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Dialogue and Empathy Driving Daihatsu's New Leadership: Reform

Daihatsu's leadership change was revealed at a press conference, attended by both Daihatsu and Toyota. We delve into the remarks made during the event to understand the strategies the new management team intends to implement to regenerate the ailing company.

Daihatsu's New Leadership Focuses on Dialogue and Empathy for Strategic Reform
Daihatsu's New Leadership Focuses on Dialogue and Empathy for Strategic Reform

Dialogue and Empathy Driving Daihatsu's New Leadership: Reform

In a significant move, Daihatsu, the Japanese automobile manufacturer, has announced a new leadership team aiming to revitalise the company and rebuild its reputation following recent challenges. The new team, led by Masahiro Inoue, the incoming President, and Keiko Yanagi, the newly appointed Director, has been tasked with preventing recurrence of issues and positioning Daihatsu for sustainable future growth.

Keiko Yanagi, currently the Deputy Chief Officer of Toyota's Customer First Promotion Group, has taken on a role at Daihatsu. Masahiro Inoue, who has been heading Toyota's operations in Latin America and the Caribbean, will take over as Daihatsu's next President from March 1.

Inoue's mission at Daihatsu includes strengthening the company's core minivehicle business, deepening collaboration with Toyota, and improving internal and external communication. The aim is to reinforcing Daihatsu’s traditional strength in minivehicles, enhance efficiency through collaboration, and foster a culture of openness to regain trust and improve overall company morale and public perception.

To achieve this, Inoue plans to focus on several key strategic areas. Firstly, he aims to strengthen Daihatsu’s core minivehicle business, initiating reforms after certification issues came to light. Secondly, the company will deepen its collaboration with Toyota, taking on more outsourced manufacturing and operational tasks from its parent company. Lastly, Inoue emphasises transparent and effective communication as part of the company's fresh start.

The new leadership's efforts form part of a broader reform movement led by Inoue to restore Daihatsu’s reputation and position the company for sustainable future growth, supported by Toyota’s guidance and resources.

Meanwhile, Daihatsu is 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. To manage its capacity, Daihatsu will focus its operations on minivehicles and outsource its overseas business for planning, development, and production to Toyota.

The revitalization plans of the new leadership will be examined in a press conference Q&A session. Sunao Matsubayashi and Soichiro Okudaira, the current Chairman and President of Daihatsu respectively, will resign from their posts. They will be joined by Masanori Kuwata, the new appointee at Daihatsu, who previously led human resources at Toyota.

At a joint press conference, Koji Sato, President of Toyota, introduced Masahiro Inoue as the incoming President, highlighting his experience in structural reform and dialogue with frontline members. Sato and Inoue emphasised their commitment to preventing recurrence of issues reported to the Ministry of Land, Infrastructure, Transport and Tourism.

The new team aims to rebuild Daihatsu from the ground up, with Inoue leading the on-site management. Daihatsu will rebuild in the wake of certification irregularities and focus on being a "mobility company centered on compact vehicles." These efforts signify a new chapter for Daihatsu, as it embarks on a journey towards revitalisation and sustainable growth.

[1] Daihatsu Press Release, 2022. [2] Toyota Press Release, 2022.

Keiko Yanagi, previously with Toyota's Customer First Promotion Group, has joined Daihatsu's new leadership team, tasked with improving communication and reinforcing the company's minivehicle business. Masahiro Inoue, from Toyota's operations in Latin America and the Caribbean, will lead Daihatsu as President, focusing on strengthening the minivehicle business, deepening collaboration with Toyota, and overseeing a culture of openness. The aim is to restore Daihatsu's reputation and position the company for sustainable growth in the automotive industry, with a focus on finance and transportation.

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