Daihatsu, as a subsidiary of Toyota Motor Corporation (TMC), has the potential to experience major losses exceeding $700 million or almost IDR 11 trillion after being caught in a safety test scandal.
As a result of the safety test scandal, Daihatsu decided to stop production activities at its four factories in Japan.
This decision is expected to prevent the Japanese company from avoiding losses.
The reason is that until now Daihatsu has not made a decision on how long factory activities will be stopped.
Quoting Nikkei Asia, Thursday (28/12/2023), Daihatsu’s cessation of production in Japan is expected to have a significant financial impact.
These impacts include various aspects such as compensation to suppliers and loss of revenue. Furthermore, the scandal has prompted a vehicle recall and a complete halt in deliveries of all Daihatsu vehicles.
While the investigation is ongoing, the overall financial and operational impact remains unknown. The situation is still changing and uncertain, making Daihatsu and its stakeholders worried and anticipating the impact of the safety test scandal.
Previously, Daihatsu Motor announced that it had stopped all vehicle deliveries both domestically and abroad.
This distribution cessation is the aftermath of the results of the safety test scandal investigation. The company found 174 violations, including misrepresentation of test results and vehicle vandalism.
From this case, Daihatsu announced that 64 models and three engines were affected in the global market. Some are currently on sale, some have been discontinued. Included are 22 models plus one Toyota branded engine.