Toyota to cut North American production


Things are getting bad for everyone. Toyota Motor Corp. said it is facing “the worst automotive slump in decades.” As a result, Toyota will reduce production at its North American manufacturing plants and offer buyouts to employees.

Toyota said it will take steps including cutting production days in April, reducing paid hours for workers, eliminating executive “and salaried” bonuses, cutting executive pay and offering a “voluntary exit” to employees “who wish to pursue other opportunities.”

North America is Toyota’s largest market, where it sold 521,000 vehicles in the October-December quarter, compared with 465,000 in its next-biggest market, Japan.

As per its latest forecast, Toyota expects North American sales to drop to 2.07 million units during the current financial year ending March 31, from 2.96 million units in the previous financial year. Sales are also expected to drop in its home market to 1.94 million units this fiscal year from 2.19 million.
Toyota also said it sees “no wage increases for the foreseeable future.”

Toyota Motor Engineering & Manufacturing North America Inc., which employs roughly 25,000 workers, is offering all of them 10 weeks of pay, two weeks of additional pay for every year of service and $20,000 to leave the company, according to a report in the online edition of The Wall Street Journal.

Mike Goss, a Toyota spokesman, was quoted by the report as saying the company doesn’t expect a significant number of workers to take the offer and that it didn’t have any target for the “voluntary exit program.”


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