Honda Not to Ask Suppliers to Cut Prices in FY 2023

Tokyo, March 1 (Jiji Press)--Honda Motor Co. <7267> will not ask its primary suppliers to cut prices for auto parts in fiscal 2023, it was learned Wednesday.

Honda makes such requests in normal years. But the company will refrain from doing so in the next fiscal year, taking into account suppliers' earnings that have been squeezed by higher material costs and production halts due to semiconductor shortages.

Among other major Japanese automakers, Toyota Motor Corp. <7203> will forgo asking suppliers, except some major makers, to cut prices in the first half of fiscal 2023. Meanwhile, Nissan Motor Co. <7201> plans to make such requests as usual.

Honda has informed its primary suppliers at a recent briefing of the decision to skip price cut requests, informed sources said.

Honda hopes that the decision will also help secondary and lower-tier suppliers reflect higher costs in their prices, as well as lead to investments to raise wages and improve profitability throughout its supply chain network, according to the sources.

[Copyright The Jiji Press, Ltd.]