TOKYO: Embattled Daihatsu Motor Co. said Tuesday it has decided to appoint Masahiro Inoue, currently chief executive officer of the Latin America and Caribbean region division of its parent company, Toyota Motor Corp., as its new president to replace Soichiro Okudaira on March 1.

Daihatsu also said that its chairman, Sunao Matsubayashi, will step down from the post and that three directors will leave its board. Toyota will also send officials to serve as an executive vice president and a board director at Daihatsu.

Under the new management, Daihatsu will work to prevent any recurrence of safety testing irregularities following a series of such misconduct.

“I will make the utmost efforts to reform the organizational culture that caused the misconduct and revive the company,” Inoue told a press conference in Tokyo on Tuesday. He said he will unveil a new management plan in April.

At the same press conference, Toyota President Koji Sato again apologized for the scandal involving the subsidiary. “Daihatsu will work with Toyota to produce vehicles while putting safety and security first, and will work to prevent a recurrence by reforming the corporate culture and management,” Sato said.

Sato revealed that Toyota had considered absorbing Daihatsu before deciding on its new management team, but decided to retain Daihatsu, which has unique expertise in small vehicles, following encouragement from business partners and customers.

On Friday, Daihatsu reported preventive measures, including a management reshuffle and a plan to increase workforce at its testing division, to Japan’s transport ministry after receiving a correction order under the road transport vehicle law in January.

On Monday, the company resumed production of some models whose safety has been confirmed by the ministry.

JIJI Press