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Daihatsu Motor will pay compensation to 423 domestic suppliers as its Japanese factories are idle and suspended until the end of next month due to a safety scandal.
The company is considering compensating suppliers based on past business volume and is assessing the impact of the shutdown on its vast network of suppliers. The company stopped shipping 64 models, including the Toyota brand. Daihatsu said it would work with key suppliers to address the impact and may assist smaller subcontractors in accessing Ministry of Industry support funding.
The joint venture factory between Daihatsu and Perodua in Southeast Asia has resumed production, and its Indonesian subsidiary PT Astra Daihatsu Motor also resumed shipments last week.
(Source: Reuters Image source: freepik)
