The Toyota-Daihatsu jointly owned internal company; Emerging-market Compact Car Company (EMCC) will be dissolved effective today. The company was previously responsible for models like the AC100 generation Toyota Vios and the ASEAN market Toyota Yaris Cross.

The reorganization comes after Daihatsu was revealed to have fudged vehicle homologation and crash testing data for many of its models, including those sold in Southeast Asia.

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Under the new structure, Emerging Market Car Company will be known as Toyota Compact Car Company. Daihatsu will still have a role in developing B-segment Toyota models in this region, but not as a project leader.

Toyota will take responsibility from development to certification. Daihatsu will be commissioned to execute only specific areas of vehicle development, working under Toyota’s supervision.

Toyota says this change will be made sequentially, "starting with models to be switched over going forward."

This means that Daihatsu-developed EMCC models that are too far along into the development cycle, next generation Toyota Yaris for example, will continue its current course, but with Toyota conducting a full independent audit.

New generation models, like the next generation Toyota Vios, will no longer be developed by Daihatsu.

Also, the Singapore- and Thailand-based regional headquarters, Toyota Daihatsu Engineering & Manufacturing Co., Ltd. (TDEM) and Toyota Motor Asia Pacific Pte Ltd. (TMAP), will now be renamed as Toyota Motor Asia (TMA).

Both the Thailand (engineering related) and Singapore (sales and marketing related) offices of TMA will operate under the Asia Region of Toyota.