A Toyota subsidiary was found to have violated Japan’s law protecting subcontractors, amid a government push to promote better treatment of small companies that wield little bargaining power over their bigger clients.
Yokohama-based Toyota Customizing & Development (TCD) broke the law by having dozens of suppliers store metal die casts and other items without paying any storage fees, the Fair Trade Commission (FTC) announced in a statement Friday.
The FTC also said TCD forced 65 suppliers to accept returns on products, saying they’re defective, although it hadn’t actually inspected the items. The total costs came to around ¥54 million ($336,100), and TCD reimbursed its suppliers last month, FTC said, adding that the company will also pay back storage costs to those affected.
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