Toyota Motor Corp (NYSE:TM) disclosed that the president and chairman of its small-car unit subsidiary, Daihatsu Motor, are stepping down.
In particular, Daihatsu’s President Soichiro Okudaira and Chairman Sunao Matsubayashi will resign from their posts following revelations of misconduct related to rigged collision safety tests.
Toyota stated that Masahiro Inoue, chief executive officer for the Latin America and Caribbean region, will replace Soichiro Okudaira, effective March 1.
The Japanese automaker plans to abolish the post of Chairman and remove Daihatsu from the commercial vehicle partnership known as the Commercial Japan Partnership Technologies (CJPT).
In December last year, Daihatsu announced the temporary suspension of shipments for all its developed models following a recent investigative report exposing safety test manipulations involving approximately 64 models and three engines.
The company opted to compensate its 423 domestic suppliers in Japan due to the ongoing production halt.
Also Read: Toyota Hits Global Production High With 11.52M Vehicles In 2023, Yet Daihatsu And Hino Motors Raise Red Flags
Price Action: TM shares traded higher by 2.34% at $231.14 premarket Tuesday.
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