• Jun 17, 2006
The Japanese island of Kyushu has become known as "Car Island" due to the influx of not only assembly plants, but also plants run by various car parts suppliers of the Japanese domestic manufacturers. In fact, 30 percent of all suppliers shacked up on Kyushu are affiliated with Toyota.

Kyushu happens to be close to the southeastern part of South Korea where Hyundai and other automakers manufacture about 1.65 million cars per years. Hyundai is beginning to use Toyota-affiliated parts suppliers from the Kyushu region, which the Japanese juggernaut sees as a growing threat from an aggressive competitor.

Toyota gets particularly miffed when suppliers sell parts that it helped jointly develop to other companies like Hyundai. In the past it let the transgression slide for competitors such as Honda and Mitsubishi because the practice resulted in lower prices on parts for Toyota itself. Apparently Toyota's would be willing to give up the discount if it means making life a littler harder for Hyundai.

Toyota no longer sees General Motors as its biggest competition, but rather the South Korean company that could. As such, Toyota is considering asking its parts suppliers not to sell to Hyundai and may resort to raising its stake in these companies in order to force them to do so.

Thanks PassingAlong for the tip!

[Source: JinBN]


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  • 33 Comments
      • 8 Years Ago
      In the United States we call this collusion, price fixing and illegal. And if your a criminal they send you to jail under there Rico Act. But if you are importing to the States we ignore it. If we export doing this the WTO enacts sanctions. This Is what DuPont did with TNT in the early 1900's and we broke them up. We also did it with GM when they owned the majority of DuPont. If we keep doing nothing then we will be doing nothing.That why we call it illegal.
      • 8 Years Ago
      "GM was smart in buying daewoo."

      actually, daewoo is pretty dead in most Asia.

      Hyundai is not as big as it is in North America. Kia is mildly competitive, due to it's dirt-cheap price.
      • 8 Years Ago
      You know, this sounds like a case of the child with the most toys getting angry when it comes to sharing. It doesn't matter that they infringe on most of the patent laws, or as one of the other bloggers mentioned, create a restraint of trade. As long as they are dominant (and destructive) they are happy little campers. I hope this becomes common knowledge to the industries of the world and they see how the great Toyota wants to make themselves #1.
      • 8 Years Ago
      #15 sam,
      Your ignorance comes shining through.
      • 8 Years Ago
      Japan is a free market for Japanese products. I could not wish Toyota enough bad luck, they are nothing more than a bunch of leeches. They bombarded the US in the seventies and eighties with auto's sold below cost to undermine the American auto companies, now they are after Hyundai. They have also tried to buy up all the hybrid parts manufactured in the US to keep other companies from buying them. They have even gone after suppliers of Honda in an effort to slow them down.

      They are on a crusade to control the world autombile market, and don't count on the low-down elected officials in DC for any help. They are too damn busy filling their pockets, bashing gays, stopping embyronic research and trying to christianize the world to be bothered. If the voters of this country don't get their heads out of their asses, we are on our way to being a third world country.
      • 8 Years Ago
      Key point emphasized since some commenters seem to have overlooked it:

      Toyota gets particularly miffed when suppliers sell parts THAT IT HELPED JOINTLY DEVELOP to other companies like Hyundai.
      • 8 Years Ago
      Its not like Toyota or Honda force you to buy their vehicles. Go ahead and stop importing Japanese cars. Then we all get to drive out Ford 500's and Buick Lucernes. YAY!!!!
      • 8 Years Ago
      AR => you're a reverse red-neck, probably ties to foreign nationals, i'd guess. It's the country's business practices we're complaining about, not Toyota or GM. It's the Japanese not playing fair in world trade, again. They have huge barriers to the U.S. marketplace. We can't even sell a grain of rice in their country, let alone auto parts. Japan doesn't practice fair trade, but they will take advantage of a barrier free country like the U.S. Are they aggressive and undermining, Yes! Should the U.S. be the same way, Yes! There should be no foreign made parts for sale in the U.S.
      • 8 Years Ago
      Historically, Japan hasn't looked kindly on Korea. Why now would they change? Even if it is a deep-rooted racial hatred that drives this, I don't see why it's wrong for a company to protect what they've developed jointly. Should Toyota not have any say in what its spent millions of dollars creating? If Hyuandi wants something, let them develop it themselves is my take.
      • 8 Years Ago
      You guys are a bunch of idiots. If this was GM in Toyota's place and Toyota in Hyundai's position, you'd all be rah-rah and cheering GM on. Guess what? Toyota is a business and will do whatever it takes to protect its position vis-a-vis the competition.
      • 8 Years Ago
      At this point Toyota would have to be found guilty of making their cars explode on purpose for the sole intent of killing Americans before sales of the Camry and many of their other vehicles would decline in America. So this will be meaningless just like the allegations of stealing hybrid technology and talk that their quality is going down.

      The only information pertaining to bad things happening in the auto industry are from Nader, Moore and their wanabes. For some reason it is only important to these guys to speak loudly when GM or Ford screws up or does something similar to this Toyota incident.

      How much do you want to bet that this incident will not sway Friedman from thinking Toyota should own GM and Toyota is so much better for our country? Toyota is no different than GM, thinking Toyota is America's sweetheart like so many do, is dangerous for America.
      • 8 Years Ago
      Why should this even make news. American car manufactures as well as European Manufactures do the same. Toyota infact is a share holder in this firm and without doubt don't care to share their investment with their competitors. Toyota hasn't sold out to American corporations and that's the only reason it's mentioned.
      Perhaps some of the AM posters need reminding, that it isn't only Americans who read their posts.
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