The Japanese competition authority will issue a warning to a 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 Customizing & Development Co, which makes auto parts, ambulances and race cars, allegedly forced about 50 suppliers to retain more than 650 molds and parts inspection devices used in its previous vehicles, even though it had no plans to place new orders, Kyodo reports. , 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 has returned spare parts worth more than 50 million yen (about 1.46 million ringgit) to more than 60 suppliers without giving a valid reason.

The report added that the Commission plans to warn the subsidiary to take action to prevent the problem from recurring. — Bernama