Toyota won’t ask suppliers to cut prices – report

Toyota Motor will not unilaterally charge suppliers for lower prices for the second half of its fiscal year and will also consider subsidizing their energy bills, an executive said.

The automaker initially sent requests to some suppliers for lower prices for the July-September period, but the company decided not to make requests to cover the October-March period because its production plan was not yet stabilized, Kazunari Kumakura, Toyota. According to Reuters, the head of the procurement group said.

He also did not make a request for the April-June period.

The news agency noted that the move strengthened Toyota’s efforts to shoulder more of the burden faced by suppliers as global supply chain problems persist and energy costs rise.

Toyota has been hit by global semiconductor shortages and COVID-19-related shutdowns, prompting repeated Reduction in car production and frustrated suppliers.

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

Toyota also discussed ways to help suppliers deal with rising electricity and gas costs.

Due to an “unprecedented” increase in raw material costs, Toyota in May forecast a doubling of material costs to 1.45 trillion JPY ($10.64 billion) this business year, potentially cutting 20% ​​of full profit, Reuters noted.

Toyota won’t ask suppliers to cut prices – report

Source link Toyota won’t ask suppliers to cut prices – report

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