In the aftermath of the Daihatsu scandal, the company has said that it will compensate its domestic suppliers due to the output suspensions.

Reuters reports, that some 423 domestic suppliers will receive compensation from Daihatsu, as plants lay idle due to the supply halt that affects 64 (currently produced, developed, or discontinued) models from Daihatsu, Toyota and Perodua.

According to the report, “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 (Japan) industry ministry.”

Also read: Perodua on Daihatsu's delivery suspension: Irregularities found but cars still meet regulations, to work with Malaysian authorities

Also read: Daihatsu scandal: UMW Toyota to work with Malaysian authorities to ensure adherence to regulations

The company will also consider compensating certain suppliers based on past business volumes and is currently assessing the impact of the supply stoppages across its huge supply chain. 

Following the events of April (door lining irregularity) and May (side collision test irregularity), the latest scandal involving yet more compliance and reporting irregularities will see Daihatsu halt production in Japan until the end of January 2024.

Also read: Shipment of Perodua and Toyota cars in Malaysia to be suspended following latest Daihatsu safety test irregularity fiasco