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Toyota Picks Supply Chain Over Layoffs to Cut Costs

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Toyota

In efforts to trim its costs and widen its margins on its vehicles, Akio Toyoda is initiating one of his largest strategic changes since he took the helm of Toyota in 2009: the company will be significantly shortening its list of different components, and adopting an approach that favors a more common component-based production model.

 As of right now, Toyota uses about 50 different types of airbags, all designed to protect the knees of the driver. The company needs so many different units because different models had differing profiles for their driver seats. Rather than ordering different parts for nearly every single vehicle it makes, Toyota will be moving to a more standardized component model, which it hopes will help bring down its driver knee-protection airbag count from 50 to about 10...Read more on wallstcheatsheet.

Last modified on Thursday, 13 June 2013 09:37

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