Safety scandal-hit Daihatsu widens list of compensation-entitled entities

Daihatsu Motor Co. said Thursday it expanded its list of suppliers eligible to be compensated for loss of sales stemming from its production halt caused by the discovery of rigged safety testing.

In addition to 423 direct suppliers, the Toyota Motor Corp. small car unit said it will also compensate some 4,000 tier-2 and tier-3 suppliers and 1,000 other companies that do business with Daihatsu.

Toyota will provide financial support for the compensation, while Daihatsu is also in discussions with financial institutions to raise funds, the company said.

The small-car specialist had stopped operations at all plants in Japan by Tuesday after a third-party panel found most of its models had safety tests falsified. The company has yet to decide on when to restart domestic production.

The automaker temporarily suspended shipments in Indonesia and Malaysia earlier in the month but resumed deliveries a few days later. The compensation program does not cover foreign suppliers, a Daihatsu spokesman said.

According to credit research firm Teikoku Databank Ltd., there are over 8,000 companies in Japan that directly or indirectly supply products or services to Daihatsu, generating a combined annual sales of about 2.2 trillion yen ($16 billion).

© Kyodo News