Daihatsu scandal weighs on Japan's smaller suppliers amid EV shift

TOKYO -- The safety scandal at Daihatsu Motor, a subsidiary of Toyota Motor, has left thousands of suppliers in the lurch, raising questions about how the Japanese auto industry will restructure its traditional supply chain at a time when moves towards electric vehicles are transforming the car industry.

Yoji Kawanaka, 75, says the unfolding scandal at Daihatsu is like "jumping out of the frying pan into the fire" as the company he founded, which supplies clients in the auto industry, scrambles to stay afloat.