Toyota Taking Over Daihatsu’s Overseas Compact Car Development

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Toyota Motor Corp. will take over Daihatsu Motor Co.’s compact-vehicle development and certification outside Japan, as the world’s largest carmaker seeks to revive its truck-making subsidiary following a safety certification scandal.

Daihatsu’s business unit for compact cars in emerging countries will be folded into Toyota’s unit, the carmakers said in a statement Monday. “With this change in structure, the two companies will aim for a more independent and coordinated organization in Asia,” they said.

Daihatsu, which has been a wholly-owned subsidiary of Toyota since 2016, was forced to halt all vehicle shipments after an internal probe found decades of irregularities in its safety certification results. Toyota has faced a series of scandals since late last year, including disclosure by Toyota Industries Ltd. in January that it altered power output data for several engines it was supplying to Japanese carmakers.

In March, Toyota appointed Masahiro Inoue, formerly the head of its operations in Latin America, to restore leadership at Daihatsu.

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