Toyota Customizing & Development (TCD), a unit of the automaker, has forced about 50 subcontractors to store molds used for manufacturing automobile parts free of charge, in violation of the subcontract law, people familiar with the matter said Sunday.
The Fair Trade Commission will shortly recommend that TCD take steps to prevent a recurrence of similar misconduct, the people said.
The TCD's actions, which started at least two years ago, cost these subcontractors tens of millions of yen, the people said. The subcontractors are believed to have been unable to refuse TCD's request out of concern that they would lose contracts with the company.
TCD intends to admit violating the law and pay an amount equivalent to storage fees to the subcontractors, the people said.
The company also unlawfully returned car body parts to over 60 subcontractors, resulting in damages exceeding ¥50 million.
TCD, founded in April 2018 and 90.5% owned by Toyota, develops vehicles on behalf of the parent firm while also developing and producing motorsports vehicles, according to its website.