Toyota to slash global production capacity
Japan's Toyota Motor Corp., seeking to recover from its first year in
the red, plans to slash its global production capacity by up to 10
percent to cope with weak sales, reports said Wednesday.
Toyota will cut its output capacity by one million vehicles from the
current level of 10 million, the Nikkei business daily said, while
public broadcaster NHK reported that the reduction would amount to
700,000 vehicles.
A Toyota spokeswoman confirmed the company plans to suspend from
early 2010 until late 2011 a line at its Takaoka plant in Aichi
prefecture that can produce 220,000 vehicles a year, but said no other
cuts had been decided.
Toyota will reduce its capacity by shutting down a US joint venture
with General Motors Co. and by halting some production lines at
factories in Britain and Japan, the reports said.
Toyota will soon announce a decision to shut down the California
joint venture, New United Motor Manufacturing Inc. (NUMMI), which
produces cars such as the Corolla compact and the Tacoma pick-up truck,
they said.
Closing NUMMI will reduce output capacity by 300,000 vehicles a year,
while a further cut of 200,000 will come from halting one of two lines
at a plant in Derbyshire, Britain, that produces mainly Auris cars, the
reports said.
Toyota's domestic capacity will also be reduced by shutting down some
production lines at major factories in Toyota's home base of Aichi
prefecture in central Japan, it said.
TOKYO, (AFP)
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