Latest news for Toyota Tsusho (OTC:TYHOF) Stock

Toyota Tsusho Corporation is a trading company. The company has six major divisions. The Metal division processes and distributes various steel products, and others. Global Parts and Logistics division is engaged in warehousing and logistics services and others. Automobile division is engaged in automobile parts selling, used vehicles and parts exporting/importing, and others. Machinery, Energy and Plant Project division provides mechanical equipment, various industrial machineries, petroleum products and others. Chemical and Electronics division provides semiconductors, electronic devices, software, chemicals, resins and others. Food and Customer Services division manufactures and sells apparel, food and others. Asian market accounts for majority of the company's sales.

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A subsidiary of Toyota was found violating Japan&#39;s subcontractor protection laws, according to the Japan Fair Trade Commission (FTC). Toyota Customizing &amp; Development Co. (TCD) failed to compensate suppliers for storage fees of metal die casts and other items.

Toyota Subsidiary Violated Japan&#39;s Law Protecting Subcontractors: Report

TOYOTA TSUSHO CORP ORD by Toyota Tsusho Corp.

Toyota Tsusho Corp

Toyota Tsusho

The Japan Fair Trade Commission (FTC) reportedly found that Toyota Motor Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) subsidiary, Toyota Customizing &amp; Development Co. (TCD), based in Yokohama, failed to compensate suppliers for storage fees of metal die casts and other items.



TCD violated the law by not paying storage fees to dozens of suppliers and forcing 65 suppliers to accept returns on products deemed defective without proper inspection, reported <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-05/toyota-unit-violated-subcontract-payment-law-says-japan-ftc?srnd=industries-consumer&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.



The total cost for these actions was around ¥54 million ($336,100). TCD reimbursed the suppliers last month and agreed to cover storage costs.



The Japanese government aims to ensure fair treatment of suppliers by large manufacturers to help boost wages and consumer spending.



Small companies face challenges from rising import costs and pressure to keep prices low, hindering economic growth. Authorities are addressing governance issues at Toyota following <a target="_blank" href="https://www.benzinga.com/news/24/07/39640788/toyota-says-it-has-not-found-any-further-wrongdoing-in-certification-applications-beyond-those-repor" rel="noreferrer noopener">previous safety certification scandals</a>.



Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39590828/insurers-to-sell-3-1b-in-honda-shares-in-wake-of-governance-push-report" rel="noreferrer noopener">Insurers To Sell $3.1B In Honda Shares In Wake Of Governance Push: Report</a>



The FTC also cautioned Nissan Motor Co. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSANY#OTC">NSANY</a>) for illegally lowering payments to suppliers, prompting scrutiny on the automobile industry to adopt preventative measures.



Metal die casts, commonly used in vehicle production, should have their storage costs covered by clients, as per a 2019 trade ministry report.



Founded in 2018, TCD manufactures and sells ambulances and specialized vehicles both domestically and internationally. Toyota holds a 90.5% stake in TCD, with the remaining shares owned by Toyota Tsusho Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TYHOF#OTC">TYHOF</a>).



Toyota stock has gained more than 27% in the last 12 months. Investors can gain exposure to the stock via ActivePassive International Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APIE#NYSE">APIE</a>) and Avantis International Large Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVIV#NYSE">AVIV</a>).



Price Action: TM shares are trading lower by 0.08% at $206.08 at last check Friday.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo by josefkubes on Shutterstock



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Friday, July 05, 2024

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