Japan’s antitrust watchdog issues warning to Toyota subsidiary

TOKYO, July 1 — 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 yesterday, according to Xinhua.

Toyota Customising & Development Co., a maker of auto parts, ambulances and racing cars, allegedly forced about 50 suppliers to retain 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.

The Japan Fair Trade Commission also suspects that the Toyota group company returned parts worth more than 50 million yen (about RM1.46 million) to more than 60 suppliers without just cause.

The commission plans to warn the subsidiary to take measures to prevent such an event from happening again, the report added. — Bernama