Daihatsu introduces New Move that boasts fuel consumption of 27km/L

Purchasing Reform will reduce parts procurement costs by 30% by the end of 2011

2011/01/13

Summary
New Move with idling stop system achieves fuel consumption of 27km/L
Daihatsu held the largest share of the mini car market for four consecutive years with the
Daihatsu estimates consolidated sales volume would increase by 3.4% to 1.317 million for the FY2010
Daihatsu revised upward its forecast for the FY2010 full-year results, expecting operating profit
Daihatsu to cut procurement cost by 30% by the end of FY2011 through "purchasing reform"
Overseas operations: Daihatsu to boost its production capacity by 50% in Indonesia and to introduce
Toyota group business: Daihatsu to start to supply mini cars to Toyota on an OEM basis in the fall

Summary

Daihatsu intends to establish a business model in which it can turn a profit with mini cars under the current tougher market environment where it is competing with lower-priced hybrid vehicles and compact cars. It has been maintaining its target to sell 600,000 mini cars, currently developing fuel efficient, low-priced models that save energy in order to step up the presence of mini cars.

In addition, amid global competition for lower prices, it is currently implementing "purchasing reform," in which it aims to cut 30% of the purchasing cost by the end of FY2011 by aggressively finding new suppliers and through cost reduction that it seeks jointly with suppliers.

Concerning its overseas business, Daihatsu's main markets, Indonesia and Malaysia maintain their economic stability and are currently expanding their markets. Also in its consigned/OEM business, the company started to supply mini cars on an OEM basis to Fuji Heavy Industries in 2009. It will also supply mini cars to Toyota on an OEM basis starting in 2011.

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