Japan's car makers seek low cost parts

Seeking a way out of a decline in their international competitiveness caused by the strong yen, major Japanese automakers, including Toyota Motor Corp. and Nissan Motor Co., will begin full-scale procurement of low-cost auto parts from South Korean suppliers. About 10 carmakers from Japan are scheduled to take part in an industrial parts and materials exhibition and procurement negotiation fair in Seoul beginning Sept. 29.

Until now, Japanese auto firms have relied on affiliated domestic parts makers for procurement. The moves by the nation's carmakers to boost overseas procurement could deal a heavy blow to Japanese parts companies affiliated with the major auto firms, sparking worries about a hollowing out of the domestic manufacturing base, analysts said.

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