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NINETY EIGHT REGENCY

Toyota to cut parts spending by 30 percent

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Toyota to cut parts spending by 30 percent

12/22/2009, 11:11 AMBY DREW JOHNSON

Toyota – the world’s largest automaker – is forecasting its second consecutive year of operating losses, prompting the Japanese automaker to request heavy discounts from its parts suppliers. Toyota is looking to cut about 30 percent from its annual parts costs.

In order to return the company to profitability, Toyota is asking its parts suppliers to cut the prices of some parts by 30-40 percent, according to Japan’s Asahi daily. The price cuts are beig request for vehicles scheduled to hit the market by 2013.

Additionally, Toyota will make the switch to less expensive parts and materials. It remains to be seen how the less expensive parts and materials will affect the automaker’s overall quality, but cheaper rarely equates to better in the automotive world.

The price cut request is Toyota’s largest in 10 years. Although price reductions will be seen in vehicles headed for established markets, Toyota’s main reason for the cuts is to remain price competitive in developing regions.

link:

http://www.leftlanenews.com/toyota-to-cut-parts-spending-by-30-percent.html

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Or they could put 30% less parts in each vehicle. 2 lug nuts per wheel should do the trick. And why does the passenger need a windshield wiper too?

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This ought to be good, I can finally see Toyota making the "old" GM's mistakes. They might actually be next giant to fall with this kind of an attitude.

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Hey... I know a few cars that would have benefited from 30% less gas pedal...

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Toyota cutting supplier expenses by 30%, probably means using cheaper parts

As with every other automaker – heck, almost every other company – Toyota wants to save more money. Japan's Asahi business daily revealed a Toyota initiative to lower its parts expenses by 30% over the next three years, and it is one that we're all too familiar with: Toyota told its suppliers to cut their prices by 30-40%. Can anyone guess how suppliers will most likely remove one-third the cost of their parts? If you said "use cheaper materials," we have your prize backstage...

A Toyota spokesman said the company had given "various suggestions including cost reductions" to the affected portion of its supplier base, which makes it sound like at the very least the company didn't just say "Here's less money, make it work." There are more than 200 vehicle components involved the move – that might sound sizable on its own but it's a tiny fraction of all the parts in a car.

Ultimately, Toyota wants to ensure its competitiveness in emerging markets and guard against a strengthening yen. Assuming the initiative is carried out, the parts in question will be used for cars arriving for the 2013 model year. We hope that by 2014 it is clear that Toyota chose the right bets for this game of parts roulette.

more:

http://www.autoblog.com/2009/12/24/toyota-cutting-supplier-expenses-by-30-probably-means-using-ch/

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