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Honda tells suppliers to cut costs in $9 billion push to fend off China: Report
Honda plans a 30% cut in three key parts categories as it faces rising competition from Chinese electric vehicle makers and higher costs.
- On Wednesday, Japan's Honda announced plans to cut more than $9 billion in costs over the next four years, instructing suppliers to drastically reduce their prices.
- Intensifying competition from China drives this initiative, as BYD and other makers capture sizeable market share in Southeast Asia, Latin America, and Europe with advanced technology and industry-leading prices.
- Honda aims to save 1.5 trillion yen by 2030, targeting a 30% reduction in costs for pressed and forged components, electrical parts, and SDVs.
- Following a spring meeting in Utsunomiya, Honda managers urged suppliers to use more Chinese-made components, with one source calling the targets "extremely large."
- Facing EV-related losses exceeding $12 billion, Honda is shifting focus toward gasoline-electric hybrids while standardizing parts across its global supply chain to improve competitiveness.
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EXCLUSIVE: Honda tells suppliers to cut costs in $9 billion push to fend off China, documents show
Japan's Honda aims to cut more than $9 billion in costs over the next four years and has instructed suppliers to drastically reduce their prices, according to internal documents and one person familiar with the matter.
·London, United Kingdom
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Honda tells suppliers to cut costs in US$9bil push to fend off China
TOKYO: Japan's Honda aims to cut more than US$9 billion in costs over the next four years and has instructed suppliers to drastically reduce their prices, according to internal documents and one person familiar with the matter.
·Kuala Lumpur, Malaysia
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Coverage Details
Total News Sources11
Leaning Left0Leaning Right3Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
C 57%
R 43%
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