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The Toyota Avanza Premio manual version in Vietnam has been confirmed to be safe. Photo: TMV. |
More than a month since officially acknowledging the cheating in the safety testing process for cars it produces, Daihatsu is gradually lifting the sanctions imposed on it. Many different markets, including Vietnam, have started allowing the sale of models related to Daihatsu’s scandal.
Daihatsu cars allowed for resale
On January 26, Toyota Vietnam confirmed that it would resume delivering Toyota Avanza Premio manual version (MT) to dealers. This move came after the automaker received instructions from the Toyota Group and reported to the Vietnamese management agencies.
In particular, Toyota Avanza Premio MT will return to the dealership as it has been confirmed to meet safety and environmental protection standards by independent certification bodies abroad. Previously, Toyota Vietnam had to temporarily halt the distribution of Avanza Premio MT due to its involvement in Daihatsu’s safety cheating scandal.
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Toyota Avanza Premio MT has returned to the dealerships after nearly a month of suspension. Photo: Bối Hạ. |
Before Vietnam, Indonesia became the first country to allow Daihatsu to resume delivery operations. According to The Japan Times, the Indonesian government has confirmed the safety of Daihatsu vehicles as well as the locally-produced models under the Toyota brand. Therefore, the archipelago country has decided to “greenlight” Daihatsu’s resumption of the transportation of new cars as of December 23.
Notably, this decision by the Indonesian government came just a few days after the ban imposed by Japan on the transportation of cars manufactured by Daihatsu. After that, Malaysia also allowed the resale of Daihatsu and Perodua models.
Relaxation in Japan
Recently, NHK reported that Daihatsu has also had the suspension order for the transportation of 5 models it produces lifted by the Japanese Ministry of Land, Infrastructure, Transport and Tourism. Accordingly, Daihatsu will be allowed to resume transportation for the following models: Daihatsu Gran Max, Toyota ProBox, Toyota Town Ace, Mazda Familia Van, and Mazda Bongo.
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Japan allows Daihatsu to resume transportation for 5 models. Photo: Toyota. |
This decision was made after the Japanese Ministry of Land, Infrastructure, Transport and Tourism conducted tests on 45 Daihatsu models. As a result, the Japanese regulatory agency confirmed that the 5 aforementioned models all meet safety regulations.
Regarding the remaining models, the Japanese Ministry of Land, Infrastructure, Transport and Tourism said it will continue testing and will soon announce the results.
Furthermore, Daihatsu’s factories in its home country of Japan are still in the process of shutdown. According to a source from Bloomberg, Daihatsu is planning to restart its factories from mid-February.
Daihatsu’s losses
A report by Nikkei Asia shows that Daihatsu’s estimated losses in this cheating scandal are about USD 700 million, and it could even increase due to additional investigation fees, safety checks, or negotiations with suppliers.
According to Seiji Sugiura, an analyst at Tokai Tokyo Research Institute, the USD 700 million loss is equivalent to Daihatsu’s net profit for the entire fiscal year 2022.
Even if the safety cheating scandal’s impact on revenue cannot be offset by costs, Daihatsu will have to face its first loss in the past 30 years.
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Daihatsu may face its first loss in the past 30 years. Photo: Reuters. |
However, the biggest damage to Daihatsu in this scandal is undoubtedly the trust of customers and the company’s reputation. It is worth noting that in 2016, the Volkswagen emissions scandal, known as Dieselgate or Emissiongate, caused a wave of vehicle recalls using diesel engines from Volkswagen and other automakers worldwide.
Trust in Volkswagen significantly declined after the Dieselgate scandal. The German carmaker lost its ability to compete for the top position in the global automotive industry and had to spend billions of dollars to invest in electric vehicles.
In the Vietnamese market, Toyota Wigo, Toyota Avanza Premio, Toyota Veloz Cross, and Toyota Yaris Cross are some of the models that use the DGNA (Daihatsu New Global Architecture) platform from Daihatsu. Among them, the Avanza Premio MT is the only model involved in the safety scandal, which had temporarily suspended deliveries but has been allowed to return to dealerships after nearly a month.
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The Toyota Raize is one of the Toyota models that use the Daihatsu platform. Photo: Bối Hạ. |
Daihatsu’s current incident is likely to have a significant impact on the trust Vietnamese customers place in Toyota models that use the DGNA platform and the Toyota brand in general.
It is unclear how Daihatsu’s scandal will affect Toyota’s sales in the first month of the year, but Vietnamese customers may have another factor to consider when choosing between Toyota and other car brands in the market.
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