How are they building these links?

DnewGuy

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One of my competitor website has thousands of links from websites that look spammy.
1bbo3AmGL9-Z

From page http://mcpartsinstock.com/barometry61986.html
Link.png
They are linking to a dead subdomain of their own website created with the name of the linking site
http://mcpartsinstock.comcorporateeventideas.COMPETITOR.comLink2.png

They have thousands of these links, so must be a tool based linking & its actually working.
My question is how are they doing it & why is google not penalising these spammy links.
 
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