According to the Nikkei Shimbun, Daihatsu Motor, a subsidiary of Toyota Motor, has decided to negotiate with suppliers to compensate for the revenue losses suffered due to their suspension of shipments.

　　Daihatsu Motor is the manufacturer of Japan's most popular light micro vehicles (also known as light vehicles or Kei Cars). The company plans to suspend production at its domestic factory in Japan before December 26th, and it is currently unclear when normal operations will resume.

　　Image source: Dafa Automobile

　　At an online meeting on December 20th, Dafa Motors outlined compensation plans to parts suppliers and other partners in the supply chain who have direct business relationships with them. This plan includes continuing to purchase parts already produced for Dafa Motors and providing economic compensation for income losses caused by production suspension.

　　Dafa Automobile has direct business relationships with 423 companies, which are considered as first tier suppliers. At present, Dafa Automobile is in negotiations with suppliers regarding the compensation amount. In addition, Dafa Motors will also consider supporting secondary and tertiary suppliers that heavily rely on the company's sales. A representative from Dafa Motors stated that the company is willing to "negotiate with these partners as much as possible".

　　Daihatsu Motors has factories in Osaka, Kyoto, Shiga, and Oita Prefecture. Starting from December 20th, the company has stopped shipping from these factories, but will still accept parts from suppliers. In some factories, workers are still assembling vehicles in the production process. Dafa Motors stated that all of its domestic factories are about to shut down, but the company has not yet decided when to stop overseas production.