Daihatsu Motor Co., the small-car unit of Toyota Motor Corp., said Monday it will keep its domestic production suspended until at least the end of January after having halted all domestic shipments due to a safety testing scandal.
Daihatsu, which has been inspected by Japan's transport ministry, said it does not know when it can resume shipments or production. The company plans to stop production at all of its factories in Japan by Tuesday.
The suspension is a major blow to thousands of its suppliers. According to credit research firm Teikoku Databank Ltd., there are over 8,000 firms in Japan that directly or indirectly supply products or services to the automaker, generating combined annual sales of about 2.2 trillion yen ($15 billion).
Daihatsu has begun compensation negotiations with its suppliers, sources familiar with the matter said. The automaker, which produces about 4,000 cars per day, has already stopped parts orders, they said.
The automaker is also in discussions with its labor union over employees' wages during the production halt, according to the sources.
Daihatsu said last week that a total of 64 of its models were subjected to improper safety tests, expanding from the six it found in spring.
Following the revelation, the company said it decided to stop all shipments both in and outside Japan, though they have resumed in Indonesia and Malaysia after the countries' governments confirmed that Daihatsu cars sold there are safe to use.
The automaker said its vehicles currently in use do not pose immediate safety problems.
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