Toyota to cut production in N America
Tokyo, Jan 16: In a bid to cut its vehicle inventory in half, Toyota Motor Corp, the world's largest car maker, said on Thursday, Jan 15 that it would cut production at several North American plants over the next few months.
However,
Toyota
shares
gained
3
per
cent
in
Tokyo,
outperforming
the
overall
market.
Automakers
are
grappled
with
slumping
sales
in
the
mature
markets
of
North
America,
Europe
and
Japan
as
well
as
slowing
sales
in
emerging
markets
such
as
India,
China
and
Russia
amid
a
spreading
global
recession.
Toyota's announcement followed a newspaper report that rival Nissan Motor Co planned to move production of its March subcompact to Thailand from Japan as part of a structural overhaul to cut costs.
Nissan spokeswoman Yuko Matsuda said she cannot comment on the firm's future product plans. Nissan announced further production cuts in Japan on Thursday and a source said it would post an operating loss this financial year.
Toyota, which has warned it would post its first-ever annual operating loss this fiscal year, said its inventory of North American built vehicles ranged between 80 and 90 days. It hopes to cut that in half in the second quarter of the year.
Toyota
just
last
week
said
it
would
halt
production
at
its
Japanese
plants
for
11
days
in
February
and
March.
"This
is
a
tough
environment,
and
it
may
continue
for
a
while," Jim
Wiseman,
vice
president
of
external
affairs
for
Toyota
Motor
Engineering
&
Manufacturing
North
America,
said
in
a
statement.
OneIndiaNews (With inputs from Agencies)