Toyota asks suppliers to cut prices due to pandemic

Toyota asks suppliers to cut prices due to pandemic

July 27, 2020 0 By autotimesnews

Toyota Motor has asked several of its suppliers to cut component prices in response to poor sales and a downward trend in costs amid the pandemic. This information was shared by the Nikkei agency.

According to the portal, the Japanese automaker sent inquiries to firms selling parts for the manufacture of which they used certain types of steel, in particular, elements of the engine and suspension. The cost of raw materials for their production has decreased compared to 2019, due to the situation with the coronavirus.

As a rule, prices are agreed with suppliers in April, when the fiscal year starts, or six months later in October, but the general state of affairs forced Toyota to reconsider this policy.

The Japanese corporation plans to introduce individual negotiations with each of the suppliers and is not going to ask for a single price. According to the agency, some firms that produce parts also suffered losses during the pandemic and may not agree to Toyota’s offer.

In addition, it was recently noted that Toyota has published prices for the 2021 Venza crossover. It is worth saying that even the standard variation of the new 2021 model year has a good list of equipment. Sales of the new model will start at the beginning of September this year.