Toyota Motor and Daihatsu Motor plan to reshape their overseas business structure while Daihatsu would also change its focus to become a “mobility company centred on mini vehicles”.

The announcement followed the safety test data falsification scandal at Daihatsu which forced the automaker to suspend production at the end of last year. Test data cover ups had also emerged at the group’s truck making unit Hino Motors and at diesel engine maker Toyota Industries in the last two years.

Toyota said the restructuring plan aimed to “thoroughly prevent the recurrence of procedural irregularities at Daihatsu” and to better leverage the affiliate’s strengths in small cars.

Toyota said the “emerging market compact car company”, a division which oversees emerging market operations of both Toyota and Daihatsu, would be dissolved.

In future Toyota would take full responsibility for the group’s overseas product development operations, from product planning and development to certification, while Daihatsu would be “commissioned” to handle actual product development.

This change would happen gradually as new models were developed and launched.

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Toyota-Daihatsu’s current relationship structure

The key structural changes to be implemented include:

  • The transfer of the Toyota-Daihatsu joint Emerging-Market Compact Car operations to Toyota Compact Car. Toyota would become directly responsible for the entire product development and certification process while Daihatsu would become a contractor to Toyota.
  • The transfer of the business and product management functions to the Business & Sales Division of Toyota.
  • Other areas related to subcontracting, including resource management and optimisation, would also report directly to Toyota.

Thailand-based Toyota Daihatsu Engineering & Manufacturing (TDEM) and Singapore-based Toyota Motor Asia Pacific (TMAP) would become part of Toyota’s Asia Regional Headquarters which would be renamed Toyota Motor Asia (TMA).

New corporate structure from 1st May 2024