Japanese carmaker that faked safety tests sees long wait to reopen factories

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. shuttered / ˈʃʌt ərd / (adj.) – (of a business or activity) stopped, not operating, or closed
    Example:

    The pandemic caused many small businesses to remain shuttered for a long time.


  2. whistleblower / ˈwɪs əlˌbloʊ ər / (n.) – a person who reports or reveals illegal or dishonest activities within a company or organization
    Example:

    A whistleblower revealed a financial scandal.


  3. sweeping / ˈswi pɪŋ / (adj.) – affecting a huge amount or range of things, usually causing a significant difference
    Example:

    The government made sweeping changes to improve healthcare access for all citizens.


  4. reform / rɪˈfɔrm / (n.) – the act or process of making changes to something, such as a system, organization, or practice, to improve it
    Example:

    The government introduced education reforms to improve schools and help students learn better.


  5. governance / ˈgʌv ər nəns / (n.) – the way a government, company, or organization is controlled or managed by its leaders
    Example:

    Good governance is important for building strong partnerships and trust between the government and its citizens.


Article

Read the text below.

A Japanese automaker that cheated on safety tests for decades said on January 22 that it doesn’t expect to resume shipping cars any time soon.


The Japanese government ordered a subsidiary of Toyota to halt production of its entire lineup after reports of faked safety test results emerged last year.


The Daihatsu Motor Co. skipped mandatory safety tests by copying data from testing on one side of cars to the other and used timers to ensure airbags went off in tests, a review found.


No major accidents have been reported in connection with the cheating, but the news has raised serious questions about oversight at Daihatsu, as well as its corporate parent Toyota.


Japanese regulators approved five of the company’s models on January 19 after more testing, but Daihatsu executives said its factories will remain shuttered as it waits on suppliers.


“We face a very tough road ahead in winning back customer trust about safety and security,” corporate manager Keita Ide said on January 22, stressing that customers felt betrayed. He said the company is working on a plan to prevent cheating in the future.


Daihatsu is known for kei cars, or light automobiles, including the popular Daihatsu Tanto “kei,” or small, car. It also produces the Toyota Raize hybrid sport-utility vehicle, also sold as the Daihatsu Rocky.


An investigation including third-party experts found 174 cases of faked tests affecting dozens of models, including cars sold under the Toyota Motor Corp. nameplate. The review found that cheating went back 30 years.


The scandal began after a whistleblower came forward in April last year. Daihatsu has apologized and promised sweeping reforms to its corporate culture. Daihatsu President Soichiro Okudaira has attributed the cheating to pressure on workers to meet tight deadlines.


Daihatsu said there may be recalls, although none have been announced yet. Japanese media reports said the recalls are likely to total more than 300,000 vehicles.


“The standards of governance at the Toyota group are being questioned,” nationally circulated Sankei newspaper said in an editorial. “Getting to the bottom of this is needed, as consumer trust in the overall Toyota brand is at risk.”


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Do you think that Daihatsu’s actions reflect the overall governance within the Toyota group? Why or why not? How do you feel about Daihatsu and Toyota after learning about this issue? Discuss.
  • The review found that Daihatsu’s cheating went back 30 years. Why do you think they got away with it for that long (ex. customer’s trust in Toyota, no accidents were reported)? Do you think the company would’ve gotten away with it longer without the whistleblower? Why or why not? Discuss.

Discussion B

  • Daihatsu’s cheating was only uncovered due to a whistleblower who came forward in April last year. How do you feel about individuals who come forward as whistleblowers (ex. they are brave, they betray their company)? Why? Discuss.
  • What risks do you think come with blowing the whistle (ex. harm one’s professional reputation, financial consequences)? What benefits do you think a whistleblower can get from it (ex. justice for the victims, clear conscience)? Discuss.