Denso in talks with Toyota on cost sharing

TOKYO: Denso Corp is in talks for cost sharing on some raw car materials with suppliers and customers including Toyota Motor Corp. to mitigate US tariff measures.

The Japanese auto parts maker is seeking to share and reduce costs on materials including steel and aluminum, Chief Executive Officer Shinnosuke Hayashi said in an earnings conference on Thursday.

It's also considering to absorb burdens for small and medium-size suppliers.

US President Donald Trump's 25% tariff on imports of all foreign-made vehicles kicked in on April 3, reverberating across the globe and leaving automakers reeling.

Denso warned it may revise its 2026 forecasts in coming quarters, as it didn't account tariff impact in its current figures.

The company is projecting a record ¥675 billion operating profit in 2026.

The parts manufacturer could sustain profit growth supported by recovering carmaker production and "robust demand for high-value products related to electrification and advanced safety," though tariffs may dent momentum, according to Bloomberg Intelligence analyst Tatsuo Yoshida.