Toyota To Cut Domestic Production
The automaker is slashing costs to avoid losses
Toyota Motor is planning its first long-term closure of a domestic assembly line as vehicle sales in the country fall to the lowest in more than 30 years, reported Bloomberg.
Global economic downturn has adversely impacted global vehicle demand. Many auto plants around the world are idle or running below capacity. Earlier this month, automaker Toyota forecasted a net loss of $4.8b for the year ending in March.
Toyota cut domestic production by 49% through June. The company is likely to shift some vehicle production to affiliates during the closure, said the company.
Toyota would reduce output by about 220,000 vehicles by shutting down a line at its Takaoka plant from the fiscal first quarter of next year through the second half of calendar year 2011, Bloomberg reported, citing the automaker's spokeswoman Ririko Takeuchi.
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