Toyota’s Daihatsu says lower-tier suppliers would also be compensated for suspended production

TOKYO (Reuters) – Toyota Motor’s small-car unit Daihatsu Motor said on Thursday it would compensate direct as well as lower-tier contractors in its supply chain to cushion the blow from an indefinite production stoppage after revelations last week of a wider safety scandal.

Daihatsu has said it would keep production halted in Japan at least until the end of January while authorities investigate it for safety-inspection irregularities. Teikoku Databank says its supply chain in Japan comprises some 8,300 companies.

Toyota’s chief communications officer Jun Nagata told reporters the company would fully support its wholly owned unit, including with loans already prepared for compensation.

(Reporting by Daniel Leussink; Editing by Chang-Ran Kim)