Toyota works with steelmakers to cut costs--report

NEW YORK, Sept 30 (Reuters) - Toyota Motor Corp (7203.T) is working with five domestic steelmakers to find ways to cut steel procurement costs as costs for raw materials rise and sales slow, according to a report by Nikkei Business News on Tuesday.

The report on Nikkei's website said the measures would likely involve using more low-cost plate, reducing the number of product types and unifying specifications.

Toyota solicited cost-saving ideas from Nippon Steel Corp (5401.T), JFE Steep Corp, Sumitomo Metal Industries Ltd (5405.T), Kobe Steel Ltd (5406.T) and Nisshin Steel Co (5407.T) this past spring, according to the report. It said that Toyota has determined that about 100 proposals could be carried out, and three would be put into practice from October.

The Nikkei report said that if all those measures were implemented, it would cut production costs by 3 percent at the steelmakers.

Toyota buys 4 million tons of steel a year in the domestic market for about 400 billion yen ($3.76 billion), the report said. $1=106.35 yen JPY=