Daihatsu Halts Production Amid Safety Investigation on 64 Models


  • Automobile specialist, Daihatsu, has suspended production in Japan until next month’s end.
  • The company is looking at ways to compensate its suppliers for the halt, based on previous business volumes.
  • Daihatsu halted all vehicle shipments following safety concerns involving 64 models which also include Toyota brand.
  • The company has restarted making Perodua cars in partnership with Malaysian auto giant Perodua. It has also resumed shipping from its Indonesian arm, PT Astra Daihatsu Motor.

Production Halted and Supplier Compensation

The automobile specialist Daihatsu has suspended its production operations in Japan until the conclusion of the next month, disclosed the company’s representative.

Moreover, the company is contemplating compensation for its suppliers based on their historical business volumes. A detailed evaluation is going on to gauge the cold stop’s impact on its vast network of suppliers.

Production Suspension and Safety Concerns

As revealed last week by Daihatsu, the halt of vehicle shipments was initiated due to safety issues discovered in 64 models, some of which are even sold under the Toyota brand.

Support and Resumption of operations

Efforts are underway to collaborate with primary suppliers to confront the aftermath of the scandal, along with assisting small subcontractors lacking compensation. They are supported via funds from the industry assurance program.

Daihatsu’s international operations revolve majorly around the Southeast Asia region. The company announced the resumption of production for Perodua brand cars in two joint venture plants managed with Malaysian automobile manufacturer Perodua, following the regulatory nod.

Back to operations

The car maker, now a wholly-owned subsidiary of Toyota, resumed its shipments from its Indonesian branch, PT Astra Daihatsu Motor, on last Friday.

This turn of events can potentially impact the stock trading of automobile-based shares and Forex, keeping in mind Toyota’s association with the manufacturer and the international markets where Daihatsu operates.

PIP Penguin