From Businessweek
The auto giant is taking its cost-slashing drive to a new level. Can its suppliers match China’s cheaper parts?
Five years ago, Toyota Motor Corp. (TM ) stunned the auto world by embarking on a plan to slash costs 30% across the board for the car parts it buys — from air-conditioning ducts and door-assist grips to windshield wipers. The bold plan to squeeze its own network of traditional suppliers, known as a keiretsu, was designed to make sure the Toyota group would retain its competitive edge against a spate of global auto alliances such as DaimlerChrysler (DCX ), which promised gigantic synergies from their bigger size.
