsu, despite facing severe setbacks due to the certification scandal, is striving for a comeback with the support of Toyota Motor Corporation. Whether Daihatsu can overcome the certification irregularities and achieve future growth remains to be seen.