Toyota Unit Told to Redress Subcontract Law Breaches

Tokyo, July 5 (Jiji Press)--Japan's Fair Trade Commission on Friday told special-purpose vehicle maker Toyota Customizing & Development Co. to redress subcontract law violations.

The unit of Toyota Motor Corp. made 49 subcontractors store a total of 664 tools to make vehicle parts, including metal molds for bumpers, free of charge since as late as July 2022, even though it had not placed orders involving the use of such tools for a long time, the FTC said. Of them, 108 were discarded as requested by some subcontractors.

The antitrust watchdog told Toyota Customizing to make payments equivalent to storage fees and take measures to prevent recurrence. The company is in talks with affected subcontractors to make the payments.

Toyota Customizing also unjustly returned 2,604 units of products to 65 subcontractors between July 2022 and March this year, claiming that they were defective and needed to be checked although it did not conduct quality checks when they were delivered.

The subcontractors accepted the returns for fear of losing contracts with Toyota Customizing, the FTC said.

[Copyright The Jiji Press, Ltd.]

Jiji Press