Toyota Motor has decided to forgo the request to the supplier to reduce the price of the parts procured in the second half of 2022 (October 2010-March 2011). Consideration was given to prolonging the production of vehicles and soaring materials due to a shortage of parts. We will give top priority to the management stability of our suppliers and maintain the supply chain (parts procurement network). Kazuo Kumakura, general manager of the procurement division of the company, revealed this in an online interview on the 25th.
Toyota usually asks its suppliers to revise the prices of parts once every six months, but due to the effects of the new coronavirus and the shortage of semiconductors, Toyota has often revised its vehicle production plans downwards, so 3 Scrutinize the burden on the supplier every month. Mr. Kumakura explained that "suppliers, especially those after Tier 2 (secondary subcontracting), are in a very difficult situation" due to the recent cut in production and soaring materials, and said that they did not request a reduction in April-June.
After July, "I thought production would settle down" (Mr. Kumakura), so at the beginning of July-September, some suppliers were requested to reduce the price, but China due to the spread of the new corona infection.・ Since production is still unstable due to the lockdown (city blockade) in Shanghai and the influence of semiconductors, we canceled the request for price reduction in the second half.
Toyota is also considering dealing with suppliers for energy costs such as soaring electricity and gas. When the market for materials fluctuates, Toyota bears the burden based on certain rules agreed upon in advance, but there is no agreement on fluctuation rules between Toyota and its suppliers regarding energy costs. For this reason, suppliers are asking for a response, and Mr. Kumakura said as a temporary response, "We are considering how to provide an effective and realistic response."
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