V. Future Vision, Business Strategy

Strategic Direction
Strategic Direction


CV Business: Product/Market
CV Business: Product/Market


For reference
HD Sales P'up
  - Export Forecast (Excl. Sales in Thailand) -
HD Sales P'up


Material Cost Reduction
Generate cost
saving through
volume merit, on
part-by-part
basis
CV Commonize next generation MD and LD cab (-30%)
Volume merit from HD and MD truck (-15%)
- In short-term, reduce domestic supplier prices by leveraging China/ASEAN volume (eg. extensive use of dies)
- In mid-term, expand procurement from China/ASEAN to achieve further cost reduction
Drastic de-proliferation : vehicle variations, engine series
- HD: 500 200
- MD, LD: 5,000 2,000
- Engine: 9 7 series

LCV Combine purchase volume with US-produced GM volume (WWP program)
Review manf. footprint plans for new engine (Japan, China, Thailand)
Secure re-quotation and/or re-source based on increase volume including derivative models (10%)

Unconventional
Approach
(esp.
leverage alliance)
  Joint purchasing with GM Alliance Partners (FHI, SZK, GM): 13 commodities + a
Collaboration with keiretsu body-builders: Integrate chassis & body engineering (body: 10%)
Supply component to 3rd parties (GM, domestic competitors, etc)
  - Suspension, T/M, Transfer
Reinforce complementary relationship with non-keiretsu suppliers

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