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Toyota scales back production further

A Toyota worker inspects a car on the line in Georgetown, Ky., where production will be stopped for nine days. A Toyota worker inspects a car on the line in Georgetown, Ky., where production will be stopped for nine days. (James Crisp/Associated Press/File 2008)
Associated Press / December 11, 2008
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TOKYO - Toyota Motor Corp. said yesterday it would further reduce production at several factories in North America, as the global slowdown continues to cut into the automaker's sales abroad.

Japan's largest carmaker will temporarily suspend output in December and January, according to Toyota spokesman Paul Nolasco.

Production will be stopped in Indiana for six days, in Kentucky for nine days, and in Canada for 10 days. In addition, production of the Corolla and Tacoma at a plant in California jointly run with General Motors will be suspended for 10 days.

The latest reductions follow those in the United States and Canada announced last month, including cutting several hundred contract workers.

Toyota has also suspended production at factories in Japan, and slashed its profit and overall production targets. Bonuses for midlevel managers will be cut by 10 percent.

The company is feeling the effect of the economic slowdown in the United States, where its sales tumbled 34 percent in November.

But it is not in the dire straits of its US rivals, which are waiting for Congress to approve $15 billion in emergency loans from Washington.

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