© Reuters. Daihatsu Motor Co.’s Mira e:S (entrance) and different Daihatsu automobiles are displayed on the firm’s dealership in Tokyo November 11, 2014. REUTERS/Yuya Shino/Information
TOKYO (Reuters) – Toyota Motor (NYSE:)’s small-car unit Daihatsu Motor mentioned on Thursday it could compensate lower-tier contractors in its provide chain to cushion the blow from an indefinite manufacturing stoppage after revelations final week of a wider security scandal.
Daihatsu, which had already introduced plans to compensate 423 direct suppliers, has mentioned it could hold manufacturing halted in Japan a minimum of till the tip of January whereas authorities examine it for safety-inspection irregularities.
Manufacturing was stopped in any respect of its factories in Japan this week.
Daihatsu says it has greater than 4,000 firms in its provide chain which might be linked to its manufacturing and greater than 1,000 different corporations are related in different methods.
A Daihatsu government on Thursday declined to offer an estimate on how a lot the greater than one-month manufacturing stoppage and provider compensation would value the corporate.
“We absolutely perceive that suspending the corporate’s enterprise and offering compensation will value a substantial sum of money,” Keita Ide, an government supervisor on the firm advised reporters.
“Nonetheless, it’s tough to precisely calculate the affect at this level as it’s unclear how lengthy this era will final.”
Daihatsu has held two conferences, every attended by greater than 300 direct contractors, over the scandal’s fallout to this point.
Toyota’s chief communications officer Jun Nagata mentioned the corporate would absolutely assist its wholly owned unit, together with with loans already ready for seller and provider compensation if Daihatsu requested such assist.
“We’ll absolutely again them up within the occasion of a scarcity of funds,” Nagata mentioned.
Daihatsu needs to maintain open varied choices for coping with the price of the stoppage and the broader fallout of the scandal, together with potential financial institution loans, mentioned Ide from the corporate’s company administration group.
Daihatsu is already consulting with monetary establishments, he mentioned.
