The famous Japanese brand, Daihatsu, suspended the production of its domestic factory when its subsidiary, Toyota, struggled with a safety test scandal involving 64 car models over the past three decades.
The company pleaded guilty to falsifying crash tests on four models produced in Thailand and Malaysia from 2022 to this year. They also admitted that mistakes were made throughout the entire production process with false data discovered in an internal investigation dating back to 1989.
A spokesperson for the company issued a statement to stop all production at its factory until the end of next month. They will also consider compensating suppliers based on past business volumes and work to assess the impact of layoffs on their supplier network.
He further said that the company will work with its main suppliers to deal with the fallout from the scandal and may also help small subcontractors who do not receive compensation to access support funds from the industry ministry.
It continues to be a hot topic in the local media because Daihatsu's operations are largely concentrated in Southeast Asia.
They have resumed the production of Perodua brand cars in two joint venture factories operated with the Malaysian car maker, Perusahaan Otomobil Kedua Sdn. Bhd. (PERODUA) after obtaining regulatory approval.
Last week, the scandal-ridden company resumed deliveries from its Indonesian subsidiary, PT Astra Daihatsu Motor.
