Toyota Boshoku, a major supplier for Toyota, is implementing a strategy to reduce the number of part types by 33 percent to improve profitability. The company aims to increase its operating profit margin to 7 percent by 2030, compared to a forecast of 3.8 percent for the current year. This initiative involves simplifying product design, enhancing productivity, and optimizing existing assets.
The supplier has already achieved a 76 percent reduction in headrest components. Future seat frames are being designed to be 20 percent thinner and 5 percent lighter than current market alternatives, while also increasing in-house manufacturing. Additionally, the company is targeting a 42 percent reduction in total meeting time through its new operational efficiency initiative.
Beyond internal cost-cutting, Toyota Boshoku plans to expand its business with other automakers, aiming to triple its non-Toyota sales by 2030 compared to 2022 levels. The company also intends to integrate AI-driven design tools and process innovations to eliminate waste across manufacturing and logistics operations.
Volkswagen Group is pursuing a similar strategy to manage rising complexity. The German manufacturer has announced plans to reduce its model lineup by up to 50 percent and cut available vehicle options by as much as 75 percent. Both companies are focusing on streamlining configurations to optimize development and production costs.
