Toyota’s (TM) small car unit, Daihatsu Motor, announced this week that the company will compensate 423 of their suppliers whose plants have been idled after a safety investigation found issues involving 64 models, including almost two dozen sold under Toyota (NYSE:TM)'s brand.
The small car specialist has halted production in Japan until the end of next month, a spokesperson said.
The company intends to evaluate compensatory measures for suppliers, taking into account their historical business volumes. Additionally, they are actively assessing how the stoppage has affected their extensive supplier network.
The company plans to work together with its primary suppliers in the aftermath of the scandal. Daihatsu may also extend assistance to smaller subcontractors that aren't receiving compensation, aiding them in accessing support funds from the industry ministry.
Regarding Daihatsu's overseas operations, there's a notable focus on Southeast Asia. The spokesperson confirmed that production of Perodua brand cars has resumed at two joint venture plants in collaboration with Malaysian automaker Perodua, following regulatory clearance.
Furthermore, the company, a wholly owned subsidiary of Toyota, revealed last week that it had recontinued shipments from its Indonesian subsidiary, PT Astra Daihatsu Motor, as of Friday.
Shares of TM are up 1.03% in afternoon trading on Tuesday.