Major car brand shuts down FOUR factories and stops shipments over safety fears involving 64 models
A MAJOR car manufacturer has closed ALL four of its factories after admitting it had falsified safety tests for three decades.
Daihatsu, a Toyota-owned company, shut down its production lines a week after suspending shipments on all of its 64 models in and outside of Japan.
Last week, safety tests irregularities in over 64 models - 24 of which are sold with Toyota branding - first triggered an independent examination.
Transport ministers soon after launched a deeper probe, which led to a complete halt in manufacturing and the closure of its plants until the end of January.
Daihatsu's headquarters in Japan's capital of Osaka was the last to close on December 25 following shutdowns in Oita, Shiga and Kyoto.
The safety results were said to be falsified over three decades because of pressure to keep production rolling, BBC reports.
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The safety scandal puts 9,000 Japanese jobs in jeopardy and risks affecting global car giant Toyota's reputation.
Thousands of auto parts manufacturers and their workers are anticipated to be impacted by the closures, which could hit local economies hard.
Along with pledging to reimburse 423 domestic suppliers in the fallout of the scandal, Daihatsu is now focusing on dealing with its extensive supplier network.
Daihatsu sells roughly 1.1million cars per year, which makes up 10 per cent of Toyota's 10million vehicle sales per year.
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The safety issues also affected some Mazda and Subaru models sold in Japan and Toyota and Daihatsu models sold abroad.
Daihatsu first reported faulty testing on door linings in April, which followed with an independent commission by Toyota that uncovered more issues including air bags and speed tests.
"There's no suggestion at the moment that the actual products were unsafe, but what seems to have happened is that they tested a car with components in and then sold a car with different components in, so that's become a major issue," motor industry analyst David Bailey told the BBC.
Daihatsu's internal inquiry discovered 174 more instances of irregularities in safety testing and other procedures across 25 test categories.
They also found data falsification and unauthorised testing procedures.
Daihatsu president Soichiro Okudaira said last week that he acknowledged the cheating on safety testing and procedures, saying it was equal to neglect of safety certificates.
He blamed the issues on the strain placed on employees to fulfil ambitious demands for tight development timelines.
In 2009, Toyota was forced to recall some models over faults with floor mats and accelerator pedals.
In a further blow to its reputation, the car giant recalled more than seven million vehicles worldwide over faulty window switches.
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