Toyota telling suppliers not to sell parts to Hyundai

It has been said before that Toyota's biggest worry is not overtaking GM in sales, but rather Hyundai overtaking Toyota in sales. With that in mind, Toyota has told suppliers not to sell parts to Hyundai. If the suppliers resist, Toyota may increase their stockholding in these companies, and thereby force them to do so.

Snippet: It could be said that major car parts are developed jointly by carmakers and their affiliates... So, "It's like fattening a rival company at Toyota's own development expenses," says Toyota official. Some Toyota executives said, "We may have to pressure (the parts makers) not to do business with Hyundai. It may sound extremely drastic, but we may have to think of raising the stockholdings of our affiliates to make them do as we tell them."

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• Posted by: Bob Holland June 19, 2006, 5:21 AM
• Categories: Hyundai, Toyota