Honda Motor (TYO:7267) will carry out cost-cutting measures amounting to 1.5 trillion yen over a four-year period to boost its competitiveness against Chinese rivals, Reuters reported Wednesday, citing internal documents and people with knowledge of the matter.
The Japanese automaker previously met with major suppliers, asking them to make significant price cuts and informing them of its plan to get more components from Chinese suppliers, the report cited its sources as saying.
The company looks to lessen costs by 30% in key categories that include pressed and forged components, electrical parts and parts linked to software-defined vehicles, the report cited the documents as saying.
Honda did not immediately respond to' request for comment.
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