Wesbank and Toyota Financial Services will pay a R30 million administrative penalty settlement to The Competition Commission of South Africa.
The Competition Commission welcomes the Competition Tribunal’s confirmation of the settlement agreement concluded between the Commission and WesBank, a division of FirstRand Bank (“WesBank”), Toyota Financial Services South Africa (“TFSSA”), Toyota Motor Corporation (“TMC”), Toyota Financial Services UK PLC (“TFSUK”) and Toyota South Africa Motors (Pty) Ltd (“TSA”) (“the Respondents”). In terms of the settlement agreement, the Respondents will pay an administrative penalty of R30 000 000 (R30 million) without admission of liability.
This settlement agreement followed the Commission’s referral on 01 February 2022 and subsequent prosecution of a complaint against the Respondents before the Tribunal for allegedly dividing the market for wholesale and retail financing of Toyota vehicles by allocating suppliers and/ or customers, in possible contravention of section 4(1)(b)(ii) of the Competition Act 89 of 1998, as amended.
It was alleged that in terms of the Respondents’ joint venture agreement, WesBank was restrained from offering motor vehicle finance to customers seeking to purchase vehicles at authorised Toyota dealerships. All vehicle finance applications made directly to WesBank by customers seeking to purchase vehicles from authorised Toyota dealerships were referred to the joint venture, TFSSA, for finance. The vehicles involved were new Toyota, Lexus and Hino vehicles and any used vehicles sold through the authorised Toyota dealerships.
As part of the settlement agreement, the Respondents will remove restrictions that prevented Wesbank from financing motor vehicles purchased from authorised Toyota dealerships.
“The removal of the restrictions that prevented Wesbank from financing vehicles will give customers a wider choice when selecting vehicle financiers to finance vehicles purchased from authorised Toyota dealerships,” says Commissioner Doris Tshepe.
The confirmation of this settlement agreement by the Tribunal concludes all proceedings between the Commission and the Respondents in relation to this matter.
BAIC South Africa has confirmed that the all-new BAIC B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. This step, says BAIC, marks another significant step in the brand’s long-term commitment to the South African market.
Changan South Africa has announced its full vehicle range and the prices of new entrants into the local market.
Messe Frankfurt expands its roster of shows with a Festival of Motoring in Australia and industry shows in Jakarta and Azerbaijan.
Advertisement
Advertisement
I always do like seeing other people dance in their cars. It's one of the things that makes me happy.
Ariel Gore
BAIC South Africa has confirmed that the all-new BAIC B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. This step, says BAIC, marks another significant step in the brand’s long-term commitment to the South African market.
Messe Frankfurt expands its roster of shows with a Festival of Motoring in Australia and industry shows in Jakarta and Azerbaijan.
In South Africa, a car is more than a convenience, it’s a lifeline. For many, it’s how they get to work, take children to school, or keep small businesses running, especially when public transport often falls short.
