Toyota has reportedly decided to skip price cut demand to its domestic steel suppliers, in a move seen as an unexpected concession as it experiences strong earnings bolstered by the weak yen.
The move comes in spite of falling steel prices on international markets due to weaker demand from China.
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The move by Toyota follows earlier decisions to not ask its automotive components suppliers to lower their prices. The steel makers are involved in separate negotiations with Toyota.
Nikkei said that steelmakers went into negotiations with Toyota expecting to be forced to cut prices substantially, but the two sides agreed to maintain prices at current levels.
The report added that some in the steel industry may ‘call it a victory for Abenomics’, given the government’s hopes that Toyota will be one of the key companies to help boost Japan’s weak economy.
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