A longtime Toyota supplier is accusing the car maker of using stolen technology —fallout from higher prices and rising tensions in the global supply chain
with Baoshan whether the Chinese company’s materials infringed on any patents and received written assurances that they didn’t. Toyota said Nippon Steel and Baoshan should have settled the matter between themselves.
Baoshan, also known as Baosteel, said it didn’t agree with Nippon Steel’s claim and would defend its interests in court. Baoshan said it had sought proof from Nippon Steel and said the Japanese company refused to cooperate. The lawsuit is notable in that it was even filed. Disputes between Japanese car makers like Toyota and their suppliers rarely spill into the open. For many decades, Japanese manufacturers have offered steady business in return for loyalty from companies like Nippon Steel.
Such expressions of dissatisfaction are unusual in Japan, said Tanh Ha Pham, a Tokyo-based steel analyst for Jefferies. “Until now, Nippon Steel was a very Japanese company, respectful of these relationships with customers, and Toyota was the emperor,” Mr. Pham said. “But Nippon Steel has a new sheriff in town, the president Hashimoto. He’s picking a fight with Toyota.”