Toyota Subsidiary Violated Japan's Law Protecting Subcontractors: Report
Portfolio Pulse from Shivani Kumaresan
The Japan Fair Trade Commission found that Toyota Motor Corp’s subsidiary, Toyota Customizing & Development Co. (TCD), violated subcontractor protection laws by not compensating suppliers for storage fees and forcing them to accept returns on defective products without proper inspection. TCD has since reimbursed the suppliers. The FTC also cautioned Nissan Motor Co. for similar practices. Toyota stock has gained over 27% in the last 12 months, and investors can gain exposure through ETFs like APIE and AVIV.
July 05, 2024 | 4:47 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Nissan was cautioned by the FTC for illegally lowering payments to suppliers, which could lead to increased scrutiny and potential regulatory actions.
The FTC's caution to Nissan for lowering supplier payments could lead to increased regulatory scrutiny and potential actions, negatively impacting the company's stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Toyota's subsidiary TCD violated subcontractor protection laws, leading to reimbursement of suppliers. This could impact Toyota's reputation and stock in the short term.
The violation of subcontractor protection laws by TCD, a subsidiary of Toyota, could negatively impact Toyota's reputation and investor sentiment, leading to a potential short-term decline in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
ActivePassive International Equity ETF, which includes Toyota, might see minor fluctuations due to the legal issues faced by Toyota's subsidiary.
As an ETF that includes Toyota, APIE might experience minor fluctuations due to the legal issues faced by Toyota's subsidiary, but the overall impact is expected to be limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Avantis International Large Cap Value ETF, which includes Toyota, might see minor fluctuations due to the legal issues faced by Toyota's subsidiary.
As an ETF that includes Toyota, AVIV might experience minor fluctuations due to the legal issues faced by Toyota's subsidiary, but the overall impact is expected to be limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50