Toyota’s Daihatsu to Compensate Suppliers Over Production Halt
TOKYO (Reuters) – Toyota’s Daihatsu to Compensate Suppliers
Toyota Motor’s small car unit Daihatsu Motor will compensate 423 domestic suppliers as its plants in Japan remain idled due to a safety scandal. The company has halted production in Japan until the end of next month. Daihatsu will consider compensating suppliers based on past business volumes and is working to assess the impact of the stoppage on its supplier network.
Daihatsu Halts Production Due to Safety Investigation
Daihatsu has halted shipments of all its vehicles after a safety investigation found issues involving 64 models, including almost two dozen sold under Toyota’s brand. The company will work with its main suppliers to address the fallout from the scandal and may also help smaller subcontractors that do not receive compensation to access support funds from the industry ministry.
Daihatsu Resumes Operations in Southeast Asia
Daihatsu’s overseas operations focus heavily on Southeast Asia. It has resumed production of Perodua brand cars at two joint venture plants it operates with Malaysian automaker Perodua after getting regulatory clearance. The company said it had resumed shipments from its subsidiary in Indonesia, PT Astra Daihatsu Motor.
The small car specialist holds a focus on safety and compliance, as seen in its prompt actions to address the recent safety concerns. The commitment to its suppliers portrays a strong partnership approach, ensuring a fair compensation process based on past business relationships. Additionally, the company’s initiatives to support smaller subcontractors reflect a broader, community-driven business strategy.
Daihatsu’s international operations demonstrate its deep commitment to its global partners and customers. Resuming production in Southeast Asia indicates its robust determination to maintain a strong presence in the region despite challenges faced in its home country. This embodies a message of resilience and adaptability characteristic of a leading global automotive company.
Overall, Daihatsu’s conscientious response to the recent safety concerns demonstrates a commitment to quality and accountability, extending beyond its domestic operations. Their quick resolution and transparent communication reflect a dedication to customer safety and trust. This sets a standard for corporate responsibility, reinforcing Daihatsu’s position as an ethical and dependable player in the automotive industry.
