A Brewer car dealership is suing Toyota’s sales division, saying it is reimbursing just 1 cent for spare key fobs that are supposed to be sold with a new car.
Downeast Toyota filed a lawsuit Monday in Bangor District Court against Toyota Motor Sales, USA. It alleges Toyota is violating Maine law and depriving Downeast of profit. The Brewer-based dealership is asking for $793 to cover the fob issues, as well as compensation for attorney fees, the lawsuit said.
Downeast’s problem appears to be a symptom of a nationwide issue. A chip shortage started during COVID-19 and ripples are still felt today. Some manufacturers had partially constructed vehicles they were unable to ship because chips were missing, CNBC reported.
Toyota started providing one key fob with new vehicles instead of the standard two to help mitigate the shortage. When a second fob was available, customers had to return to the dealership and wait for it to be reprogrammed, the lawsuit said.
Nine vehicles have had this problem since April, according to the lawsuit.
Toyota responded to an email from the BDN but did not immediately provide a comment.
When a new car is sold, a second key fob is included in the price. If the fob is not available, Downeast must order it and pay the wholesale price. With other parts that are delayed, Toyota provides reimbursement at retail price, the lawsuit said.
Downeast says Toyota should pay the retail cost of $198.91. Downeast buys the key fobs at the wholesale price of $119.59, which allows the Brewer business to keep the remaining $79.32, the lawsuit said.
Instead Toyota has the price set at 1 cent, according to the lawsuit.
The Maine Dealer Act guarantees franchisees reimbursement at the retail rate, which Toyota is not doing, according to the lawsuit. Under Maine law, the brand has a “duty not to engage in an unfair and deceptive act and practice toward its dealers,” the lawsuit said.
The customer is not charged for the second fob because it’s included in the vehicle purchase, according to the lawsuit.
Another semiconductor chip shortage is possible if President Donald Trump enacts 100 percent tariffs on semiconductor imports, as he said earlier this month. Those tariffs may create delays or price increases, according to the BBC.
During the height of the shortage in 2022 Toyota announced new cars would come with only one key fob, Fox Business reported. It’s unclear how widespread the practice is now.
Berlin City Toyota of Portland is not having issues with receiving key fobs, a person within its parts department told the Bangor Daily News.
Charlie’s Toyota in Augusta has not had a key fob shortage since 2024, Sales Manager Ryan Williams said.