Toyota Will Close It’s Doors For Two Weeks
TOKYO — Toyota Motor will idle its plants in Japan for 11 days in February and March to reduce output in the face of steeply declining global vehicle sales, the company said Tuesday.
The Japanese auto giant said the suspension will affect production at all 12 of its directly operated domestic plants, which include 4 vehicle assembly plants and also factories that make transmissions, engines and other parts. The stoppages are in addition to a three-day shutdown this month at these plants that Toyota had already announced.
The move is unprecedented for a company that just a few months ago seemed unable to keep up with voracious global demand for its fuel-efficient vehicles. But even strong players like Toyota have failed to escape the drastic slowdown in the global auto industry.
The company said it will idle the plants to reduce stocks of unsold vehicles amid a relentless slide in sales, particularly in the United States, its biggest market. Last month, Toyota’s sales there dropped 37 percent, a larger decline than at struggling American rivals General Motors and Ford.
Plunging sales and a stronger Japanese yen, which reduces the yen value of overseas profits, forced Toyota last month to forecast its first annual loss in 70 years at its vehicle-making operations.
Toyota did not say how many vehicles would be affected by the suspension announced Tuesday. The company said its four domestic assembly plants produced 1.5 million vehicles in 2007, the most recent year for which the company has figures. Toyota-brand cars are also made by other companies in the Toyota group.
SOURCE: NYTIMES.COM
Tags: assembly plants, auto industry, February, fuel-efficient vehicles, Japan, March, sales, suspension, Toyota
