Toyota Plans to Cover Increase in Labor Costs of Parts Suppliers to Secure Talent amid Severe Labor Shortages
20:54 JST, February 19, 2024
Toyota Motor Corp. plans to cover the increase in labor costs of its parts suppliers from the first half of fiscal 2024, it said Monday.
The aim is to secure human resources throughout its entire supply chain to maintain competitiveness, amid severe labor shortages.
Toyota holds price negotiations with parts suppliers twice a year. While requesting price cuts from parts suppliers through cost-cutting efforts, in fiscal 2022 Toyota began allowing them to charge higher prices to cover the increase in the cost of raw materials including steel, aluminum and resin, as well as utility fees such as electricity and gas.
About 400 parts suppliers will benefit from Toyota’s latest plan.
"Business" POPULAR ARTICLE
-
China Struggles to Develop Passenger Jet to Rival Boeing, Airbus; Russian Cooperation Falls
-
JR East Eyes Freight-Only Cars for Shinkasen Trains as Japan Logistics Industry Suffers from Labor Shortage
-
JR East Employee in His 70s Earns Doctorate on Safe Train Operations; Believes Accidents Caused by Human Error Can Be Reduced
-
Japanese Cosmetics Firms Competing with South Korean Brands over Inexpensive Products; South Korean Brands Dominating Market Through Social Media
-
Japanese Automakers Team Up on Software Development; Aim to Compete with U.S., China in SDV Market
JN ACCESS RANKING
- Harris Widens Lead over Trump to 47%-40%, Reuters/Ipsos Poll Finds
- Japan-S. Korea Exchange Festival Held in Seoul
- Japan Trying to Draw Digital Nomads, Who Are Seen as Beneficial to Economy, Society
- JICA Employee Suspected of Leaking Info on ODA Project in Manila; Bidding for Railway Renovation May Have Been Impacted
- Asukayama Monorail in Tokyo: Free to Ride!