Toyota delays plans for seeking lower prices from suppliers...

Toyota delays plans for seeking lower prices from suppliers this year

-

TOKYO — Toyota Motor Corp. will not unilaterally press its suppliers for lower prices for the second half of its fiscal year and is also considering supporting their energy bills, an executive said on Monday.

The move reinforces an attempt by the world’s largest automaker by sales to shoulder more of the burden faced by suppliers as global supply chain woes continue and energy costs soar.

Like other automakers, Toyota has been battered by the global shortage of semiconductors and COVID-19-related lockdowns, prompting repeated cutbacks in vehicle production and frustrating suppliers.

Toyota initially sent out a request for lower prices for the July-September period to some suppliers, but the company decided not to make a request to cover the October-March period since its production plan has yet to stabilize, said Kazunari Kumakura, Toyota’s purchasing group chief. It also did not make a request for the April-June period.

“As other automakers are drastically reducing production, there are many suppliers whose sales and operations are supported by Toyota’s volume, so I believe it is necessary to respond to the voices of such suppliers,” Kumakura told reporters.

Toyota is also considering ways to assist suppliers with rising electricity and gas costs.

Facing “unprecedented” hikes in raw material costs, Toyota in May projected material costs to more than double to 1.45 trillion yen ($10.64 billion) this business year, potentially slicing a fifth off full-year profit.

Read More

Latest news

Processing a Tragedy in Monterey Park

The news that a mass shooting had taken place at a ballroom-dance studio in the Los Angeles County city...

EcoPoxy Products Are Now Available Online for Sale

Emigrant, MT, 27th January 2023, ZEXPRWIRE, All American Woodworks is thrilled to announce that they have updated their inventory...

Ainnova Tech announces Dr. Maziar Lalezary, M.D. as Medical advisor and member of Medical Board

Renowned Ophthalmologist joins to the team to accelerate development of early detection solutions with AI for retinal imaging Houston, Texas,...

Top-5 hospitality trends to look out for in 2023

Mumbai, India, 27th January 2023, ZEXPRWIRE, The hospitality sector was affected by Covid 19 in a way similar to...
- Advertisement -spot_img

Dr. Safi Chand, the owner of New Market Animal Hospital Launched Pet Healthcare Library

New Market, Maryland, 27th January 2023, ZEXPRWIRE, Dr. Safi Chand is a veterinarian and the owner of New Market Animal...

Nashville Religion Communicators to Tour Nashville Public Radio

The Nashville Chapter of the Religion Communicators Council (RCC) meets monthly to talk about topics of interest and hear...

Must read

- Advertisement -spot_imgspot_imgspot_imgspot_img

You might also likeRELATED
Recommended to you