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Toyota subsidiary will provide compensation to 423 suppliers affected by the fraud scandal.

2024-05-30 Update From: AutoBeta NAV: AutoBeta > News >


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A spokesman for Toyota subsidiary Daihatsu said it would provide compensation to 423 domestic suppliers with direct business relations as the company's Japanese plant continues to stop production because of a safety scandal, the Financial Associated Press reported. Dafa Motor is currently negotiating with suppliers on the amount of compensation.

It is understood that from December 25, Dafa Motor's three complete vehicle factories in Japan have stopped work one after another, and the headquarters factory will stop work on the 26th. Daihatsu's domestic factories in Japan will all be shut down until the end of next month, the spokesman said. It is not clear when the company will resume production, but it is expected to be at least until the end of next month. Dafa has four vehicle factories in Japan's domestic market, with a cumulative annual production of more than 920000 vehicles in 2022, which means an one-month shutdown will reduce production by about 70, 000 vehicles, according to the Japan Broadcasting Association Television.

On December 20th, Daihatsu released a 162-page third-party investigation report. According to the investigation, in addition to the fake door accessories in April and the rod side collision test in May, 174 cases of fraud were found in 25 new test items, and 64 models and 3 engines were confirmed to be fraudulent, including those that have been discontinued. The survey also affected Toyota Motor Company (hereinafter referred to as "Toyota"), Mazda Motor Company (hereinafter referred to as "Mazda") and Subaru Motor Company (hereinafter referred to as "Subaru"). According to the results of the investigation, Dafa Motor decided to suspend shipments of all Dafa developed models currently produced in Japan and overseas, and Toyota also decided to suspend shipments of these models.

Then, on the 21st, Japan's Ministry of Land and Transport carried out an incoming inspection on Dafa. According to the Asahi Shimbun, most of the models currently produced by Dafa Motors have the same problem after investigation by a third-party committee.

As early as April this year, Dafa admitted that four models developed in overseas markets (Toyota Yaris Ativ, Perodua Axia, Toyota Agya and an undisclosed product) were fraudulent in crash tests. The model was mainly sold to international markets such as Thailand, Mexico, Ecuador and the Middle East, with a total of 88123 sold.

Daihatsu, founded in 1907 as a subsidiary of Toyota, accounts for about 4% of Toyota's global sales, according to public data.

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