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The Japanese automaker asked suppliers to reduce prices by 30% in key parts categories and to expand their use of Chinese-made components
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Honda $HMC has instructed suppliers to cut costs as part of a plan to save 1.5 trillion yen ($9.4 billion) by 2030, according to Reuters, which reviewed internal company documents and interviewed two people familiar with the matter.
According to Reuters, Honda has set a goal of achieving 30% cost savings across three specific categories of parts: pressed and forged components, electrical parts, and components tied to software-defined vehicles. Suppliers were additionally urged to increase their reliance on components manufactured in China and to shift more of their procurement toward second- and third-tier vendors supplying standardized parts.
