Scandal-mired Toyota group automaker Daihatsu reshuffles leadership

Japanese automaker Daihatsu has named a veteran at its parent company Toyota to replace its president as it tries to repair the damage from a scandal over cheating on vehicle safety tests

TOKYO -- Japanese automaker Daihatsu on Tuesday named a veteran at its parent company Toyota to replace its president as it tries to repair the damage from a scandal over cheating on vehicle safety tests.

The troubles at Daihatsu surfaced after a whistleblower reported the cheating. A third-party review found violations, such as carrying out tests on just one side of a car when both sides had to be tested, that had persisted for decades. The appointments of a new president, executive vice president and one new director highlight Toyota’s determination to play a leading role in the reforms at its 100% owned subsidiary.

Masahiro Inoue, now overseeing Toyota’s business in South America, will become Daihatsu President effective in March, Toyota Chief Executive Koji Sato told reporters in Tokyo.

Inoue replaces Soichiro Okudaira, who is resigning. Okudaira also had been sent in by Toyota. Daihatsu's chairman, Sunao Matsubayashi, and three other directors resigned. Two of the directors left the board but kept their positions.

Masanori Kuwata, now at Lexus International Co., Toyota’s luxury brand, becomes Daihatsu's Executive Vice President, under the changes announced Tuesday. Keiko Yanagi, a deputy chief officer at Toyota, was named a director at Daihatsu.