TOKYO (Reuters) - Toyota Motor Corp (7203.T) plans to cut auto parts procurement costs by around 30 percent over three years to help it regain profitability, media said on Tuesday.
Toyota has asked its suppliers to cut prices of some parts by 30-40 percent for cars that will hit the market by 2013, the Asahi daily said. The Nikkei business daily also said Toyota plans to switch to less expensive materials and parts.
Toyota spokesman Takanori Yokoi said the automaker had made “various suggestions including cost reductions” to suppliers on Monday, but he declined to disclose details.
Toyota, which has forecast its second straight annual operating loss, plans to overhaul its car designs to help cut costs, the two newspapers said.
Toyota’s request for a 30 percent reduction in costs — the biggest in 10 years — comes as the automaker is trying to sharpen its price competitiveness in emerging markets, the Asahi said.
Growing concern over the yen’s continued strength is also behind the move, the Asahi said.
Toyota's shares gained 1.6 percent to 3,780 yen while the broader Nikkei 225 index .N225 advanced 1 percent.
Reporting by Mayumi Negishi; Editing by Joseph Radford