Japan’s antitrust watchdog warns Toyota subsidiary over unpaid storage costs

Japan’s antitrust watchdog plans to issue a warning to Toyota Customising & Development Co., a subsidiary of Toyota Motor Corp., for allegedly forcing subcontractors to store molds of car parts without covering the related costs, local media reported Sunday.

According to Kyodo News, the subsidiary, which produces auto parts, ambulances and racing cars, forced about 50 suppliers to retain more than 650 molds and inspection instruments. These were parts used in previous vehicle models, although no new orders were planned. The company, in which Toyota has a 90.5 percent stake, admitted violating subcontracting laws, the report said.

The situation is further complicated by the fact that the Japan Fair Trade Commission suspects that the Toyota subsidiary returned spare parts worth more than 50 million yen (about $310,000) to more than 60 suppliers without a valid reason, Xinhua news agency reported.

The Commission plans to issue a warning to Toyota Customizing & Development Co., urging it to implement measures to prevent such violations from recurring in the future.

The incident highlights ongoing scrutiny of corporate practices in Japan, particularly regarding the treatment of subcontractors and the enforcement of fair trade regulations. The Japan Fair Trade Commission’s actions reflect broader efforts to ensure that large corporations comply with domestic subcontracting laws and maintain fair business practices.

Related: Zeebiz