Toyota Customizing & Development (TCD), a unit of the automaker, has forced about 50 subcontractors to store molds used to produce auto parts for free, in violation of the subcontracting law, people familiar with the matter said Sunday.
The Fair Trade Commission will soon recommend that TCD take action to prevent a recurrence of similar misconduct, the sources said.
The TCD’s actions, which began at least two years ago, have cost these subcontractors tens of millions of yen, the sources said. The subcontractors were reportedly unable to refuse TCD’s request for fear of losing contracts with the company.
TCD plans to come clean and pay an amount equal to the storage costs to the subcontractors, the sources said.
The company also unlawfully returned body parts to more than 60 subcontractors, causing damages to exceed ¥50 million.
TCD, founded in April 2018 and 90.5% owned by Toyota, develops vehicles on behalf of its parent company and also develops and manufactures motorsport vehicles, according to its website.
