Toyota, in order to optimize its production processes, has teamed up with Honda, Mazda, Suzuki, and Mitsubishi to develop a joint strategy to reduce production costs. At a meeting held at Toyota’s Tahara factory at the end of July, efficiency-enhancing solutions were discussed within the framework of the company’s SSA (Smart Standard Activity) program, which has been running since 2017.

The meeting, attended by industry professionals, focused on production processes and quality standards rather than competitive issues. In particular, the goal is to prevent modules from being scrapped due to cosmetic defects that customers may not notice.

A New Era of Flexibility in Production Processes

Japanese automotive manufacturers aim to strengthen their supply chain against Chinese Competitors by adopting a more flexible approach in module selection and elimination processes. Toyota argues that acting alone will not be sufficient in the current crisis environment and sees cooperation with other major players in the sector as necessary.

Former Toyota CEO Koji Sato had previously emphasized at a conference with suppliers that the current quality control standards were excessively strict. Sato stated that equipment shortages and quality errors that caused operations to stop were extending vehicle development times and increasing costs.

New approach to quality standards

New Toyota CEO Kenta Kon also supports these views, pointing out that the company’s current profit margins do not reflect the true situation. It is stated that practices such as not accepting cosmetic defects in closed sections that vehicle owners do not see are causing significant problems in production.

With this new approach, the Japanese automotive sector aims to both reduce costs and increase operational efficiency. Do you think this flexible quality policy of Japanese automotive giants will provide brands with the expected advantage in global competition?