Toyota Daihatsu agrees to compensate suppliers for production disruptions Reuters

© Reuters. FILE PHOTO: The Daihatsu automobile logo is seen at a showroom in Tokyo, Japan, June 12, 2017. Photo taken on June 12, 2017. REUTERS/Kim Kyung-hoon/file photo

TOKYO (Reuters) – toyota Daihatsu Motor Co., Ltd. (NYSE:), the compact car company, will compensate 423 domestic suppliers with which it has direct business relationships as its plants in Japan remain offline due to a safety scandal, a spokesperson said Monday. .

The compact car specialist has halted production in Japan until the end of next month, a spokeswoman said.

The company said it would consider compensation for suppliers based on historical business volume, adding that it was working to assess the impact of the disruption on its wider supplier network.

Daihatsu said Wednesday it had stopped deliveries of all vehicles after a safety investigation found problems with 64 models, including nearly two dozen sold under the Toyota brand.

The spokesperson added that the company would work with its key suppliers to address the fallout from the scandal and may also help smaller, uncompensated subcontractors access support funding from the Department for Industry.

Daihatsu’s overseas operations are focused on Southeast Asia. Two joint plants it operates with Malaysian carmaker Perodua have resumed production of Perodua-branded cars after receiving regulatory clearance, a spokesperson said.

The company, which is wholly owned by Toyota, said on Friday it had resumed shipments from its Indonesian subsidiary PT Astra Daihatsu Motor.