Toyota revamps Daihatsu's compact car business structure

Toyota announces that it will now take over the overseas business operations of Daihatsu, which will be done via a major revamping of the latter's business structure.

Toyota Raize

First off, the Emerging-market Compact Car Company which spanned both Toyota and Daihatsu will be dissolved. Toyota will then take responsibility for the product planning and certification processes of Daihatsu’s compact cars under a new entity dubbed the Toyota Compact Car Company. 

Toyota will likewise handle the business and product management aspect of Daihatsu’s operations. Specifically, this will fall under the Japanese car maker’s Business & Sales unit. 

Daihatsu will also retain its status as a commissioned entity that will handle actual vehicle development. With the aid of Toyota, Daihatsu is also set on transforming itself into a “mobility company centered on mini vehicles.” 

Last but not least, Toyota Daihatsu Engineering & Manufacturing Co., Ltd and Toyota Motor Asia Pacific Pte Ltd. will become Toyota’s Asia Regional headquarters. Together, these two entities will be known collectively as Toyota Motor Asia. 

In enacting these organizational changes, Daihatsu says that these will help prevent issues similar to the procedural irregularity scandal from happening again. 

Toyota Wigo

For context, Toyota and Daihatsu found out last year that several of the latter’s ASEAN-bound products had been subjected to rigged crash tests. The company has since conducted several investigations, and has replaced its top management team, including its CEO following the fiasco. 

Currently, locally available Daihatsu vehicles sold under the Toyota brand include the Wigo, Avanza, Veloz, Vios, Yaris Cross, Raize, and Lite Ace. So the question now is, how will Toyota’s deeper role in Daihatsu’s vehicle development affect the local market in the future? 

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