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Toyota embracing small flaws as supply chain pressures bite -Breaking

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© Reuters. FILEPHOTO: A Toyota Motor Corp. employee works at the Motomachi plant, Toyota Prefecture (Japan), May 17, 2018. Picture taken May 17, 2018. REUTERS/Issei Kato/File Photo

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TOKYO, Reuters Toyota Motor (NYSE) Corp said Tuesday that it was happy to accept scratched and blemished parts as a result of a global shortage of chips and rising costs.

Toyota accepts parts it might have to throw away and uses them as good quality. It is an important change in a company that has been known for its strict quality control practices.

We are very careful with the exterior of our cars, and the parts that you can see. “But there are lots of places that people don’t notice unless you really look closely,” Takefumi Shiga said, Toyota’s chief vehicle project leader.

Toyota last month raised its operating profit outlook https://www.reuters.com/business/autos-transportation/toyota-second-quarter-quarterly-profit-climbs-2021-11-04 12% for the year ending March 31, helped by favourable currency rates. But, the company warned of a shortage in semiconductors that was slowing production and increasing costs. This would impact its overall profitability.

Shiga, along with other Toyota engineers, are continuing a program that began in 2019. They will meet third-tier component suppliers to ensure they are aware of any scratches and blemishes. This is to make sure the supplier does not have to affect vehicle safety or performance. It’s unlikely car buyers will notice them.

Shiga stated that it takes courage.

He said that a visit to a manufacturer of plastic seat belt components reduced by three quarters the amount being rejected.

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