Toyota Motor's (TYO:7203) plan to partially compensate suppliers for its decision to halt development of the flagship electric vehicle, LF-ZC sedan, is expected to cost the company tens of billions of yen, Nikkei Asia reported Thursday.
The automaker's plan to cancel the development of its Lexus-branded sedan in May has disrupted its supply chain, with parts suppliers likely to incur losses worth billions of yen each.
The decision to halt the EV plans is attributed to the new president, Kenta Kon's, focus on profitability.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)