Toyota Motor's small-car unit Daihatsu Motor said on Thursday that it would compensate lower-tier contractors in its supply chain to cushion the blow from an indefinite production stoppage after revelations last week of a widening safety scandal.

Daihatsu, which had already announced plans to compensate 423 direct suppliers, has said it would keep production halted in Japan at least until the end of January while authorities investigate it for safety-inspection irregularities.

Production was stopped at all of its factories in Japan this week.