Toyota Launches European SME Plan Under U.S. Tariff ThreatToyota Launches European SME Plan Under U.S. Tariff Threat

As the prospect of punitive U.S. tariffs looms over automotive products from the European Union, Toyota’s Europe wing launches an initiative to tempt small- and medium-sized enterprise (SME) suppliers into its network.

Toyota Motor Europe says it aims to connect SMEs with business units throughout the Toyota group through its Toyota Open Labs platform to support collaboration and production scaling up in the drive for sustainability in the supply chain.

The platform’s existing partners include Toyota Tsusho Europe, the trading and supply-chain arm of the group; Kinto Europe, the group’s mobility brand; Woven Capital, its growth-stage venture fund, and the not-for-profit Toyota Mobility Foundation.

The automaker is clearly steeling itself for potentially business-damaging effects from the tariffs threatened by U.S. President Donald Trump, who this week says they will be coming “pretty soon.”

He tells media the EU "don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products.”

Facing up to this threat, Toyota says selected companies will work with its key business units on strategic categories such as technologies and systems for battery-electric vehicles with grid balancing, energy management, smart charging and vehicle-to-grid bi-directional energy transfer.

In line with the automaker’s multi-energy transport approach, hydrogen ecosystems will also be explored in areas of carbon capture and emissions reduction.

Other business models to be covered include recycling and reuse of vehicles and components, mobility systems such as vehicle sharing, subscriptions and mobility hubs plus the best implementation of artificial intelligence, education and inclusivity.

These new SME partners are promised new avenues of growth, enhancing their business strategy and investment opportunities and help with building global relationships.

Monica Perez Lobo, vice president of corporate affairs and sustainability at Toyota Motor Europe, says, “By including SMEs on the Toyota Open Labs platform, we aim to form strong partnerships where new, innovative capabilities are leveraged at scale to accelerate the mobility transformation towards a sustainable future.”

The deadline for applications for SMEs is March 14, 2025.