Rectification Order Issued by MLIT

Jan. 16, 2024
Daihatsu Motor Co., Ltd.

Daihatsu Motor Co., Ltd. (Daihatsu) received the investigation report regarding recent procedural irregularities in certification processes from the Independent Third-Party Committee and reported to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on December 20, 2023. To confirm the facts in the report, Daihatsu was subjected to an on-site investigation by the MLIT on the following and subsequent days.

As a result of the MLIT’s on-site investigation, the MLIT commenced proceedings to revoke the Vehicle Type Approval for three models*1 sold in Japan for which the procedural irregularities were deemed to be serious. In addition, the MLIT confirmed new instances of procedural irregularities.
Furthermore, Daihatsu today received a rectification order urging the company to make fundamental reforms to the corporate structures that engaged in the procedural irregularities leading to the violations of laws and regulations to ensure that this type of procedural irregularities never occurs again.
The MLIT also directed Daihatsu to promptly submit notice if it becomes necessary to conduct a recall of the two models*2 concerning which non-compliance with standards may have occurred.

Committing violations of relevant laws and regulations through procedural irregularities that must be recognized as making light of the certification process, despite being in a position deep involvement in social infrastructure in the form of mini vehicles tailored to road conditions in Japan, is a circumstance that shakes very foundations of our company as an automobile manufacturer, and we recognize the extreme gravity of this situation. We have betrayed the trust of all our stakeholders including customers, and we would like to again convey our sincerest apologies for the great inconvenience that we have caused.

We take very seriously the indications in the rectification order that we received at this time, and in addition to conducting a thorough review of our certification procedures, we will implement reforms from the perspectives of management, the workplace environment and culture, and appropriate MONODUKURI and KOTODUKURI with strict legal compliance as a fundamental premise. We will work toward the company’s revitalization with comprehensive support from Toyota Motor Corporation.
We will compile measures to prevent reoccurrence, submit a report on those measures to the MLIT within one month, and report quarterly to the MLIT on the implementation status of those measures.
With regard to the additional instances of procedural irregularities that were discovered, we have conducted technical verification and confirmed that safety and environmental performance satisfies legal standards, and we will take any necessary measures, such as performing testing with the certification authorities in attendance, in accordance with indications from the MLIT.

*1: Daihatsu GRAN MAX /Toyota TOWN ACE / Mazda BONGO (All models are pickup truck type only)

*2: Daihatsu CAST / Toyota PIXIS JOY