Car manufacturer Daihatsu has shut down all four of its factories in Japan while transport ministry officials investigate improper tests for safety certifications.
The closure of its production lines comes a week after Daihatsu – a unit of Toyota – announced it was suspending all vehicle shipments in and outside Japan after finding improper testing involving 64 models.
The safety test irregularities triggered an independent panel investigation, which found widespread and systematic problems at Daihatsu.
The full suspension of production comes after transport ministry officials launched a deeper investigation into the company’s vehicles.
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.
The stoppage is expected to affect thousands of car parts makers and their employees in a potential blow to local economies.
Daihatsu has pledged to compensate 423 domestic suppliers with which it has direct business relations and says it is working to assess the impact of the stoppage on its sprawling supplier network.
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The company, which makes Hijet trucks and vans and Mira hatchbacks, is one of at least five of Japan’s major car makers that has been investigated for safety and other violations in recent years.
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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.
Daihatsu’s internal investigation found 174 new cases of irregularities in safety tests and other procedures in 25 test categories, on top of problems reported earlier.
The issue first emerged in April when Daihatsu reported improper testing on door linings, before reporting problems in side collision testing in May.
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They also found data falsification and unauthorised testing procedures.
Speaking to reporters last week, Daihatsu president Soichiro Okudaira acknowledged the cheating on safety testing and procedures, saying it was equal to neglect of safety certificates.
He attributed the problems to pressure on workers to meet ambitious demands for tight development deadlines.