02:57 PM EDT, 09/17/2025 (MT Newswires) -- Toyota Motor ( TM ) is expanding an initiative to minimize unnecessary parts in a bid to improve productivity and add capacity, Nikkei Asia reported Wednesday, citing company executives.

A team of around 40 people from backgrounds of sales, development, procurement and production handles the efficiency project called Area 35, according to the report, as the initiative focuses on making sure that the company's assets are being used effectively, said Yasushi Ueda, president of Toyota's ( TM ) internal Mid-size Vehicle Company, Nikkei Asia reported.

The Area 35 project is not only about reducing parts, but understanding customers' needs to right-size cars and parts, Executive Vice President Yoichi Miyazaki said, according to the report.

Ten of Toyota's ( TM ) factories located inside and outside Japan, where the initiative is being implemented, have slashed the number of parts used by up to 80%, freeing up 35% of the floor space, allowing the company to boost production capacity in Japan by 80,000 vehicles, Nikkei Asia reported.

Toyota ( TM ) intends to expand the project to a total of 18 plants this year in countries including Japan, Czech Republic, Canada and the US, the report added.

Toyota ( TM ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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