The scandal at Daihatsu Motors worsens daily.
Faked safety tests were first thought limited; they now appear to impact virtually its entire product line, forcing the shutdown of all its production facilities in Japan and jeopardizing the company¡¯s reputation in all the markets in which it sells vehicles. Investigations indicate that improprieties stretch as far back as 1989, indicating a profound problem with the company¡¯s culture.
An official investigation suggests that competitive pressures undercut one of the guiding principles of the Toyota group (of which Daihatsu is a member): that of ¡°Genchi genbutsu,¡± or ¡°Go and see for yourself,¡± the ongoing process of on-site learning and problem-solving. This failure needs to be taken to heart not only by Toyota¡¯s executives but by those of all Japanese manufacturers. This country¡¯s reputation as home to the world¡¯s leading manufacturers is at risk if intensifying competition is driving its flagship companies to cut corners.
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