Toyota plans to cut auto parts procurement costs by around 30 percent
By Andrew C., 26 Aug, 2010. 0 Comments
2010 Toyota Matrix
To regain profitability, Toyota Motor Corp. plans to cut auto parts procurement costs by around 30% in over three years, according to media reports. The Asahi Daily said that Toyota has asked suppliers to reduce prices of some parts by 30%-40% for cars that will arrive in the market by 2013. The Nikkei Business Daily also said that Toyota plans to switch to less expensive materials and parts. Toyota spokesman Takanori Yokoi said that the carmaker has informed suppliers of its various suggestions that include cost reductions; however, details were not disclosed. In addition, Toyota plans to overhaul its car designs to help cut costs. Toyota has already forecast its second straight annual operating loss. Toyota's request for a 30% reduction in costs (the largest in 10 years) coincides with its attempt to sharpen its price competitiveness in emerging markets, the Asahi daily said.
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