Daihatsu Offers Compensation To Suppliers Amid Safety Test Scandal-Driven Production Halt
Portfolio Pulse from Anan Ashraf
Daihatsu, a subsidiary of Toyota Motor Corp (NYSE:TM), is compensating its 423 domestic suppliers in Japan due to a production halt following a safety test scandal. The compensation is based on past business volumes. The production stoppage is a result of safety test manipulations found in 64 models, some under the Toyota brand. Daihatsu is also considering support for smaller subcontractors. Production of Perodua brand cars in Malaysia and shipments from PT Astra Daihatsu Motor in Indonesia have resumed.

December 26, 2023 | 11:50 am
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Toyota Motor Corp's subsidiary Daihatsu is compensating suppliers due to a production halt from a safety test scandal, affecting 64 models including some Toyota-branded. Production in Malaysia and Indonesia has resumed.
The news of Daihatsu's production halt and the safety test scandal is likely to negatively impact Toyota's stock in the short term due to the association with the scandal and potential financial implications of the compensation to suppliers. However, the resumption of production in Malaysia and Indonesia may mitigate some of the negative impact.
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IMPORTANCE 70
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