Carmakers find cost-cutting key to emerging markets  

Toyota Motor Corp. and its group of companies are making all-out efforts to slash production costs in the drive to develop low-cost compact cars for India and other emerging markets. Now that several global rivals have released models priced below ¥1 million (US$11,656), Daihatsu Motor Co., a Toyota group firm, is determined to find ways to slash costs among its suppliers. In late June, Daihatsu Chairman Kosuke Shiramizu visited a number of parts manufacturers as part of the firm’s efforts to overhaul its procurement system. To get fresh input, Daihatsu assigned an executive who had no experience in procurement to head its purchasing operations. That opened the door for 13 new parts suppliers, three of which are from China and elsewhere overseas. Until now, Daihatsu has rarely procured parts for mini-cars sold domestically from foreign makers. (August 2, 2010)