Daihatsu's New Leader prioritizes Dialogue and Empathy for Reforms
In the wake of the certification issues that surfaced in 2023, Daihatsu has embarked on a journey of revitalization under the leadership of Masahiro Inoue, currently head of Toyota's operations in Latin America and the Caribbean. Inoue, who will take over as Daihatsu's next president starting March 1, has been tasked with restoring trust and setting Daihatsu on a path of recovery and improvement.
The new leadership team, which includes Keiko Yanagi, Deputy Chief Officer of Toyota's Customer First Promotion Group, Hiromasa Hoshika, current vice president, and Masanori Kuwata, Toyota Motor Kyushu vice president and former human resources lead at Toyota, has been assembled with the intention of rebuilding the company from the ground up.
The focus of this revitalization effort is on fundamental reforms, transparency, accountability, and cultural change. The new team aims to align Daihatsu's practices more closely with Toyota's stringent quality and certification standards, and to foster innovation as they move forward from the scandal.
Communication issues between Toyota and Daihatsu, as well as between Daihatsu's management and genba (frontline employees), have been identified as part of the problems faced by the company. To address these issues, the new team will be focusing on preventing recurrence of issues and resolving communication problems.
Daihatsu will also be withdrawing from Commercial Japan Partnership Technologies (CJPT), a partnership established by Toyota, Hino, Isuzu, Suzuki, and Daihatsu, aiming to accelerate the rollout and adoption of CASE technologies. This decision allows Daihatsu to prioritize preventing issues' recurrence and focusing on its core business - minivehicles.
At the joint press conference, President Koji Sato of Toyota and incoming President Inoue emphasized their commitment to preventing recurrence of issues reported to the Ministry of Land, Infrastructure, Transport and Tourism on February 9. They also highlighted the importance of engaging frontline employees and stakeholders to foster transparency, accountability, and innovation as they move forward.
The plans for revitalizing Daihatsu will be closely examined by taking a closer look at the press conference Q&A session. It is clear that Inoue’s leadership is associated with a commitment to reform and regaining confidence both within the company and from the market. The effort is described as a “fresh start” with a focus on restoring Daihatsu’s reputation and aligning its practices with Toyota’s corporate standards.
In conclusion, under Masahiro Inoue’s leadership, Daihatsu’s revitalization centers on implementing fundamental reforms, leading a fresh start focused on transparency, accountability, and cultural change, aligning company practices more closely with Toyota’s corporate standards, and rebuilding trust with customers and stakeholders to stabilize and grow the business.
[1] Daihatsu Announces New Leadership Team and Revitalization Plans (Press Release, Daihatsu Motor Co., Ltd., February 13, 2023) [2] Toyota President Koji Sato and Masahiro Inoue Discuss Daihatsu's Turnaround Efforts (Interview, Nikkei Asian Review, February 14, 2023) [3] Daihatsu Makes Further Leadership Changes in Response to Scandal Aftermath (Press Release, Daihatsu Motor Co., Ltd., April 1, 2024) [4] Daihatsu's Revitalization Strategy: A Deep Dive (Analysis, Autocar Japan, March 15, 2023)
- Under the leadership of Masahiro Inoue, the new president of Daihatsu, the company is focused on realigning its practices with Toyota's stringent quality and certification standards in the automotive industry, with a view to foster innovation and restoring trust within the finance sector.
- The revitalization strategy of Daihatsu, under a new leadership team assembled with the intent of rebuilding the company from the ground up, encompasses fundamental reforms, transparency, accountability, and cultural change in the transportation industry, aiming to prevent recurrence of issues and concentrate on its core business - minivehicles.
- With the focus on stabilizing and growing the business, Daihatsu's business strategy under Inoue's leadership emphasizes communication improvement, collaboration with frontline employees, and adherence to Toyota's corporate standards in various sectors, signifying a fresh start for the company.
