Production suspension due to vehicle model fraud, limited impact on suppliers = Minister of Economy, Trade and Industry

July 2, 2024 11:27 AM

Minister of Economy, Trade and Industry Saito Ken made it clear at the post-cabinet meeting on the 2nd that Toyota Motor Corporation (7203.T) and Mazda (7261.T) stopped partial production due to unauthorized certification of “type designation” required for mass production, and that “we are not considering cash flow support at this time.”
The Ministry of Economy, Trade, and Industry sent questionnaires from 6/10 to 28 to investigate the impact on supplier sales. Based on responses to the questionnaire, the Minister of Economy, Trade and Industry stated, “There are also initiatives such as alternative production, etc., and it has been confirmed that the impact is limited.”
I declined to comment on some reports that the Fair Trade Commission made recommendations to Toyota subsidiaries in violation of the Subcontract Act. On top of that, he stated that “in order to optimize transactions in the automobile industry, which has a multi-layered transaction structure, efforts throughout the supply chain are important,” and “I would like to work on optimizing transactions, such as strict execution of the Subcontract Law, in order to realize appropriate transaction practices.”