Japan FSA to Issue Biz Improvement Order to Toyota Dealer

Tokyo, Jan. 21 (Jiji Press)--Japan Financial Services Agency decided to issue business improvement orders to car dealer Toyota Mobility Tokyo Inc. and used car dealer Goodspeed Co., it was learned Tuesday.

The subsidiary of Toyota Motor Corp. and Nagoya-based Goodspeed are believed to have committed illegal practices, such as discounting vehicles in exchange for buying specific insurance products.

The FSA began fact-finding investigations into vehicle sales companies also operating as insurance agencies, after the revelation of a fraudulent insurance claim scandal at the used car dealer previously called Bigmotor Co.

The financial industry watchdog visited Toyota Mobility Tokyo and Goodspeed in autumn 2024 for on-site inspections.

At Toyota Mobility Tokyo, a practice of padding bills of car body painting costs was found in 2020. An audit by the transport ministry in 2021 detected fraudulent statutory vehicle inspections by the company.

[Copyright The Jiji Press, Ltd.]