Updated December 28th, 2023 at 12:47 IST
Daihatsu Motor announces supplier compensation after production suspension
The company has said that it will maintain its production halt in Japan until at least the conclusion of January.
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Daihatsu Motor, a subsidiary of Toyota Motor Corporation specialising in small cars, revealed on Thursday its intention to provide compensation to both primary and secondary suppliers within its supply chain. This move aims to mitigate the financial impact of an ongoing production suspension, initiated following recent safety irregularities.
The company has said that it will maintain its production halt in Japan until at least the conclusion of January, pending ongoing investigations into suspected safety-inspection discrepancies. According to data from Teikoku Databank, Daihatsu's intricate supply chain in Japan encompasses approximately 8,300 entities, highlighting the widespread implications of the production hiatus.
Jun Nagata, Toyota's Chief Communications Officer, affirmed the parent company's support towards Daihatsu. Nagata indicated that Toyota has already allocated financial provisions, including prepared loans, to ensure adequate compensation measures for its wholly-owned subsidiary.
(With Reuters inputs)
Published December 28th, 2023 at 07:33 IST