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Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests

CY Foong · Jan 17, 2024 02:45 PM

Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 01

In light of Daihatsu’s safety scandal, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has conducted independent safety tests on some of its models as well as on-site investigations in the company.

Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 02

Toyota Town Ace Truck (top) and Mazda Bongo Truck shown, both along with the Daihatsu Gran Max Truck had their VTAs revoked in Japan

As a result, the MLIT announced that it is revoking the Vehicle Type Approval (VTA) for 3 models sold in Japan for which the procedural irregularities were deemed to be serious.

The 3 affected models are the Daihatsu Gran Max, Toyota Town Ace and Mazda Bongo. Only the pick-up truck versions have their certificates revoked while the van variants are unaffected for now.

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Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 01

Malaysian-spec Gran Max shown

The three trucks are essentially the same aside from the badges placed on them and are imported from Indonesia. The Gran Max is also currently being sold in Malaysia but Daihatsu Malaysia has not issued any suspension of sales as of writing.

In its independent crash test report, MLIT found that the vehicle used in its test has a different structure than that of the vehicle submitted for VTA. MLIT will hold a hearing against Daihatsu on 23 January and will make a final decision on the Gran Max/Town Ace/Bongo Truck’s fate.

Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 02

Bloomberg Intelligence senior auto analyst, Tatsuo Yoshida said “This was expected, but it seems unlikely any vehicles besides these three will have their certifications revoked.”

He added that the financial burden of regaining certification, rebooting production, and compensating thousands of partners might be too much for Daihatsu and suggested that parent, Toyota would have to step in to help.

Japan’s MLIT also directed Daihatsu to promptly submit a recall notice to two other models – Daihatsu Cast and its twin, Toyota Pixis Joy – if it becomes necessary.

Also read: Daihatsu: Will compensate 423 domestic suppliers; currently assessing total impact for production stoppage

Following MLIT’s decision to revoke the certification of the trio of pick-up trucks, Daihatsu apologised for betraying the trust of its stakeholders including customers and will work towards its revitalisation with comprehensive support from Toyota in its latest press statement.

Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 03

What initially only involved half a dozen models in early 2023 ballooned into a major safety scandal when internal findings in December revealed 174 irregularities across 64 models dating as far as 1989.

Also read: More frauds found, what's wrong with today's Daihatsu? Audit team cites failure to follow Toyota's genba philosophy as cause

Daihatsu scandal: Gran Max and two other models' compliance certificate in Japan revoked after safety tests 04

Since then, Daihatsu has suspended operations and shipments to Japan and other markets at least until the end of January. Operations in Indonesia and Malaysia, two markets which still offer Daihatsu models (Perodua in the latter), have resumed normally after approvals by the respective governments.

Amidst the ongoing scandal, Daihatsu is expected to lose up to USD 700 million according to an earlier report by Japan’s Nikkei.

Also read: Daihatsu scandal: Company could lose up to USD 700 million; troubles are only beginning

CY Foong

Writer

Traded advertising for a career that fits his passion for cars. Enjoys spotting cars during his free time and has a soft spot for Japanese Kei cars but drives a thirsty manual sedan.

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