Toyota cautions on impact of rising raw material costs

“We need to think about how we can respond to material inflation by eliminating the distinction between original equipment manufacturers and suppliers and working together as one,” chief financial officer Kenta Kon told reporters, referring to car makers.

TOKYO: Toyota Motor has warned that “unprecedented” hikes in raw material costs could slice a fifth off full-year profit.

This is a clear sign that the world’s top automaker by sales can no longer shrug off the supply-chain crunch that has roiled the global industry.