Japan’s antitrust watchdog issues warning to Toyota subsidiary – Xinhua

TOKYO, July 1 (Xinhua) — Japan’s antitrust watchdog plans to issue a warning to a subsidiary of Toyota Motor Corp. after discovering that it forces subcontractors to store molds for auto parts at no cost, local media reported Sunday.

Toyota Customizing & Development Co., which makes car parts, ambulances and racing cars, allegedly forced about 50 suppliers to retain more than 650 molds and inspection jigs for parts used in its previous vehicles, even though 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 90.5% of the shares 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.

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