Toyota and Honda are tightening their belts
The two companies reported they planned to reduce costs in order to free up cash to develop electric cars and ride-sharing services. According to Toyota, higher costs to develop new technologies was ramping up pressure to generate savings wherever possible.
Two top Japanese automakers decided to reduce costs in the years ahead
Stocks impacted: Toyota Motor Corp (TYT), Honda Motor Co Ltd (HMC)
Meanwhile, Honda will strip down its vehicle lineup to cut production costs. In particular, it will cut the number of car model variations to a third of current offerings by 2025, reducing global production costs by 10 percent. In this effort, Toyota and Honda will lift operating profit by 3.3 percent to 2.55 trillion yen ($23.20 billion) in the year to March 2020. In the year just ended, Toyota posted an operating profit of 2.47 trillion yen.
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