Toyota Motor Corporation has decided to raise the overall price of parts procured from partner manufacturers to a higher level than the current level in the first half of next fiscal year. The aim is to encourage business partners to ``invest in people,'' such as raising wages and improving the working environment.
At Toyota, we revise the prices used when procuring parts from our partner manufacturers twice a year.
For the first half of next fiscal year (April to September), Toyota has decided to raise overall procurement prices from the approximately 400 domestic companies with which it has direct business transactions to a higher level than the second half of this fiscal year.
Regarding this response, Toyota says that in addition to taking into account rising raw material and energy prices, the company aims to encourage its business partners to "invest in their people," such as raising wages and improving workplace environments.
The specific price, including these "additional charges", will be determined through negotiations with each manufacturer.
According to Toyota, it has been receiving feedback from its manufacturing partners that it is difficult to hire staff amid increasing production loads and that they would like to create a more comfortable work environment.
Toyota says, ``Considering future growth, this kind of response is urgently needed, and we would like to have a ripple effect throughout the supply chain.''