Daihatsu's Massive Document Falsification Scandal Rocks Japanese Auto Industry, Leading to Plant Shutdowns and Potential Restructuring of the Kei Car Market

Daihatsu, once a leading Japanese automaker, has been rocked by a shocking large-scale document falsification scandal.

The incident came to light on April 28, when an employee of a Daihatsu subcontractor revealed that data related to vehicle sales in overseas markets, including those related to 'Abenomics' and 'export promotion', had been manipulated. Initially suspected as an individual employee's act of dissent, Daihatsu's internal investigation revealed that it was an organized crime involving the entire company, causing shockwaves.

Image Source: GPT4.0

According to the investigation results released by Daihatsu in August, they had falsified records of the strength and durability of auto parts for over 20 years, with 174 cases of document falsification across 29 vehicle models confirmed. This has impacted not only the Japanese market but also vehicles exported overseas. This large-scale falsification is feared to inflict serious damage on the entire Japanese automotive industry and the Japanese economy, going beyond simple organizational corruption.

Daihatsu's parent company, Toyota Motor Corporation, reportedly found it difficult to comprehend the shock. This incident occurred just as they were trying to overcome the disgrace of the past sudden acceleration incidents. Toyota immediately convened a countermeasure meeting and took strong action against Daihatsu, demanding compensation for damages. Toyota, which has already announced losses exceeding 1 trillion yen, has demanded Daihatsu pay full compensation and bear all expenses.

Furthermore, the news that Daihatsu has decided to halt operations at all of its automobile factories nationwide has heightened the shock. This incident has reportedly pushed Daihatsu to the brink of bankruptcy. However, the issue is not merely the potential bankruptcy of this company. Given that Daihatsu is the leading company in the Japanese kei car market, a market restructuring is inevitable in the future.

In reality, the number of companies that deal with Daihatsu, including indirect subcontractors and transportation companies, is estimated to be around 8,000. Concerns are rising that if the shutdown of Daihatsu's factories is prolonged, small and medium-sized enterprises will suffer significant setbacks. Moreover, as Daihatsu distributes vehicles through approximately 30,000 dealerships across Japan, consumers seeking to purchase new vehicles may also face inconvenience due to this incident.

Considering this situation, the Japanese government and industry have reached a point where they can no longer ignore Daihatsu. Calls are growing for accountability from Daihatsu and the establishment of a plan for restructuring the kei car market as soon as possible. A Japanese government official emphasized, "This incident is a serious issue that could affect the entire kei car industry, not just a single company," and stressed the need to develop swift countermeasures.