The Japanese competition authority will issue a warning to a Toyota subsidiary

Tokyo, June 30 (SocialNews.XYZ) Japan’s antitrust watchdog plans to issue a warning to a subsidiary of Toyota Motor Corp. after finding that it forced subcontractors to store molds for making car parts without paying for them, local media reported on Sunday.

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 owns 90.5 percent. shares, admitted to violating 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.

Source: IANS

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Gopi Adusumilli is a programmer. He is the editor of SocialNews.XYZ and the president of AGK Fire Inc.

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