22 December 2009 | Jake Kanter
Carmaker Toyota has told suppliers it plans to cut the cost of car parts by 30 per cent, according to Japanese media reports.
The company will turn to procurement to help it regain profitability next year following a dire 12-months for the automotive industry.
Toyota is said to have asked vendors to cut part costs by 30 to 40 per cent by 2013. Other reports suggest the Japanese manufacturer also plans to switch to cheaper materials and goods.
The savings target is thought to be one of the most ambitious in the company’s history. It is likely to test Toyota's supplier relations, which have been praised by industry experts in recent years.
Elsewhere, the Financial Times reported that Toyota has reorganised its procurement function, merging three buying divisions into two in an effort to make further cutbacks.