Toyota Plans to Halt Production for 11 Days
Toyota has recently announced to halt its production for 11 days in an attempt to reduce the number of its unsold cars. This move is seen by its officials as a solution for the declining sales in its cars, a trend which is seen by analysts to worsen due to economic recession.
Car giant Toyota announced its plan to halt production activity for 11 days between February to March in an attempt to reduce the number of its unsold cars.
In this month, the company also declared to halt all the production activities in three days at its 12 factories for the first time since 1993 when it experienced low demand which forced the auto maker to stop operating for one day.
In the fourth quarter of 2008, the company experienced a sharp decline in its worldwide sales which fell 37 percent, an alarming trend which is worse than other car manufacturers including Ford and General Motors.
According to the company’s report released on Monday, Toyota’s annual sales in 2008 plunged to 7.4 percent.
However, the car manufacturer’s share has increased to 1.3 percent in Japan on Tuesday as yen weakened against dollar, a not surprising event since more than 40 percent of Toyota’s car sales in US is made in Japan.
According to analysts, the sharp decline in auto sales is a direct result of the economic recession experienced worldwide aggravated by people’s preference to take public transportation to save money on travel.
Japan Automobile Dealers Association (JADA) director Tekeshi Fushimi said in an interview that they were not expecting this unprecedented decline in sales, adding that lack of financing remains the major problem facing car manufacturers.
Meanwhile, US also experiences sharp decline in vehicle sales because most Americans were unable to have their car loans.
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