MANILA: Toyota will take over the development and certification of Daihatsu cars.

According to the Japanese automobile manufacturer, the assumption of the abovementioned operation from its subsidiary will cover the “entire process,” relieving Daihatsu of the product planning function and transferring the said role to Toyota Compact Car Company.

Meanwhile, Daihatsu’s business and product management function will be transferred to Toyota’s Business and Sales Unit.

Furthermore, the Emerging-market Compact Car Company, which spanned the organizations of both Toyota and Daihatsu until now, will be dissolved.

In addition, other areas related to subcontracting, including resource management and optimization will also be reported to Toyota to “strengthen the partnership.”

Toyota also revealed that Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (TDEM) and Toyota Motor Asia Pacific Pte Ltd. (TMAP) will become the company’s Asia Regional Headquarters and will be renamed Toyota Motor Asia.

In doing so, Toyota aims to make TDEM and TMAP more self reliant and increase their collaboration.

The decision of Toyota to take the major overseas operations from Daihatsu was spurred by the irregularities the latter was involved in.

Not too long ago, Daihatsu found itself in hot waters after it manipulated the safety test results for some of its vehicles.

The said scandal resulted in a major halt in Daihatsu’s vehicle shipment and the eventual intervention of the Japanese Ministry of Land, Infrastructure, Transport, and Tourism, which ordered a revocation of its Vehicle Type Approval.

Despite Daihatsu’s misconduct, Toyota still sees the former as a company whose strength can be leveraged. On that note, the latter — through structural reformation — aims to make its subsidiary a “mobility company centered on mini vehicles.”

“An implementation structure will be established to thoroughly prevent the recurrence of procedural irregularities at Daihatsu, in line with Daihatsu's resources and actual conditions, aiming to make ever-better cars and realize a mobility society by leveraging Daihatsu's strengths,” Toyota said in a press release.

Photos from Toyota and Juan Paulo Papa

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