Japan’s antitrust watchdog issues warning to Toyota subsidiary

Tokyo, June 30, 2024-

On Sunday, local media reported that Japan’s antitrust authority plans to issue a warning to Toyota Motor Corp.’s subsidiary. after discovering that it was forcing subcontractors to store car parts molds at no cost.

Toyota Customizing & Development Co., a company that makes auto parts, ambulances and race cars, allegedly forced about 50 suppliers to withhold more than 650 molds and inspection instruments for parts used in its previous vehicles, although it had no plans to place new orders, Kyodo News reported. citing a source familiar with the matter.

As we read in the report, the subsidiary, in which Toyota has a 90.5 percent stake, admitted to violating the subcontracting law.

Japan’s Fair Trade Commission also suspects that the Toyota group company returned parts worth more than 50 million yen (about $310,000) to more than 60 suppliers without just cause, Xinhua news agency reported.

According to the report, the Commission plans to warn the subsidiary to take action to prevent the problem from recurring. (Agency)