Toyota Takes A Lesson From Walmart And Threatens Japanese Suppliers If They Can't Cut Prices

Toyota Motor Corp. is telling parts suppliers in Japan to slash prices or face being replaced by overseas rivals as the yen's value appreciates, four people involved with the discussions said.

Toyota, which loses 34 billion yen ($443 million) in operating profit for every 1 yen appreciation against the dollar, told partsmakers it intends to increase procurement in emerging markets in cases where domestic suppliers can't match overseas prices, according to the people, who declined to be identified because the talks are private.



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Joe_Limon - 10/7/2011 10:38:43 AM

-1 Boost

This isn't the first time Toyota has forced their suppliers to provide them with cheaper parts...

Agent009 - 10/7/2011 10:52:40 AM

-2 Boost

Great way to force components to be made in India or China

Joe_Limon - 10/7/2011 11:36:59 AM

+1 Boost

You'll find that after most car companies sign a contract to provide parts they don't go back and force the supplier to cut the costs.

LexSucks - 10/7/2011 6:24:42 PM

-1 Boost

Cheaper parts = Worse Quality.

But hey.... These are the best engineered cars in the world. Aren’t they?