Daihaitsu, a Toyota-owned company, announced it was suspending all vehicle shipments in and outside Japan after finding improper testing.

2

2

An independent panel examination into the safety test inconsistencies led to the discovery of widespread and systemic issues at Daihatsu.

Officials from the transport ministry began a more thorough examination of the company’s cars, which led to the complete halt of manufacturing.

A spokesperson for the small car specialists confirmed today that its plants in Shiga, Kyoto and Oita prefectures as well as at its headquarters in Osaka have closed and that production will be halted until the end of next month.

Thousands of auto parts manufacturers and their workers are anticipated to be impacted by the shutdown, which could be detrimental to local economies.

Along with pledging to reimburse 423 domestic suppliers with whom it has direct business relationships, Daihatsu also stated that it is analyzing the effects of the suspension on its extensive supplier network.

The problems were found in 64 models and three vehicle engines, including 22 models and an engine sold by Toyota.

Its issues also affected some Mazda and Subaru models sold in Japan, and Toyota and Daihatsu models sold abroad.

In addition to issues previously reported, Daihatsu’s internal inquiry discovered 174 more instances of irregularities in safety testing and other procedures across 25 test categories.

Prior to disclosing issues with side collision testing in May, Daihatsu first reported faulty testing on door linings in April.

They also found data falsification and unauthorised testing procedures.

Daihatsu president Soichiro Okudaira told reporters 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 fulfill ambitious demands for tight development timelines.