The production halt, which affected thousands of suppliers with total annual revenue of about $15 billion, prompted Daihatsu to begin negotiations for compensation. The company, which produces approximately 4,000 vehicles a day, stopped ordering parts, increasing the difficulties faced by its suppliers.

The safety testing scandal involves 64 Daihatsu models that were subjected to improper testing. The company is currently working with its union to resolve the issue of employee wages during the shutdown.

The crisis marks a critical juncture for Daihatsu; as Daihatsu deals with the consequences of safety testing failures, significantly impacting its operations and the wider vehicle supply chain.

Source: Ferra

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