Japan's Financial Services Agency has decided to issue business improvement orders to car dealer Toyota Mobility Tokyo and used-car dealer Goodspeed, it was learned Tuesday.
The Toyota Motor subsidiary 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 claim scandal at the used-car dealer previously known as Bigmotor.
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 with car body painting costs was found in 2020. An audit by the transport ministry in 2021 detected fraudulent statutory vehicle inspections by the company.
Goodspeed announced in 2023 that it had made excessive vehicle insurance claims and engaged in inappropriate accounting practices.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.