Toyota’s subsidiary will be issued a warning by Japan’s antitrust watchdog

Japan’s antitrust regulator is set to issue a warning to a Toyota Motor Corp. subsidiary following findings that it compelled subcontractors to bear the costs of storing moulds for auto parts, local media reported.

Toyota Customising & Development Co., known for manufacturing auto parts, ambulances, and racing cars, allegedly required approximately 50 suppliers to retain more than 650 moulds and inspection instruments for parts used in its previous vehicles, despite having no plans for new orders, as per Kyodo News, citing a knowledgeable source.

The subsidiary, majority-owned by Toyota with a 90.5% stake, has acknowledged breaching subcontracting regulations, the report stated.

Also, the Japan Fair Trade Commission suspects that the Toyota group company unjustifiably returned parts worth over 50 million yen (about USD 310,000) to more than 60 suppliers, according to Xinhua news agency.

The commission intends to caution the subsidiary to implement preventive measures against future occurrences, the report added.