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Toyota says president, chairman of scandal-hit Daihatsu unit to step down

TOKYO — Toyota Motor Corp said on Tuesday both the president and chairman of Daihatsu Motor will step down almost a year after the small-car unit said it had rigged collision safety-tests. The departures are among the most drastic changes Daihatsu has made so far, as Toyota seeks to return the brand to its roots as one of Japan's most iconic compact car makers. Toyota faces a potential hit to its reputation from the safety certification lapses at Daihatsu, as well as separate governance issues at truck maker Hino Motors and affiliate Toyota Industries. The scandals at the three companies triggered a rare apology of Toyota Chairman Akio Toyoda last month. In a statement, the world's top-selling automaker said its chief executive officer for the Latin America and Caribbean region, Masahiro Inoue, will replace Soichiro Okudaira as Daihatsu's president effective March 1. Daihatsu's chairman, Sunao Matsubayashi, will also step down and will not be replaced, Toyota added. The outgoing Okudaira had worked at Toyota for nearly four decades before becoming president of Daihatsu in 2017, a year after it became a wholly owned Toyota subsidiary. Toyota Chief Executive Koji Sato told reporters, however, that the organizational change at Daihatsu was not carried out as a punishment for the outgoing executives. In volume terms, Daihatsu accounted for 7% of Toyota's total group sales of 11.2 million vehicles in 2023, including those of the luxury Lexus brand and Hino Motors. Given the misconduct over the safety test certification applications, Daihatsu also will be removed from a commercial vehicle partnership known as the Commercial Japan Partnership Technologies (CJPT), the automaker said in a separate statement. The partnership was established in April 2021 by Toyota, Hino and Isuzu Motors to facilitate technology development for commercial vehicles. Suzuki Motor and Daihatsu joined in July the same year. Daihatsu's 10% equity stake in the partnership will be transferred to Toyota, the statement said. (Reporting by Daniel Leussink and Satoshi Sugiyama; Editing by Kim Coghill & Shri Navaratnam and Miral Fahmy) Government/Legal Hirings/Firings/Layoffs Plants/Manufacturing Toyota Daihatsu

Toyota, Lexus expanding Takata airbag recall, re-notifying customers

Toyota is re-notifying owners and expanding its Takata airbag inflator recall for some regions. The renewed campaign covers 247,000 examples of the Toyota Corolla, Matrix, Sequoia, Tundra and Lexus SC430 that are located in southern Florida, along the Gulf Coast, Puerto Rico, Hawaii, the US Virgin Islands, Guam, Saipan and American Samoa. All of the models come from the 2001-2004 model years and have potentially faulty Takata-made inflators on the front passenger side. According to the company, testing shows the problem warrants "immediate action," and its press release says, "this action intensifies Toyota's efforts to reach customers and remedy previously recalled vehicles, and a small number of newly included vehicles."
According to Toyota, it submitted some recalled inflators to Takata for testing, and it found a high probability of rupturing in high humidity areas. The automaker said it had no reports yet of injuries or fatalities related to the problem.
This is Toyota's third inflator recall this year. In June, it called in for repair the same vehicles from the 2003-2005 model years in high-humidity areas, and it conducted a separate campaign nationwide for the parts in additional models. In April 2013, it also announced a fix campaign for 1.73-million vehicles worldwide for the same issue.

Illinois’ pro-union stance kills bid for Toyota-Mazda plant, report says

Mazda and Toyota are fielding bids from states eager to land its new prize: an all-new $1.6 billion U.S. plant where the Japanese automakers would jointly build electric vehicles and employ around 4,000 workers. Now we can apparently scratch Illinois off the list of contenders. According to Automotive News, the Land of Lincoln has been disqualified due to a lack of shovel-ready sites and the state's lack of a right-to-work law curtailing union membership. Mark Peterson, the president and CEO of economic development agency Intersect Illinois, told the publication he's been informed Illinois is not among the three or four finalists for the facility. It's believed those finalists are all in the South. Peterson said that "many national site consultants charged with making recommendations for corporate relocations and expansions will not even consider a state that is not a right-to-work state. In this case, the three states I am told are still in the running are all right-to-work states." The Midwest may be the ancestral home of U.S. automotive manufacturing, but the South has made major inroads in recent decades, with the likes of Honda, Mercedes-Benz, Nissan and Toyota all opening plants there, among others, thanks to lucrative tax incentives and the absence of labor unions. Recent years have also seen so-called right-to-work laws, which prohibit union dues and membership as a condition of employment in organized workplaces, spread to traditional labor strongholds such as Michigan and Wisconsin. The new joint venture plant, which would start operating in 2021, would be capable of producing 300,000 vehicles a year, with production divided between the two automakers. Mazda and Toyota would also take small stakes in one another as part of the deal. It's expected that at least 15 states have submitted proposals to attract the plant. Expect the Illinois news to trigger a new round of debate over the role of organized labor in the modern economy.Related Video: Image Credit: Reuters Green Plants/Manufacturing Mazda Toyota