Toyota seeks talks to buy Korean auto parts, trade officials say
TOKYO (Bloomberg) -- Toyota Motor Corp., headed for its lowest profit in three years, is seeking talks to procure components from South Korean companies including Hyundai Mobis, two trade agency officials said this week.
The Japanese carmaker asked the Korea Trade-Investment Promotion Agency to arrange meetings in Seoul with South Korean suppliers, said the officials, who asked not to be identified because the meetings are private. Toyota and Hyundai Mobis officials didn't immediately comment.
Purchasing components from outside Japan may help Toyota cut costs after the yen appreciated more than any other major currency this year. It would also allow the company, which has lost market share to General Motors Co. and Hyundai Motor Co., to diversify procurement after Thailand's worst floods in almost 70 years disrupted output at car factories in Japan and the U.S.
"Procuring parts from Korea will definitely benefit Toyota in combating the strong Japanese currency and also in diversifying production to prepare for natural disasters," said Masatoshi Nishimoto, a Tokyo-based analyst at research firm IHS Automotive. "While Toyota's production was severely hurt this year by the March 11 earthquake and the floods in Thailand, Hyundai was barely hurt."
Dion Corbett, a spokesman at Toyota, which slashed its annual profit forecast by 54 percent last week, said he couldn't immediately comment. The Asahi newspaper reported earlier that Toyota officials would meet Hyundai group officials on Thursday and Friday.Contact Automotive News