Toyota to cut Global Production by 10 Percent or 1 Million Cars
Toyota, the biggest Japanese automaker, announced on Tuesday that it will cut production capacity of its plants worldwide to raise utilization of idle production lines.
The cut will start by this year as the company aims to cut further huge losses due to the recession.
Japan’s biggest automaker Toyota Motor Corp on Tuesday announced that it will be slashing down the production of its vehicles worldwide by as much as 1 million car units to give more utilization to some of the idle plants under its arsenal.
In a statement released on Tuesday, Toyota executives said that some 10 percent or 1 million cars will be slashed from the production line all over the world within this year.
The car company said that there are a number of underused and idles plants, which they want to makes use of.
The statement added that Toyota will start the cuts with its New United Motor Manufacturing Inc. plant. The NUMMI is a joint venture with US automaker General Motors Co, which also suffered huge losses amid the recession.
Also, the production lines in several plants in Japan and the United Kingdom will be shut down temporarily as Toyota analyze which plants should remain operational.
With the recent adjustments, Toyota will have only 9 million production capacity each year.
But a company spokesperson said that the move was to ensure full operational capacity to all its plants that has a break-even point of 70 percent.
Toyota said that it will be back in profit before the end of next year. Toyota, citing its August sales, forecasted a lower annual loss.
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