Daihatsu to halt all production in Japan until end-Jan 2024 – Perodua production reported to have resumed

An update on the Daihatsu safety testing irregularities issue that came back to light last week. Having first announced last week it was suspending shipments of all vehicles it developed that are currently being produced in Japan as well as overseas markets. The issue arose after a safety investigation carried out by an independent panel found issues involving 64 models, including a number sold under the Toyota brand.

That decision to halt all shipments was also carried out in Indonesia and Malaysia, but developments have come about on those fronts. Over the weekend, it was reported vehicle shipments had resumed in Indonesia after the company said Indonesian authorities confirmed the safety of the cars and greenlit resumption of shipments.

Now, there’s also an update about Malaysia, involving Perodua. Reuters reported yesterday that Daihatsu said that production of Perodua vehicles in the Malaysia have resumed after getting regulatory clearance, while Kyodo News also reported the same, although it has not been confirmed if shipments have also resumed.

There has been no word officially about this from the local perspective as yet, with the last statement from Perodua last week being that it was doing a detailed assessment and discussing with authorities to resolve the matter, but we can expect an update on it in the near future.

Daihatsu to halt all production in Japan until end-Jan 2024 – Perodua production reported to have resumed

As for Japan, it’s set to be a protracted affair, because the automaker has announced that it will keep its domestic production suspended until at least the end of January. The move is not only set to significantly affect it but also its components and parts suppliers, with around 8,000 firms in Japan directly or indirectly supplying products or services to the automaker being impacted by the halt, Kyodo News reports.

According to sources familiar with the matter, the automaker – having already stopped parts orders – has begun compensation negotiations with its suppliers, and it is also in discussions with its labour union over employees’ wages during the production halt.

Meanwhile, Reuters reports that the automaker will compensate 423 domestic suppliers with which it has direct business relations. A spokesperson told the news agency that the company will work with its main suppliers to address the fallout and may also help smaller subcontractors that do not receive compensation to access support funds from the industry ministry.

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Tags: Daihatsu Safety Scandal 2023

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