Toyota Motor plans to consolidate purchases of resin materials among group companies to cut costs and strengthen its bargaining power, the Nikkei business daily has reported.
The automaker will bundle its purchase of polypropylene beginning this fiscal year, the newspaper said in an unsourced report, according to Reuters.
Toyota expects the consolidated purchases will bring down polypropylene costs, which accounts for about 40% of the company’s resin procurement, the Nikkei said.
The company buys 500,000 to 600,000 tons of resins a year, worth JPY200bn (US$2.24bn), the paper added.
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