Group Troubles Move Forward Akio Toyoda’s Vision Speech

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Toyota Motor Corporation Chairman of the Board of Directors Akio Toyoda (aka Morizo) today spoke to an audience of chairmen, presidents, and front-line leaders from 17 Toyota Group companies [1] at the Toyota Commemorative Museum of Industry and Technology [2] on the company’s founding principles and outlining his vision for the Group’s future direction – called “Inventing our path forward, together.”

While originally planned for 14 February 2024, the birthday of company founder Sakichi Toyoda, the speech was brought forward in light of recent “irregularities” at Group companies. (AutoInformed: Toyota: More Today Trouble Over Hino Motors Emission Fraud; Toyota, Daihatsu Form Emerging Market Compact Car Company) See Daihatsu Motor below.*

The automotive industry is being transformed by CASE (Connected, Autonomous/Automated, Shared, and Electric) and other technological innovations. Toyota Group is being overhauled. To achieve this goal, the Toyota Group has formulated a shared vision driven by Chairman Toyoda’s strong commitment to ensuring that “all Group employees move toward the future with a common perspective and values.”

“What I must do right now is show the direction that the Group should go in and create a place for the next generation to return to if they falter,” Toyoda said. “In other words, what I must do is set forth a vision for the Group. The starting point of the Toyota Group is to make ever-better things that make many people happy; in other words, to invent. ‘Inventing our path forward, together.’ Under this vision, we all should embrace the spirit of invention within us, think of others, hone our skills, and continue to make the right things for them. In doing so, we will build a culture in which we can express gratitude to each other and become needed in the future.

“Today, at the Toyota Commemorative Museum of Industry and Technology, which can be considered our starting point, we made that pledge to each other. As the person responsible for the Toyota Group, I will lead the transformation, and hope that I can count on your continued support,” Toyoda said.

“The Toyota Group’s history began with Sakichi Toyoda’s invention of the Toyoda wooden hand loom in 1890, and his subsequent founding of Toyoda Shoten. These efforts stemmed from Sakichi’s desire to make life easier for his mother. Thinking of others, learning, honing skills, making things, and bringing smiles to people’s faces―this passion for invention is the true starting point of the Toyota Group.

“Ever since, the Group has grown around the core mission of making people smile and contributing to society through monozukuri [2] and invention. In the 1930s, Kiichiro Toyoda established Toyota Motor Co., Ltd., setting out to shift the Toyota Group’s focus from textiles to the automobile industry. He believed that “it is not just about making automobiles – with Japanese ideas and skills, we must create an automobile industry for Japan.” Together with many partners in parts, steel, rubber, and electronics, he laid the foundation for today’s auto industry.” Toyoda said.

Toyoda concluded his presentation of the Group vision saying. “Inheriting the ambition of those who came before us, with the mobility business at our core, let’s bring smiles to the faces of people all over the world. Let’s create a future in which the children can dream more freely and prosperously. As members of the Toyota Group, let’s invent our path forward, together.”

*Daihatsu Motor

Toyota City, Japan, 16 January 2024: ―Toyota Motor Corporation (Toyota) would like to take this opportunity to once again express its sincere apologies to all stakeholders, including customers, suppliers, and dealers, for the inconvenience and concern that it has caused as a result of the procedural irregularities committed by Daihatsu Motor Co., Ltd. (Daihatsu).

Daihatsu received a rectification order regarding procedural irregularities from the Ministry of Land, Infrastructure, Transport and Tourism today. Toyota will fully support Daihatsu not only in reviewing its certification operations but also in making fundamental changes in its corporate culture and management so that Daihatsu can once again be trusted and chosen as a company of choice.

Going forward, we will work with Daihatsu to carefully respond to the concerns of our customers, suppliers, and dealers in a courteous and polite manner. In addition, we will report on measures for revitalization and transformation to prevent recurrence and on the rectification order in about one month.

