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Article: Toyota now plans to use modules, but in its own way.
- Article from:
- Automotive News Europe
- Article date:
- March 11, 2002
- Author:
CopyrightCOPYRIGHT 2002 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Toyota is reorganizing key parts of its supplier network to follow the industry trend toward modules.
But Toyota is taking a typically innovative approach. It is urging suppliers to consolidate and form joint ventures without giving up its equity stakes in those companies. That will have two benefits. Toyota will gain cost and resource savings, but suppliers' power as Tier 1 module developers will be limited.
Nissan, Mitsubishi and Mazda have also moved to lower costs by buying modules. But Toyota's actions are notable because it has strongly opposed modules, and because it tightened its stake in Toyota group companies while other Japanese carmakers ...
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