Honda Motor will help suppliers improve cash flow by switching to lump-sum payments for auto part dies instead of protracted installments, Nikkei has learned, sparing these companies the risks related to rising interest rates. https://t.co/nCEhdfqiV3
HONDA MOTOR TO HELP SUPPLIERS IMPROVE CASH FLOW SWITCHING TO LUMP-SUM PAYMENTS FOR AUTO PART DIES - NIKKEI
HONDA INFORMED MAJOR SUPPLIERS CHANGE TO LUMP-SUM PAYMENTS FOR DIES COULD TAKE EFFECT IN FY BEGINNING NEXT MONTH - NIKKEI
LUMP-SUM PAYMENT WOULD "REDUCE RISKS RELATED TO RECOVERING FUNDS, REDUCE INTEREST COSTS," HONDA-AFFILIATED PARTS CO SAID - NIKKEI
Honda To Shield Suppliers From Higher Rates With Lump-Sum Payments - @NikkeiAsia https://t.co/dJX6x5Poly
HONDA TO SHIELD SUPPLIERS FROM HIGHER RATES WITH LUMP-SUM PAYMENTS - NIKKEI
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Honda Motor has announced a strategic move to support its suppliers amidst rising interest rates by transitioning to lump-sum payments for auto part dies, as opposed to the previous installment-based payment model. This change, aimed at improving suppliers' cash flow, is set to take effect in the fiscal year beginning next month. The decision is expected to mitigate risks associated with fund recovery and reduce interest costs for suppliers, reflecting Honda's commitment to shielding its partners from the financial strain of higher rates. This initiative was detailed in reports by Nikkei, highlighting Honda's effort to maintain a stable supply chain and support its affiliated parts companies.