Background

Toyota City, Japan, 30 December 2023―Today, Daihatsu Motor Co., Ltd. (Daihatsu) received the investigation results of the Independent Third-Party Committee (chaired by Makoto Kaiami) commissioned by Daihatsu regarding procedural irregularities, which it reported to Toyota Motor Corporation (Toyota) in turn. The investigation found new irregularities in 174 items within 25 test categories, in addition to the door lining irregularity in April and the side collision test irregularity in May. These encompassed a total of 64 models and 3 engines of vehicles (total of models currently being produced, developed, or ceased in production), including 22 models and 1 engine being sold by Toyota.

We would like to express our sincere apologies for the inconvenience and concern this has caused to all stakeholders, including customers.

In response to these findings, Daihatsu decided today to temporarily suspend shipments of all Daihatsu-developed models currently in production, both in Japan and overseas. Toyota has also decided to temporarily suspend shipments of the affected models.

Over the course of the investigation by the Independent Third-Party Committee, Daihatsu received some information regarding models that may have been involved in the procedural irregularities. In response, Daihatsu has been conducting one-by-one in-house technical verification and actual vehicle testing for these vehicles to ensure that their safety and environmental performance meet legal standards.

In the final stage of the investigation, it was discovered that a different airbag control unit (ECU) than the mass-production model was used for the airbag tests for Daihatsu Move / SUBARU Stella, Daihatsu Cast / Toyota Pixis Joy, Daihatsu Gran Max / Toyota Town Ace / Mazda Bongo. Although technical verification confirmed that the airbag met standards of occupant protection performance, in the course of testing, it was found that the “Safety Performance Standard for Occupant Evacuation (Unlocking)” in the side collision test of Daihatsu Cast / Toyota Pixis Joy may not comply with the law. At this time, we are not aware of any accident information related to this matter, but we are conducting thorough technical verification and investigating the cause to take necessary measures as soon as possible.

For other cases, we have confirmed that the performance standards specified by the regulations are met, and the validity of the verification results and process has also been confirmed by TUV Rheinland Japan (TRJ), a third-party certification organization.

Certification consists of having the national authorities inspect and confirm that vehicles meet various standards so that customers can drive their vehicles with peace of mind. We consider certification to be a major prerequisite for doing business as an automobile manufacturer. We recognize the extreme gravity of the fact that Daihatsu’s neglect of the certification process has shaken the very foundations of the company as an automobile manufacturer.

Since 2013, Toyota has been increasing the number of OEM models it receives from other companies, mainly compact vehicles. We deeply regret that the development of these vehicles may have been a burden on Daihatsu and that we were not aware of the situation with the company’s certification operations.

Daihatsu has informed us that, going forward, it will clarify the situation with the authorities and take appropriate action under their guidance. It will also thoroughly investigate whether there have been any other similar cases to ensure customer safety first and foremost. We at Toyota will also fully cooperate with this investigation.

We believe in order to prevent recurrence, in addition to a review of certification operations, a fundamental reform is needed to revitalize Daihatsu as a company. This will be an extremely significant task that cannot be accomplished overnight. It will require not only a review of management and business operations but also a review of the organization and structure, as well as a change in human resource development and awareness of each and every employee. Toyota will provide our full support to Daihatsu’s revitalization so that it can return to its roots as the “compact mobility company” that Toyota and Daihatsu are striving for it to be, as well as regain the trust of all stakeholders.

Inevitable Toyota Group Footnotes

[1] 17 Toyota Group companies

  • Toyota Industries Corporation
  • Toyota Motor Corporation
  • Aichi Steel Corporation
  • JTEKT Corporation
  • Toyota Auto Body Co., Ltd.
  • Toyota Tsusho Corporation
  • AISIN corporation
  • DENSO Corporation
  • Toyota Boshoku Corporation
  • Toyota Fudosan Co., Ltd.
  • Toyota Central R&D Labs, Inc.
  • Toyota Motor East Japan, Inc.
  • Toyoda Gosei Co., Ltd.
  • Hino Motors, Ltd.
  • Daihatsu Motor Co., Ltd.
  • Toyota Housing Corporation
  • Toyota Motor Kyushu, Inc.

[2] Toyota Commemorative Museum of Industry and Technology: A facility established and operated jointly by the Toyota Group to convey upon younger generations the importance of both monozukuri (to make things; production or manufacturing and craftsmanship – KZ) and a spirit of research and creativity, thereby contributing to the development of society.

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