By Maki Shiraki
TOKYO (Reuters) – Scandal hit Toyota Motor (NYSE:) subsidiary Daihatsu aims to fully resume vehicle development as early as the end of this year, the compact carmaker’s president told reporters, adding that he saw opportunities in South America and Africa.
WHY IT’S IMPORTANT
Daihatsu said last year it had conducted safety tests on about 88,000 small cars, most of which were sold under the Toyota brand. The scandal posed a reputational risk for Japan’s largest automaker.
New president Masahiro Inoue was sent by Toyota to turn Daihatsu around and put the company on the path to growth. Resuming new car development will be an important milestone.
KEY QUOTES
“Once we have taken measures to prevent recurrence of the certification problem, we want to move forward as early as the end of the year,” Inoue said of the full development, adding that minor changes to the models could happen even earlier. .
“Emerging markets are a perfect fit for us, like throwing a fastball right down the middle of the strike zone,” he told reporters during an April 22 roundtable. His comments were embargoed until Wednesday.
“South America and Africa” are the markets to focus on for the next decade, he said.
CONTEXT
*All but one of Daihatsu’s models have been confirmed to meet domestic standards and shipments have resumed.
*Inoue was previously Toyota’s head of Latin America.
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