Toyota Motor Corp stated on Tuesday that not only the president but also the chairman of Daihatsu Motor will step down, Reuters reported.
This development comes nearly a year after the small car unit confessed to rigging collision safety tests, the newsire stated.
These exits are among the most extreme that Daihatsu has made so far, as Toyota aims to bring the brand back to its roots as Japan’s most iconic compact carmakers, the newswire reported.
Toyota faces a potential hit to its reputation from the safety certification lapses at Daihatsu, as well as separate governance issues at truck maker Hino Motors, opens new tab and affiliate Toyota Industries.
The scandals at the three companies triggered a rare apology of Toyota Chairman Akio Toyoda last month.
In a statement, the Chief Executive said that Masahiro Inoue, will replace Soichiro Okudaira as Daihatsu’s president effective March 1.
Daihatsu’s chairman, Sunao Matsubayashi, will also step down and will not be replaced, Toyota added.