TOKYO: Toyota Customizing & Development Co., a unit of Toyota Motor Corp., 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 act, which started at least two years ago, cost these subcontractors tens of millions of yen, the people said. These 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 yen.

TCD, founded in April 2018 and 90.5 percent owned by Toyota, develops vehicles on behalf of the parent while developing and producing motor sports vehicles, according to its website.

JIJI Press