The Competition Tribunal has handed WesBank, Toyota Financial Services (TFS) South Africa, Toyota Motor Corporation, TFS UK and Toyota South Africa Motors a R30-million administrative penalty related to their behaviour regarding the financing of new vehicles.

In terms of the settlement agreement, the five respondents will pay the penalty without admission of liability.

The settlement follows a complaint against the respondents 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.

According to a statement by the Competition Commission, it was alleged that in terms of the WesBank/Toyota joint venture (JV) agreement, WesBank was restrained from offering vehicle finance to customers seeking to purchase cars and trucks at authorised Toyota dealerships.

Instead, all vehicle finance applications made directly to WesBank by customers wishing to purchase vehicles were referred to the joint venture for financing.

The vehicles involved were new Toyota, Lexus and Hino vehicles, as well as any used vehicles sold through Toyota dealerships.

As part of the settlement agreement, the respondents will now remove restrictions that prevented WesBank itself from financing motor vehicles purchased from authorised Toyota dealerships.

“The removal of the restrictions that prevented WesBank from financing vehicles will provide customers with a wider choice when selecting vehicle financiers to finance vehicles purchased from authorised Toyota dealerships,” comments Competition Commission commissioner Doris Tshepe.

WesBank says it welcomes the fact that the matter has now finally been resolved.

“There has been no finding of contravening the Competition Act against WesBank.

“The settlement agreement amount of R30-million will be carried by the five respondents.”

As part of the agreement, WesBank has agreed to make certain changes to the execution of its JV agreement with TFS, adds the asset finance group.

“It should be noted that the JV agreement between TFS and WesBank remains in place.

“WesBank will continue not to compete on the dealer floor, with TFS, in line with the JV agreement.”

However, notes the company, “should customers wish to come directly to WesBank, or use one of WesBank’s digital channels, they will be accommodated in line with the agreement with the Competition Commission”.