On April 8, Toyota Motor Corporation (Toyota) and Daihatsu Motor Co., Ltd. (Daihatsu) announced their decision to reform the overseas business structure of both companies while aiming to make Daihatsu a "mobility company centered on mini vehicles" going forward.
Overview of the changes:
- Shifting the product planning function from the Emerging-market Compact Car Company spanning Toyota and Daihatsu to the Toyota Compact Car Company. As Toyota Compact Car Company will be the contractor of Daihatsu, Toyota will be responsible for the entire process from development to certification.
- Transferring the business and product management function to the Business & Sales Unit of Toyota
- Other areas related to subcontracting, including resource management and optimization, will also be reported to Toyota to strengthen the partnership.
Toyota Daihatsu Engineering & Manufacturing Co., Ltd. (TDEM) and Toyota Motor Asia Pacific Pte Ltd. (TMAP) will become the Asia Regional Headquarters, belonging to the Asia Region of Toyota, and be renamed "Toyota Motor Asia (TMA)."
On the same day, Daihatsu also announced its efforts to prevent recurrence. As part of the management reform, the Executive manager and deputy Executive managers will be eliminated, and the five-level organization will be streamlined to three levels (president => Executive Vice President => Chief Officer). The functional and vertical divisions will be eliminated, reorganizing into an organization with “horizontal collaboration” that is communication-oriented. In addition, it also explains the company's efforts to reform MONODUKURI and KOTODUKURI, its corporate culture, and to clarify management responsibility.
(Toyota press release on April 8, 2024)(Daihatsu press release on April 8, 2024)
