Toyoda Gosei, a supplier of steering wheels and air-bags to the auto-giant, plans to cut its capital expenditure by between 20 and 30% according to its president, Tadashi Arashima, who was speaking to Bloomberg.
Although no time-frame was given for the company to reach its target, it comes at a time when the yen is weakening, which is helping the company to improve its competitiveness abroad.
Over the last month, the yen has fallen by 5%, which has caused some consternation among many other nations.
“We are competing with makers from emerging countries, so we can’t be relaxed just because the yen is weakening,” said Arashima.
He added that the company was considering using local equipment makers or mould makers in emerging markets, but only as long as they met quality and price requirements.
Last year Toyoda spent some $416m on capital expenditure during the 12 months to March 2012.
